The election results have once again put international trade and customs regulations in the spotlight. It is essential to stay ahead of the curve and understand the potential implications of the re-elected President Trump’s policies on customs, import and export activities. This blog aims to provide an overview of the expected changes as well as how we can support you in navigating these developments.
The incoming administration’s suggested measures include a 10 to 20% tariff on all imports and a potential 60% tariff specifically targeting imports from China. These measures are part of a broader economic strategy that includes tax cuts and deregulation. The increased tariffs could lead to higher costs for businesses and potential disruptions in supply chains, as companies will need to decide whether to absorb these costs, pass them on to consumers or adjust their sourcing strategies.
In addition to tariff increases, the administration may revisit and renegotiate existing trade agreements to secure more favourable terms for the U.S. This could have an impact on cross-border trade dynamics and create uncertainty for businesses engaged in international trade. Companies should be prepared for potential changes in trade policies and consider how these might affect their operations and supply chains.
New policies are also likely to focus on encouraging domestic manufacturing and reducing reliance on foreign imports. This could involve incentives for businesses to source materials and products domestically, such as lowering the corporate tax rate to 15% for companies that move their production back to the U.S. While this may benefit domestic industries, it could also pose challenges for businesses that rely on global supply chains.
The administration may implement more targeted tariffs on specific products, such as electric vehicles manufactured overseas, in response to international trade practices that are perceived as unfair. Additionally, there could be retaliatory measures against countries that impose taxes on U.S. tech companies' overseas profits. These targeted actions could further complicate the trade landscape and require businesses to stay vigilant and adaptable.
In conclusion, the re-election of Donald Trump is likely to bring significant changes to international trade policies. Businesses must stay informed and proactive in adapting to these developments in order to mitigate potential risks and capitalise on new opportunities.
Next steps for your business
To ensure that your business is well prepared to navigate the changes brought about by the policies of the incoming administration, it is recommended to take the following steps:
- Review customs and trade programmes: Implement well-established and beneficial customs and trade programmes to mitigate the effects by reducing or eliminating costs while improving free cash flow.
- Comprehensive compliance review: Undertake a comprehensive review of your current customs compliance status and supply chain flows in order to identify any potential risks and areas for improvement.
- Implement compliance changes: Make necessary changes to your compliance programmes, tariff classifications and customs procedures.
By taking these proactive steps, you can ensure that your business remains compliant and competitive in the evolving landscape of international trade. We are here to support you every step of the way.
We support your business
In light of the ongoing disputes and the complexities of customs legislation, it is crucial for companies to ensure that their compliance strategies are robust and well informed. PwC Switzerland offers comprehensive customs services to help businesses navigate these challenges effectively.
Leveraging our Trade Activator tool can help your company analyse customs data and optimise trade strategies. It helps to optimise trade strategy, minimise costs and risks as well as ensure compliance with trade rules.
With the power of advanced analytics on multiple data sources, we can assess your current position and boost trade efficiency by pinpointing customs inefficiencies, limiting customs and excise duties and mitigating the risks of non-compliance.
By partnering with PwC, you can navigate the complexities of international trade with confidence and ensure that your business is well positioned for success.
