The Art of the Trade Deal – Top Five Strategies to Avoid or Reduce Section 232 and 301 Duty Increases

NovaLink, like many other nearshore manufacturing partners is concerned about the long-term affect the new trade tariffs implemented by President Trump, and what these costs will mean for manufacturers who produce their goods in Mexico. Specifically, the White House has imposed tariffs of 25% on imported steel and 10% on imported aluminum coming from Mexico.

For manufacturers in Mexico, the duty increase they must keep watch concerns Section 232: in short, Section 232 is the provision of the Trade Expansion Act of 1962 which authorizes the President through tariffs or other means, to adjust the imports of goods or materials from other countries, in this case, Mexico.

However, it isn’t all bad news concerning the Section 232 tariffs for nearshore manufacturers: trade analyst Lenny Feldman, writing for the Sandler, Travis and Rosenberg blog (STR is a law firm specializing in International Trade and Customs Law) points out there are strategies manufacturers can employ that will help to alleviate the impacts of the tariffs, reducing the costs of nearshore manufacturing to your company as the new trade deals are being negotiated.

These strategies include:

Exclusion Requests
Tariff Engineering
Operational Engineering
Valuation
Bonded Facilities

NovaLink urges any nearshore manufacturing partner who has concerns regarding the new tariffs to take a moment and read the complete article by Sandler, Travis and Rosenberg by clicking on the link here. As always, if you have any questions regarding nearshore manufacturing to contact NovaLink by filling out the Contact Us form or calling 956-621-7362

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