The current trade war between China and the US continues to make headlines across the country. Just today trade talks resumed between the two large economies with agreements to have meetings on US soil in early October. The hope, of course, is that China and The White House can come to an agreement to help stem further increases in tariffs. But what will this mean for the American business owner, currently stuck in the crosshairs of an unpredictable and frustrating political climate? If you’re an importer of raw materials here in the US, simple talks won’t help lift the constant worry of increased tariffs, custom taxes, or any other unforeseen blow to your bottom line.
South of the US border, steel importers are feeling the pinch, as the US Commerce Dept. announced an ‘anti-dumping’ tariff on Mexican and Chinese manufacturers. These foreign companies manufacture here in the US and artificially suppress pricing, directly competing with American manufacturers, eating into their profits.
If your business falls into any of these categories or is beginning to feel the effects of the trade wars raging all over the globe, it’s time to look into importing or exporting your goods using a Foreign Trade Zone. If you haven’t been taking advantage of using Foreign Trade Zones to help hedge against tariff’s and custom taxes, then your business is shedding profits, becoming less competitive, and will continue to be impacted by this unpredictable global climate.
Foreign Trade Zones allow business owners to import or export materials and goods into or out of the US but allow the business owner to decide when to pay custom taxes and on what product. It’s a simple solution and Tri-Link, Inc. has established Foreign Trade Zones near ports of entry all over the United States. Stop allowing governments, both domestic and foreign, to impact your business, and take back control of your profits now.
Published on September 11, 2019