The 2:00 Minute Warning

One week ago, President Trump announced the imposition of the tariff program that the United States will be putting into effect.

The very next day, we hosted an extremely important webcast that addressed this very issue along with our friends from the NITL, CSCMP, and the Global Shippers Forum. We had an outstanding panel that included Karyn Booth and Daniel Ujczo from Thompson Hine, and Holly Pearce, Director of Logistics for Otis Elevator. The timing couldn’t have been better and spurred a rush of questions from our audience.

Little did we or anyone else know that one week later the battle over tariffs between China and the United States would escalate to almost unimaginable heights. Or that we would see a 90-day pause for non-retaliating countries announced this afternoon.

In coming weeks, questions will continue to arise and there will be a lot of factors for shippers to consider. That brings up a very interesting point that a friend of mine and very successful executive brought up: The tariff situation can either really help or hurt your company. Since these tariffs will affect you and your competitors, the companies who do a better job of managing the tariff situation can use this as an advantage in competing against companies who are reactive and do not have any type of tariff management program.

For now, here were a couple of key points from the webinar.

First of all, you’re not alone if you’re confused about the final cost of tariffs. There continues to be a tremendous amount of confusion and uncertainty about how much we'll be actually paying for tariffs. Many are asking if past tariffs combine with new ones or replace them. Others want to know when they take effect. Is it when goods are shipped or when they arrive or another time?

A second highlight was the need to have a tariff management program. Holly Pearce explained what items are top of mind for her and shared tips for what to consider in a tariff management plan during the webinar. This included short term practical considerations and some longer-term items.

If you’re  looking for help developing a tariff management program, you know the drill: Call TranzAct! We have a wealth of experience and expertise that we can share with you as you put together a great tariff management program that can help you assess some very important issues such as: How will these tariffs impact my bottom line? How will tariffs impact our cash flow? What reciprocal tariffs are likely to change? How do we navigate agreements with our suppliers?

A third point is that you need great data. When changes like these happen you need to have access to a wide range of reports, and quality data on your past shipping activities. Much of that data comes from your freight payment history. If your current system isn’t providing all you need, TranzAct’s extensive freight audit and payment services can provide accurate information to manage your tariff program.

There were many other highlights to the webinar and I can’t emphasize enough: find time to listen to the recording. Then if you have any questions whatsoever, give us a shout – we’d be happy to help. Simply give us a call, send me an email, or let's meet one-on-one via Calendly.

BY MIKE REGAN, CO-FOUNDER OF TRANZACT

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