Navigating Tariffs

A survival guide for Delaware's Global Businesses

BY CARLA SYDNEY STONE

For many Americans, President Donald Trump’s tariff policies have made it clear just how dependent we are on international trade. At World Trade Center® (WTC) Delaware, where trade is our middle name, we know something about this.

Global networks like the World Trade Centers Association® (WTCA) — an international trade organization connecting more than 300 World Trade Center® locations in nearly 100 countries and territories, including WTC Delaware — provide us with unique resources to help companies navigate the new economic landscape created by U.S. tariff policies. We do this by providing education, supporting outgoing and inbound trade missions, offering company counseling, hosting information sessions, and connecting Delaware companies to global experts and more than one million affiliated companies in the WTCA network.

As the strategic partner to the International Trade Administration, other U.S. agencies, and the World Bank, we have access to policymakers, trade experts, and resources to help Delaware companies become successful international businesses.

Companies tell us they don’t know how to minimize the impact of tariffs on their business. They can start with several critical steps:

• Know the country of origin, as defined by U.S. Customs and Border Protection, for any imported product. This is crucial because tariffs and trade policies often depend on where a product is manufactured — not just where it’s purchased. Misidentifying the country of origin can lead to incorrect tariff classifications, unexpected duties, customs delays, or even penalties. Accurately determining origin helps your business avoid costly surprises.

• Make sure that any imported product is correctly classified according to the Harmonized System (HS) codes. Administered by the World Customs Organization, the standardized system of numbers get assigned to products traded internationally and is used worldwide to identify each specific product, administered by the World Customs Organization. Proper classification matters because HS codes determine applicable tariffs, trade regulations, and restrictions.

• Be sure that products are correctly identified as either finished goods or components for assembly when importing or exporting. Finished goods may face different tariff rates or restrictions compared to components or raw materials.

• Understand the use of the ATA Carnet, an international customs document that allows businesses to temporarily export or import goods for commercial purposes without paying duties or value-added taxes. This means companies don’t have to pay tariffs upfront when moving these goods across borders temporarily, which can significantly ease cash flow and simplify customs procedures. One thing to note: ATA Carnet applies only to temporary imports and exports. It does not cover goods intended for sale or permanent import/export.

• Assess whether leveraging Delaware’s Foreign Trade Zone (FTZ) No. 99 or utilizing free trade zones overseas can strategically reduce your tariffs burden. FTZs allow companies to defer, reduce, or even eliminate customs duties on imported goods by designating a secure area where products can be stored, assembled, or manufactured before entering U.S. commerce. Knowing the rules, advantages, and procedures of FTZ No. 99 and international free trade zones is essential to optimizing your tariff strategy and staying competitive.

In the end, staying flexible is essential. Trade policies will continue to evolve. WTC Delaware is here to provide clarity and support to companies facing rising costs in global business. Whether your company is paying higher tariffs on imports, dealing with retaliatory tariffs on exports, or navigating new supply chain challenges, we’re ready to help.

Along with the 300-plus members of the global WTCA network, WTC Delaware’s shared goal is to ensure our businesses continue to thrive in the current tariff climate.

Carla Sydney Stone is president of World Trade Center® Delaware