First, I need to say thank you to our associates here at TranzAct.
It’s important to express appreciation when people do a great job and here at TranzAct, our associates do a great job of working with both our customers and their carriers. When these parties are working together well, you can get a healthier and more vibrant supply chain. And that’s why we were honored when Estes Express named us a top 3PL.
LTL carriers in our network, such as Estes, play a vital role in the experience that our customers have in moving their products. We prioritize building great relationships with them and that makes us especially happy to receive their recognition.
Second, we need to provide you with a summary of what we learned on yesterday’s outstanding tariff webcast.
Yesterday, we hosted our third webinar about the latest tariff changes with our friends from the National Industrial Transportation League and CSCMP.
Here’s one important highlight: the litigation involving the tariffs is far from over. In case you haven’t seen the updates, the district court said the tariff actions were unconstitutional, then the circuit court stayed (or essentially delayed) that decision pending their final review. Whoever loses is expected to call upon the Supreme Court. Given the uncertainty, companies need to consider different scenarios to address what happens if they’re ruled unconstitutional, or what happens if they’re in effect.
If they’re ruled unconstitutional, is that the end of tariff changes? What we found out that alarmed me, along with many others, is that the Trump administration has some cards that they can play. For example, they can go to 232 tariffs, 301 tariffs or 122 tariffs or 338 tariffs. Buckle up because if the 122 tariff is applied retroactively, it could be a 15% tariff, not the 10% tariff that’s been on the table. The 338 tariff could be as high as 50%. There’s much more to share, so we encourage you to check out the webinar recording.
What should your company do now? For starters, it’s important for companies to create a Tariff Management Plan that addresses issues like how the tariffs could impact balance sheet and outlines options for different scenarios. There needs to be more than just discussion at this point – companies need to have a plan that says this is how we’re going to proactively address what’s going on to prevent unwanted surprises.
We’re available to help with further understanding the tariff changes and creating a Tariff Management Plan. Give us a call at 630-833-0890 or schedule a time to meet and let's have a conversation.
BY MIKE REGAN, CO-FOUNDER OF TRANZACT
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