Beating the Tariff Tsunami: Trade Strategies You Need to Know
- Schulz Trade Law
- Feb 13
- 3 min read
Beating the Tariff Tsunami: Trade Strategies You Need to Know
Feb 13, 2025
In the ever-changing landscape of international trade, compliance professionals are the unsung heroes, tasked with steering their organizations through the choppy waters of tariffs, regulations, and shifting policies. The world of international trade has been in a state of flux, with tariffs, trade wars, and policy changes with the Trump administration creating a complex and often unpredictable environment for businesses when considering trade strategies.
In this episode, we sit down with Michelle Schultz and Marina Mekheil from Schultz Trade Law to explore practical solutions for navigating these turbulent waters. As seasoned professionals with experience in both the public and private sectors, they offer a unique perspective on how companies can stay ahead of the curve and protect their bottom line.
Key Points
The Simply Trade podcast dives into the turbulent world of trade compliance, unpacking the challenges and opportunities presented by fluctuating tariffs and global trade tensions. Joined by Michelle Schulz and Marina Mekheil from Schulz Trade Law, the conversation offers a wealth of practical insights for companies navigating this high-stakes landscape.
The discussion kicks off with a stark reality: trade compliance is no longer a back-office function but a strategic asset. Schulz and Mel stress that compliance teams can save companies significant costs by leveraging tools like Chapter 98 provisions, duty drawback programs, and free trade agreements. Chapter 98, often underutilized, allows duty-free treatment for goods like U.S. products returned after repair or processing abroad, but it demands meticulous documentation. Similarly, duty drawback programs, while complex and slow—sometimes taking years—can recover paid tariffs if companies maintain impeccable records and navigate inventory methods like FIFO or LIFO.
Proactive Engagement
A recurring theme is the need for proactive engagement. Schulz emphasizes integrating trade experts early in supply chain decisions, contract negotiations, or market expansions to avoid costly last-minute fixes. This foresight is critical in a world where tariffs can shift overnight, as illustrated by sudden changes in Colombia’s trade policies. Agility, the experts argue, is non-negotiable.
The episode also underscores the evolving role of compliance as a value center. Far from merely avoiding penalties, compliance teams can recover funds and drive savings, making them indispensable at the executive table. However, this requires clear, concise communication. Mekheil highlights the importance of distilling complex tariff impacts into actionable briefings for time-strapped executives, ensuring informed decisions and management support.
Teamwork
Collaboration emerges as another key takeaway. Effective tariff mitigation often hinges on teamwork between trade lawyers, customs brokers, and internal compliance staff. Whether setting up foreign trade zones or filing drawback claims, this multidisciplinary approach tailors solutions to a company’s unique needs.
Next Steps
Investigate audit classifications, understand cost drivers, and stay adaptable. For compliance professionals and executives alike, the message is clear: embrace trade compliance as a strength to not only survive but thrive in today’s unpredictable trade environment.
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