This month’s topic concerns the unbelievable rate of change happening in our country. The new administration has come right out of the gate creating massive amounts of change, and there has been so much change in so short a time that the public seems to be in a state of shock.
One of those changes, which appears to be ongoing, is that of tariffs. How can businesses predict and deal with them?
Why Tariffs?
The current administration’s use of tariffs has been levied against Mexico, Canada and China in an effort to stem the tide of illegal immigrants and the flow of drugs into the U.S. The action against Mexico is to force that country to take action against its resident drug cartels. Such cartels have also been operating in Canada, and China has been supplying precursor chemicals to the cartels for the manufacture of those drugs.
Initially, the administration implemented an additional 25 percent tariff on all goods imported from Mexico and Canada and an additional 10 percent tariff on imports from China. Shortly after these tariffs were implemented, the administration announced exceptions from the tariffs for Canada and Mexico. Tariffs were lowered on imports from these two countries that comply with the North American trade deal enacted during the administration’s earlier term.
These tariffs and their changes leave businesses wondering if they will remain stable. In fact, these tariffs could be used as a negotiating tool, so more changes could still be on the table. As countries come to the negotiating table, tariffs against them could wind up being reduced.
Note that the tariffs on China were originally put in place during this administration’s earlier term to deal with the U.S.-China trade deficit. The intervening administration held these tariffs in place and, in some cases, increased them. When the current administration was voted into office even higher tariffs were announced. They’re not as high as the media has hyped, but they have increased from their previous rates.
Predicting and Coping with Tariffs
Many manufacturing companies have survived by importing raw materials from other countries. Such businesses will eventually have to deal with tariffs or perhaps find other sources to acquire what they need at lower rates.
You must do your homework for your business, products, services and market. Your strategy should ensure that if a tariff remains in place, you’ll still be able to market and sell, and if the tariff changes, you’ll continue to have that capacity.
Realize that there is one trend you can count on from the current administration: their long-term goal is to bring manufacturing and production back into the U.S. That is another factor you can use in your strategy. Eventually, production that is brought back to the U.S. will not have any tariffs at all.
Conduct your own research and evolve the best strategy specifically for your company to ensure the optimum survival related to these tariffs.
Visit saleskillers.com to explore our comprehensive books that cover all these insights and more. Equip yourself with the knowledge to stay proactive and drive your sales success, even in uncertain times.
Don’t miss out—unlock the potential of your marketing and sales today!
Recent Comments