Global Trade Roundtable Recap: Actionable Insights on Tariffs, Logistics, and Sourcing Strategies

To help clients navigate today’s global trade environment, Anchin’s Consumer Products Group recently hosted a roundtable focused on the latest developments in customs, tariffs, and global logistics. Featuring insights from Peter W. Klestadt, Esq., Partner at Grunfeld, Desiderio, Lebowitz, Silverman & Klestadt LLP, and Andrew D. Rotondi, CIO/COO of Dynamic Distribution Services, Inc. & Dynamic Worldwide West, Inc., the presentation unpacked how shifting trade regulations are impacting sourcing strategies, supply chains, and operational planning.

After the roundtable occurred, the U.S. Court of International Trade issued a permanent block on several tariffs. While some see this as a clear win, the administration has brushed it off as a minor setback and is widely expected to pursue alternative measures to achieve its trade objectives.

Hosted virtually, the session attracted a wide range of executives, importers, and supply chain professionals eager for actionable strategies to reduce their tariff exposure in the time of uncertainty.

Customs Complexity Are Rising

Beginning with an overview of the current U.S. tariff structure, which has become increasingly intricate following a series of executive orders and updates, attendees learned how many of the newly implemented tariffs are cumulative rather than standalone. As a result, they significantly increase the total landed cost of imported goods, especially those originating from certain countries.

Peter and Andrew provided clear guidance on which products are subject to reciprocal tariffs, and which are not, addressing common misconceptions about exclusions and exceptions. They also shared important updates around de minimis thresholds, country-specific carve-outs, and Chapter 98 provisions, offering attendees clarity on what may or may not be exempt under the current framework.

The discussion highlighted the concept of “goods in transit” and how enforcement agencies are interpreting transport modes, a critical nuance that could significantly affect compliance and cost.

Opportunities for Relief

With rising tariff rates squeezing profit margins, the conversation shifted to practical tools and techniques companies can use to offset costs, including:

• First Sale Valuation: Structuring transactions to use the factory-to-middleman price as the basis for duty calculations, potentially reducing exposure.
• Service Unbundling: Separating non-dutiable elements such as quality control or market research into stand-alone service agreements to avoid unnecessary duty charges.
• Country-of-Origin Shifting: Applying “substantial transformation” rules to reclassify where a product is deemed to originate from. This is often critical when components or finishing processes span multiple countries.
• Bonded Warehousing and Drawback: Utilizing bonded warehouses to delay duty payments and claiming refunds on duties paid for goods that are later exported. Businesses must pay careful attention to the specific timelines and qualification requirements.
• Reclassification and Chapter 98 Provisions: Applying lesser-known duty exemptions for certain use cases such as repairs, alterations, or temporary imports.

Attendees were also encouraged to evaluate their sourcing and shipping processes with a customs specialist.

From a logistics standpoint, the discussion emphasized the ground-level impact of current trade dynamics. With steep tariffs on many goods, especially apparel, footwear, and accessories, many brands are urgently rerouting production and seeking alternative manufacturing hubs. However, this shift isn’t without complications. Attendees noted that many offshore factories in countries like Vietnam and Ethiopia are still owned or backed by Chinese entities, which could lead to additional scrutiny or future policy changes aimed at tariff circumvention.

Another major concern was warehouse capacity, particularly in bonded facilities. On the West Coast, bonded space is nearing capacity, driving up storage costs. While the East Coast availability remains more stable for now, availability is quickly tightening. In response, some companies are reserving container space months in advance and even prepaying for warehousing ahead of delivery to secure logistics.

On the retail front, brands are facing growing tension. Many retailers are holding firm on pre-negotiated pricing, leaving vendors to absorb tariff-related increases. This pressure is especially severe for orders scheduled around peak back-to-school and holiday seasons, with delays now threatening fulfillment windows. Following the session, Walmart revealed plans for layoffs and upcoming price hikes set to take effect within a few weeks. Walmart’s CFO, John David Rainey, stated that the current tariff levels are “still too high” for the company to maintain. These cost increases may exceed what any retailer, even Walmart, can realistically absorb.

Looking Ahead

Trade policy is inherently political and can shift rapidly, often with little notice. A new agreement between the U.S. and China was announced on May 12, 2025, outlining a 90-day temporary reduction in tariff rates as both sides return to the negotiating table. Then on May 28th, a permanent halt was ordered by the U.S. Court of International Trade. While the adjustment may offer short-term relief for some importers, businesses should continue building flexible, resilient supply strategies. By rethinking their sourcing, reviewing compliance, and collaborating across teams, businesses will be best positioned to navigate the next phase of uncertainty. As this is a fluid situation, Anchin’s Consumer Products Group will be monitoring it closely to assess and update on impacts to the industry.

For more information or to explore strategies related to these tariffs and their potential impact for your business, please reach out to Marc Federbush, Partner and Leader of Anchin’s Consumer Products Group, Michael Greenfield, Partner, Thomas Miranda, Partner, or your Anchin Relationship Partner.