News / Launch of new tariffs 'a speeding train', be ready, US importers warned

US importers and their suppliers and logistics providers may face a scramble to react to the incoming US administration’s introduction of more tariffs, customs brokers warn.

President-elect Donald Trump’s determination to impose tariffs on US imports appears firm and their implementation could play out much faster than anticipated, said Adam Lewis, president of Clearit Customs Brokers.

“The timeline for implementation could be weeks,” he warned.

Until recently Mr Lewis shared the broad assessment that the threat of tariffs was largely a lever to force trade partners to negotiate, and that it would take months for tariffs to come into effect. However, a session of the National Customs Brokers and Forwarders Association of America (NCBFAA) on 7 January changed his perspective.

Citing sources from within the new administration, the NCBFAA warned that the tariffs threat was more than sabre rattling. Information it had pointed to plans for a tariff of 10% to 20% on virtually all imports, 60% on imports from China and 100% tariff on goods from any country that has abandoned the US dollar as the reserve currency.

“What we’re seeing now is more of a nuclear option. This is across the board,” added Mr Lewis.

He said Mr Trump may use special legislation to speed up implementation – the NCBFAA session indicated the International Emergency Economic Powers Act, which could bypass lengthy negotiations in Congress.

The 1977 legislation authorises the US president to interfere with international commerce after declaring a national emergency, in response to any unusual and extraordinary threat to the US that has its source, in whole or substantial part, outside the nation. It was first used by the Carter administration during the Iran hostage crisis.

Brandon Fried, executive director of the US Airforwarders Association (AfA), shares these concerns. He pointed out that the incoming president had a protectionist agenda during his first spell in the White House.

“I believe his rhetoric on tariffs has to be taken seriously. It’s reasonable to expect he’s going to take similar action, particularly on China and on partners he had disagreements with,” he said. “We agree with the NCBFAA and advise our members to take these promises seriously and be prepared.”

The AfA urges members to talk to customers about supply chain strategies and duty drawbacks and ensure they have the correct product definitions.

Manufacturers also have to take note, added Mr Fried.

“You should take action and review your supply chains. Identify where your goods are sourced from and have alternatives. And you should review how your goods are classified,” he said.

The AfA is opposed to tariffs, as they usually increase costs and likely prompt retaliatory actions that further impede trade, but “this is a speeding train. It’s not easy to get out of the way,” he said.