Companies need to reassess their import risk quickly
The new Trump administration will prioritize reducing foreign country access to the U.S. market and is expected to use a wide range of laws to disrupt that trade. The first Trump administration was extremely active in not only employing well known trade laws to offset foreign competition, but also dusting off trade restrictions that had been dormant. Companies should expect the new administration to address all aspects of foreign business in the United States, meaning everything from imported goods, to foreign nationals and foreign capital.
Here are a few anticipated challenges and related considerations your company should assess to increase the chances of mitigating your risk:
Imports could become prohibitively expensive through tariffs.
Is your company ready to participate in investigations that might precede and shape new tariffs? Could your company avoid new tariffs based on types of processing and countries in your supply chain? If new tariffs do apply, does your company have a compelling case to be exempted?
Foreign national employees will be scrutinized.
Do your company’s foreign national employees with technical backgrounds have valid licenses authorizing access to advanced technologies? Can the laws authorizing or affecting their immigration status be challenged? Do your employees’ spouses need employment authorization too?
Partner companies may be prohibited due to their home country.
Are your company’s overseas suppliers vulnerable to being prohibited based on their activities in particular countries? Will certain classes of your imports be prohibited because they are associated with unfair practices? Will new or existing foreign investments be prohibited?
The new Trump administration is almost certain to show the same expertise as the first one in employing the full range of laws to pursue these topics and creating new ways to disrupt foreign competition.
If your company utilizes international sourcing or financing, it is critical to reassess your risk now to mitigate, if not possibly avoid, new trade disruptions that are coming.
For more information, please contact John Amaya, Corey Norton or Adam Wilczewski.
