Navigating Trade Winds: What Peach County Businesses Need to Know About Tariffs

June 13, 2025
Development Authority of Peach County

While the direct impact of trade policies like those initiated by President Donald Trump's administration might not always be immediately apparent, Peach County businesses and industries should be aware that these shifts can create ripple effects throughout the supply chain. Even if your company doesn't directly import or export, increased tariffs can indirectly affect your operations through rising costs from vendors and clients.

Finance leaders nationwide have acknowledged a range of impacts, with some actively seeking ways to mitigate tariff costs while others are preparing for potential fallout from their affected partners. For example, an executive in the education sector initially thought their organization was immune to tariffs. However, they soon discovered vendors raising prices, leading their board to realize that "everyone's affected" by these broad economic changes.

Colin Haynes, a consultant specializing in tariffs and cross-border solutions, emphasizes that companies should proactively address tariffs and involve their entire leadership team. Here are some key takeaways for Peach County businesses, keeping in mind Georgia laws and compliance standards:

Navigating Tariff Impacts: Key Strategies for Peach County Businesses

Verify Your Product's Classification Code

Don't just assume your product's classification code is correct. This code is fundamental to determining the tariffs you pay and your available options. Haynes stresses the importance of verifying this code, as all subsequent analysis hinges on its accuracy. Many companies mistakenly rely on codes used for years, which can be a red flag. Taking the time to confirm your product's classification is a crucial first step in understanding and potentially reducing your tariff burden.

Develop a Plan for "Reasonable Care"

Businesses should assess whether their approach to tariffs aligns with U.S. Customs and Border Protection (CBP) guidance for "reasonable care." This involves having clear processes in place to meet customs' sourcing requirements, accurately classify goods, and ensure the correct amount of duties are paid. Implementing standardized systems can help Peach County businesses avoid costly trade compliance violations, which can be far more significant than other penalties from the Internal Revenue Service.

Scrutinize Invoice Line Items

Now is an opportune time to meticulously check your invoices, line item by line. A common issue observed is unexpected tariff charges for domestically sourced items. If you're being charged by a Georgia-based or other U.S. supplier for a tariff, question it. This diligent review can help identify errors and prevent unnecessary costs.

Explore Tariff "Engineering"

Consider "tariff engineering," which involves understanding your product and exploring ways to redesign it to lower duties. This creative approach might involve altering materials, components, or manufacturing processes. For instance, some footwear companies have historically used felt in their products to reduce tariff costs. This strategy requires a deep understanding of your product and the applicable tariff regulations.

Build a Tariff "War Chest"

Given the ongoing volatility in global trade, it's wise to consider establishing a tariff "war chest." If your Peach County business works with manufacturers outside the U.S., you may need to invest in adapting your product or operations to mitigate tariff impacts. While these changes might incur initial costs, they could be essential for long-term financial stability in an unpredictable trade environment.

By proactively addressing these points, Peach County businesses can better navigate the complexities of trade policies and minimize their financial exposure, ensuring compliance with both federal and Georgia-specific business regulations.