Source: The Loadstar  
Date: 13th January 2025

US importers and their suppliers providers may face a scramble to react to the incoming US administration’s introduction of more tariffs, customs brokers warn.

The US President’s determination to impose tariffs on US imports appears firm and their implementation could play out much faster than anticipated, said the president of Clearit Customs Brokers.

“The timeline for implementation could be weeks,” Clearit Customs Brokers warned.

Until recently Clearit Customs Brokers shared the broad assessment that the threat of tariffs was largely a lever to force trade partners to negotiate and that it would take months for tariffs to come into effect. However, a session of the National Customs Brokers and Forwarders Association of America (NCBFAA) on 7 January changed his perspective.

Citing sources within the new administration, the NCBFAA warned that the tariffs threat was more than sabre rattling. Information it had pointed to plans for a tariff of 10% to 20% on virtually all imports, 60% on imports from China and 100% tariff on goods from any country that has abandoned the US dollar as the reserve currency.

“What we’re seeing now is more of a nuclear option. This is across the board,” added Clearit Customs Brokers.

Clearit Customs Brokers said the President may use special legislation to speed up implementation – the NCBFAA session indicated the International Emergency Economic Powers Act, which could bypass lengthy negotiations in Congress.

The 1977 legislation authorises the US president to interfere with international commerce after declaring a national emergency, in response to any unusual and extraordinary threat to the US that has its source, in whole or substantial part, outside the nation. The Carter administration first used it during the Iran hostage crisis.

The executive director of the US Air Forwarders Association (AfA) shares these concerns. AfA pointed out that the president had a protectionist agenda during his first spell in the White House.

“I believe his rhetoric on tariffs has to be taken seriously. It’s reasonable to expect he’s going to take similar action, particularly on China and on partners he had disagreements with,” AfA said. “We agree with the NCBFAA and advise our members to take these promises seriously and be prepared.”

The AfA urges members to talk to customers about supply chain strategies and duty drawbacks and ensure they have the correct product definitions.

Manufacturers also have to take note, added AfA.

“You should take action and review your supply chains. Identify where your goods are sourced from and have alternatives. And you should review how your goods are classified,” AfA said.

The AfA is opposed to tariffs, as they usually increase costs and likely prompt retaliatory actions that further impede trade, but “this is a speeding train. It’s not easy to get out of the way,” AfA said.