Polo 4PL Newsletter #65

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How Trump’s New Tariffs Are Disrupting Global Shipping & What You Need to Know:

The Trade War Heats Up: Major Tariff Changes Take Effect February 4

After months of speculation, the U.S. has officially launched a new wave of tariffs, significantly altering trade policies with Canada, Mexico, and China. These changes mark a major shift in the freight and logistics industry, with ripple effects for importers, exporters, and shippers alike.?

What Are the New Tariffs?

As of February 4, 2025, at 12:01 AM, the following changes will take effect:

A 25% tariff on all goods from Canada and Mexico (except energy imports, which face a 10% tariff) A 10% tariff on all Chinese imports (on top of existing tariffs) Elimination of the de minimis rule, which had allowed duty-free imports under $800 from all three countries Cancellation of duty drawbacks for Mexican and Canadian imports, removing the ability for importers to request duty refunds on re-exported or destroyed goods

Additionally, President Trump has hinted at upcoming tariffs on the European Union, which could further disrupt international supply chains.?

How Will These Tariffs Affect Shippers & Importers?

The impact will be immediate and far-reaching. Here’s what businesses should expect:

• Higher Costs for Small Importers & Retailers – The end of the de minimis rule means even small shipments that were previously duty-free will now be subject to tariffs and customs fees. This could hit e-commerce sellers, retailers, and small businesses hard.
• More Expensive Raw Materials & Finished Goods – Industries that rely on Canadian, Mexican, or Chinese imports—from automotive to electronics to manufacturing—will see cost spikes, which may get passed on to consumers.
• Increased Customs Fees & Paperwork – The removal of duty drawbacks and de minimis exemptions means more administrative burdens, higher compliance costs, and potential shipping delays.
• Port Congestion & Delays – As businesses rush to clear shipments before February 4th, ports may experience congestion, causing longer processing times for drayage and customs clearance.

What Can Businesses Do to Minimize Disruptions?

Fast-Track Shipments Before the Deadline – Any shipments already in transit before February 1st may be exempt from the new tariffs, provided they have the correct CBP certification. Businesses should expedite orders to clear customs before February 4th.

Reassess Sourcing & Suppliers – Importers may need to explore alternative sourcing strategies, such as shifting to domestic suppliers or nearshoring from non-tariffed regions.

Optimize Customs & Tariff Strategies – Leveraging Free Trade Zones (FTZs)and bonded warehouses can help defer or eliminate some duties. Importers should also consult trade experts to explore potential tariff engineering strategies.

Renegotiate Freight & Supplier Contracts – With rising costs, businesses should negotiate with suppliers and logistics providers to lock in lower rates or explore bulk shipping discounts.

Stay Informed on EU Tariffs – If the European Union is next in line for tariffs, businesses should begin planning for potential disruptions in transatlantic trade.

How Polo 4PL Can Help?

At Polo 4PL, we understand that changing trade policies create major challenges for importers and shippers. Our team can help businesses navigate customs compliance, optimize supply chain costs, and find alternative shipping solutions to minimize tariff impacts.

Need assistance with customs clearance or shipping strategies? Contact Polo 4PL today to secure your supply chain against tariff disruptions.

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