Our European and American experts are available to help you limit the impact of the new US tariffs.

5 Ways To Mitigate The US Tariffs

Understanding how to navigate the complex world of US tariffs is critical for any company engaged in cross-border trade. While tariffs can significantly increase costs, there are several ways to legally reduce or reclaim them. Below are five tried-and-tested strategies businesses can consider to stay competitive:

1. Use Exclusions

Often referred to under Section 301, certain tariff exclusions may be granted based on the product’s origin or type. It’s important to stay up to date with evolving exclusion lists and submit applications where appropriate.

2. Change the Country of Origin

Reassess your production or sourcing locations. Free Trade Agreements (FTAs) like DR-CAFTA can dramatically reduce duty liabilities, making a shift in supply chain an effective mitigation tool.

3. Update Classification

Accurate classification under the Harmonized Tariff Schedule (HTS) can make a big difference. Many businesses overlook classification reviews, but a detailed analysis of product composition may reveal opportunities for cost savings.

4. Reduce the Declared Value

Programs such as First Sale for Export allow businesses to use the manufacturer’s price instead of the reseller’s markup to calculate duties. Also, reviewing procurement strategies may lead to reductions in declared customs value.

5. Reclaim Import Duties

Through the duty drawback program, goods that are imported and then re-exported within five years may qualify for a refund of duties. The substitution method can even be applied to goods of the same HTS classification, offering more flexibility.

Solutions do exist. At Trade Duty Refund, we specialize in helping companies identify and implement tariff mitigation strategies. Get in touch with our experts to learn how we can assist your business.