Managing Modern Tariff Challenges Through Cloud Computing Solutions
In the ever-evolving world of international trade, customs brokers are facing unprecedented challenges as a result of the significant tariff changes that have marked the first half of 2025. The tariff landscape, largely driven by increased tariffs between the US, China, and the EU, is forcing customs brokers to adapt and evolve to meet the demands of the new trading environment.
One key development is the transition from traditional per-entry pricing models to retainer or hourly pricing, better reflecting the consultative value that customs brokers now provide. This shift allows for a more strategic partnership between customs brokers and their clients, as they navigate the complexities of international transportation and trade compliance.
Don Mabry, Senior Vice President of Global Trade Solutions at Infios, is a specialist in helping customers navigate these complexities. With over 25 years of experience in supply chain management software applications, Mabry is at the forefront of this transformation.
Technology is playing a crucial role in this transition. Customs brokers are increasingly relying on technology partners with deep trade expertise, who can interpret regulations and implement changes rapidly. Cloud-based software solutions, for instance, can implement regulatory changes globally and instantaneously for all users.
AI-powered tools like Intelligent Document Processing (IDP) are also proving invaluable. These tools can extract data from commercial documents and automatically populate entry forms, reducing processing time by approximately 65%. Robust validation engines can check for common errors before submission, reducing rejections and penalties.
Advanced platforms are incorporating automated validations and guidance features during the filing process, further streamlining the customs clearance process. Upcoming rules for Russian sanctions will require detailed documentation of seafood origins, including vessel names, flags, and call signs, another area where technology can provide a solution.
The current tariff volatility has exposed the limitations of legacy systems and manual processes, requiring customs brokers to adopt technology that can adapt just as quickly, such as cloud-based solutions. The implementation and modification of tariffs are happening rapidly, often announced through social media before formal policy announcements, creating unprecedented challenges for global supply chains.
The tariff changes have had a profound impact on global supply chains. The US, for example, has implemented multiple tariff hikes, including a new 50% tariff increase on many Chinese-origin goods under Section 301, layered on top of previous tariffs of 34%, 25%, and 7.5% on various product categories. These policies have led to a record-high average effective US tariff rate of approximately 14.7% to 15.8%, the highest since the 1930s, raising consumer prices especially on clothing, footwear, and automobiles.
The increased complexity in tariff classifications and calculations due to multiple overlapping tariffs, specific product-based duties, and reciprocal retaliatory tariffs by the EU and China, is placing a greater burden on customs brokers. More documentation and compliance efforts are required to navigate new rules, especially for automotive products under USMCA provisions.
The loss of de minimis exemptions for imports from China and Hong Kong, causing even small shipments under $800 to face substantial tariffs (up to 145% baseline) and fees, is resulting in higher volumes of parcels requiring customs declarations and tariff application, adding to workload and potential delays.
The impact on global supply chains is significant. Rising landed costs and supply chain disruption from layered tariffs are slowing down trade flows, forcing companies to reconsider sourcing and production locations. Increased price volatility and uncertainty in supply chains are impacting inventory management and contract negotiations.
Shippers and importers face higher transportation and customs clearance costs, which may be passed on to consumers, leading to inflationary pressures on goods like apparel, shoes, automobiles, and electronics. Potential shifts in trade routes or supplier bases to circumvent high tariffs are increasing operational complexity and costs.
In summary, 2025’s tariff environment is creating a challenging landscape for customs brokers and global supply chains, marked by heightened complexity, increased compliance burdens, and significant cost pressures. Customs brokers are responding by investing in adaptable technology with robust update mechanisms and intuitive interfaces, and by expanding their service offerings to include tariff strategy consulting and supply chain reconfiguration guidance, moving beyond traditional entry filing to become true strategic partners.
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- Customs brokers are transitioning from traditional pricing models to retainer or hourly pricing, reflecting their consultative value in navigating complex international logistics and supply chain challenges in the context of global trade and rapid tariff changes.
- Technology partners with deep trade expertise, such as cloud-based software solutions and AI-powered tools like Intelligent Document Processing, are proving invaluable for customs brokers, automating documentation and compliance processes to streamline customs clearance.
- In the face of tariff volatility, customs brokers are embracing adaptable technology with robust update mechanisms and intuitive interfaces to manage tariff classifications, calculations, and filings. They are also providing tariff strategy consulting and supply chain reconfiguration guidance to evolve beyond traditional entry filing.
- Tariff changes in 2025 have exposed the limitations of legacy systems and manual processes, pushing customs brokers to adopt technology solutions that can adapt as quickly as the changing tariffs, particularly in response to unexpected announcements through social media.
