As the logistics industry prepares for potential changes in 2025, including increased Section 301 duties, businesses must stay ahead of the curve to mitigate disruptions and avoid escalating costs. Proactively preparing for these shifts will be key to maintaining efficiency and profitability. Here are five strategies to help you navigate the evolving environment:

  1. Build buffer stock before Chinese New Year (CNY) and the new White House administration: Stock up on inventory to reduce reliance on just-in-time deliveries and potential duty increases.
  2. Secure warehouse space early: Book warehouse space in advance to ensure availability and avoid last-minute scrambles.
  3. Review and adjust your financing options: Discuss increasing your line of credit with your banker to cover potential duty increases and other logistics costs.
  4. Ensure Customs Bond Sufficiency: Verify your customs bond covers potential increases to prevent bond stacking and minimize collateral requirements. Utilize ACE reports to review your bond sufficiency and ensure adequate coverage.
  5. Reevaluate your supply chain partnerships: If using a middleman or a Non-Resident Importer (NRI), consider applying the first sale rule to optimize duty payments.

If you need assistance navigating these steps, Mohawk Global Trade Advisors offers expert guidance and support to ensure full compliance with Section 301 tariffs for smoother trade operations.

For further guidance on trade compliance or to discuss your specific needs regarding Section 301, reach out to Mohawk Global Trade Advisors to ensure you’re adequately prepared for the proposed changes.

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