Source: Supply Chain Dive
Date: 29th July 2025

Tighter rules of origin and documentation requirements under new tariff measures could cost U.S. businesses up to $71 billion annually.

New research from the central bank highlights the significant economic burden U.S. companies may face from increased trade compliance costs due to recent tariff measures. Businesses should expect compliance costs to rise by 1.4% to 2.5% of a good’s value, amounting to an estimated $39 billion to $71 billion per year.

The added costs stem not only from the tariffs themselves but also from the expanded regulatory requirements, which now involve far more complex trade documentation and verification processes.

The most significant source of increased costs is tied to stricter rules of origin, which require companies to determine and document the national source of imported goods precisely.

For industries like automotive manufacturing, this means obtaining certifications for steel and aluminium, and accounting for the labour value in production. These new standards introduce higher content thresholds and more exhaustive administrative procedures, raising the time and effort needed to remain compliant and qualify for preferential tariffs.

Companies across the manufacturing sector are already feeling the effects. One major automaker reported paying over $1.1 billion in tariffs in a single quarter, while another cited $350 million in related costs during the first half of the year.

Though some companies are pursuing strategic cost reductions to mitigate the impact, central bank researchers warn that their current estimates may understate the true burden. Navigating a more complex tariff schedule increases the risk of administrative errors and penalties, further inflating compliance costs for U.S. importers.