Preparing For New Trump Tariffs: 10 Approaches

Here are 10 ways to avoid, mitigate, or delay the costs of new tariffs that President-elect Trump has promised for countries like China, Canada, and Mexico:

1. Confirming country of origin: Determine whether tariffs apply by confirming the country of origin of your imported goods. When goods have inputs from multiple countries, you must carefully apply the "substantial transformation" standard utilized by US Customs and Border Patrol (CBP) to determine country of origin.
2. Seeking alternative sources: If imported goods originate from a targeted country, determine whether they can be sourced from a nontargeted country at lower cost.
3. Confirming HTS Codes: Although tariffs were promised on "all" goods from targeted countries, historically, tariffs apply only to goods classified under certain Harmonized Tariff Schedule (HTS) subheadings. Classification is complex and errors are common, so carefully verify the HTS classification of your imports.