U.S. trade policy lays the groundwork for how New Hampshire businesses can import and export goods and services. These rules affect inputs into manufacturing processes as well as finished goods and services. Free Trade Agreements and other tools can promote trade between countries, while other measures, such as tariffs, can cause businesses to reconsider how they do business.
On Sunday, February 2, 2025, President Trump confirmed he will move forward with 25 percent tariffs on imports from Canada and Mexico, and 10 percent tariffs on imports from China, beginning on Tuesday, February 4. Implementation of the Canada and Mexico tariffs is paused for 30 days while negotiations take place with both countries on long term solutions.
During this pause, businesses should consider mitigation strategies and how tariffs may impact them if implemented.
The Office of International Commerce is a central resource that can help answer questions about tariffs. Contact Adam Boltik for information. The Business Resource Specialists can also help businesses navigate challenges.
Strategies for Importers and Exporters
The following information are general recommendations and resources and are not a replacement for a business’s responsibility to comply with all U.S. customs laws and regulations. BEA recommends consulting with an expert such as a licensed customs broker on specific situations and questions.
Planning Ahead
With the delayed implementation of tariffs on imports from Canada and Mexico, now is the time to begin planning for impacts on trade with Canada, China, Mexico, and other countries.
- Prepare your business for possible tariffs of 10-25 percent on most imports, especially with what is known about actions or potential actions towards Canada, China, and Mexico.
- Optimize product classifications and tariff codes to identify cost-saving opportunities.
- Plan for supply chain diversification and seek alternative sources of imported products, including in countries with reduced tariff exposures or through onshoring.
- Implement financial protection strategies, which can include inventory optimization and reviewing pricing strategies or cost reduction opportunities.
Diversifying Supply Chain
Diversifying key manufacturing sources is one of the best ways to become resilient to policy changes and natural disasters or reduce costs. New Hampshire companies have access to a national
Supplier Scouting program through the
New Hampshire Manufacturing Extension Partnership (NHMEP). This free service through its national network to any manufacturer looking to identify U.S.-based supply chain options to help find alternative sources of inputs. Contact
Brian Knapp at NHMEP to learn more.
Duty Drawbacks
A duty drawback is a refund process where some tariffs, taxes, and fees can be reimbursed if imported goods are exported without being changed or destroyed. Businesses can file for drawbacks through a customs broker or can do so themselves through
U.S. Customs and Border Protection.
Stockpiling
Many New Hampshire companies have begun stockpiling and holding extra inventory as a strategic approach to tariffs. Increasing orders of imported products now can build up a supply before new tariff rates are in place. This can help mitigate the immediate impact of tariffs and enable companies to keep prices stable, but it can also add to storage costs.
Using a Foreign Trade Zone
Foreign Trade Zones, such as
New Hampshire’s Zone 81, which covers all or part of nine of the state’s 10 counties, provides an opportunity to defer or eliminate duties on imported merchandise. In a Foreign Trade Zone, duties are not required until the imported product enters the customs territory of the United States. Imported products can be manufactured and then re-exported or stored for a time without paying for tariffs.
Other Resources
Tariff information, including any exclusions or exceptions, are published in the
Federal Register, the journal of the U.S. Government. Additionally, information on tariffs on imports into the United States are published in the
Harmonized Tariff Schedule.