30-Day Pause Gives Companies Opportunity to Develop Plans
The White House has announced significant tariffs on goods coming from Canada (25% except energy resources which will receive a 10% tariff), Mexico (25%), and China (10%). Â
On February 2, a 30-day pause on US tariffs on goods from Canada and Mexico was announced. This provides business owners and company leaders with a short window to understand the impact of these tariffs and develop plans that align with their goals.Â
Impact on Your Company
Owners and leaders of private companies should begin by fully understanding how the announced tariffs can impact their imports, exports, and overall business costs. Start by considering the following:Â
- Imports: Are you the importer of any goods from outside the country, particularly Canada and Mexico?Â
- Imports: Have you adjusted the prices for goods they are selling to take any tariff into account for the cost of goods?Â
- Imports: For orders that have been placed by a customer but not delivered (e.g., are coming from Canada but aren’t in the US yet), do you need to inform them that there will be an additional tariff charge?Â
- Exports: What products do you export to countries that might be considering retaliatory tariffs of their own?Â
- Exports: Do you need to update/review any contracts with vendors/customers in Canada and Mexico to confirm who is responsible for the tariffs?Â
- Business Costs: Beyond the goods you buy and sell, consider secondary impacts of tariffs such as how a potential increase in gas prices would impact your company’s overall costs.Â
For More Information
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