The global trade landscape has undergone a seismic shift in recent weeks, leaving businesses scrambling to adapt. With a wave of new tariffs disrupting supply chains, importers and exporters must rethink their strategies to remain competitive. At LOGICUS, our latest client survey reveals the stark reality:

· 29% of businesses report 10-25% revenue impact from enacted tariffs

· 18% face 25-50% revenue impact

· 13% have seen more than half their revenue affected

Smaller and mid-sized importers are bearing the brunt of these changes. Companies are responding with layoffs, reshoring, and consumer incentives—but there’s no one-size-fits-all solution.

The Tariff Surge: A Quick Recap

Since early 2025, the U.S. has imposed a barrage of tariffs, including:

· 25% on Canada/Mexico goods (excluding energy/potash) not meeting USMCA rules

· 10% on Canadian energy resources & potash

· Additional 10-25% on China-origin goods (on top of existing tariffs)

· 25% on steel/aluminum, Venezuelan oil imports, and passenger vehicles

· 10% universal tariff on all U.S. imports (effective April 5)

With more changes likely, businesses must act now to safeguard their operations.

Four Pillars to Mitigate Tariff Pain

1. Leverage Trade Agreements (Like USMCA)

Many assumed the USMCA was obsolete after recent tariffs—but it’s more valuable than ever. The deal still neutralizes Most-Favored Nation (MFN) tariffs, and qualifying goods can avoid new duties or at least exempt U.S.-originating content.

Key Action:

· Strengthen origin determination processes

· Audit bills of materials to maximize USMCA benefits

2. Optimize Cash Flow with Foreign Trade Zones (FTZs)

With duties skyrocketing, liquidity is critical. FTZs allow businesses to:

· Defer duty payments until goods enter the domestic market

· Store or manufacture goods tax-free if re-exported

Key Action:

· Explore FTZ strategies in the U.S. (200+ zones), China (20+), or India (250+)

3. Engineer Tariff & Origin Strategies

Strategic adjustments can lower duty costs:

· Tariff Engineering: Modify products to qualify for lower-duty classifications

· Origin Engineering: Shift sourcing/production to non-targeted countries

Key Action:

· Balance customs benefits with labor, tax, and logistics costs

4. Master Customs Valuation Tactics

Even small valuation adjustments can lead to major duty savings:

· First Sale Rule: Deduct middleman markups from import value

· Other deductions: Explore additional ways to reduce dutiable value

Key Action:

· Audit valuation methods to minimize stacked tariff impact

The Path Forward: Stay Agile

The trade war’s next moves are uncertain—tariffs could escalate, ease, or shift entirely. The key to resilience? Flexibility.

· Build redundant supply chains to pivot quickly

· Monitor policy changes in real-time

· Adopt proactive trade strategies before new tariffs hit

Final Thought: In this volatile climate, businesses that adapt swiftly will survive—and even thrive.