The U.S. President Donald Trump’s threats to impose tariffs on Mexican and Chinese imports have spurred American companies into action, with many seeking assistance from lobbyists in Washington and exploring potential loopholes to offset the potential financial blow.
Trump’s threats involve an approximate 5% tariff on all Mexican goods, which could rise to 25% by October if Mexico doesn’t take action to reduce or eliminate the number of illegal aliens crossing into the U.S. When it comes to China, it’s an extension to the existing tariff battle between the two largest economies in the world. The U.S. administration has moved to increase tariffs on a significant number of Chinese goods from 10% to 25%.
The fear of these tariffs has prompted companies to look for ways to avoid the financial strain that they could induce. Businesses that import goods from Mexico and China are reaching out to trade lawyers and consultants to navigate the potential requirements and costs associated with these tariffs. Some firms are also attempting to strengthen their lobbying efforts at Capitol Hill, trying to influence lawmakers and the Trump administration to reconsider the tariff threats.
Companies are also seeking alternatives and loopholes to mitigate the impact of these tariffs. Tactics involve reviewing their supply chains to possibly shift production out of Mexico or China, and exploring changes to product coding that might exclude certain products from tariffs.
Moreover, firms are even revisiting the terms of the North American Free Trade Agreement to see if any of the provisions might shield them from the new tariffs. The office of the U.S. Trade Representative’s list of goods exempted from prior tariffs is also being examined by companies.
Overall, the threat of potential tariffs placed by Trump on Mexican and Chinese imports has put U.S. companies into overdrive, as they scramble to find ways to mitigate the financial implications.
