Key Takeaways:
- Importers of record handle all U.S. tariff payments and documentation, regardless of company size or location.
- Tariffs may be cumulative and apply alongside Section 301, 232, antidumping, and other duties based on product type and origin.
- Mitigation strategies like duty drawback, FTZs, and bonded warehouses are available but require strong compliance systems.
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We know that global supply chains are shifting, and U.S. tariff regulations continue to evolve. At MGO, we regularly assist assist clients who are navigating complex import/export scenarios, from multinational manufacturers and distributors to emerging e-commerce and technology companies.
As trade policy and enforcement tighten, importers across all industries are facing real financial and operational exposure. Below are the answers to the top 10 most common questions we receive on U.S. tariff obligations, compliance challenges, and mitigation strategies.
1. Who handles paying tariffs — the importer, exporter, or country of origin?
In the U.S., the importer of record handles paying tariffs and maintaining compliance. This includes proper classification, valuation, and reasonable care. Foreign companies can register as U.S. importers of record — but you should note that foreign governments cannot be held responsible.
2. Do tariffs apply to all companies and individuals, regardless of size or business structure?
Yes. U.S. customs law applies uniformly to all importers, including individuals, small businesses, creators, and influencers. There is no blanket exemption based on entity type, although some trade programs offer relief for eligible goods.
3. Can tariffs be cumulative or “stacked?”
Yes, tariffs can stack. The base duty rate under the Harmonized Tariff Schedule (HTS) may be layered with additional tariffs under Section 232, Section 301, or others. You’ll see this more commonly with steel, aluminum, and goods from China.
4. Are there exceptions for products imported for repair, warranty, or re-export?
Yes. Relief may be available under HTSUS Chapter 98 but requires strict documentation and adherence to U.S. Customs regulations. Improper use can trigger penalties.
5. How do trade agreements like USMCA affect tariffs and rules of origin?
Agreements like USMCA impact rules of origin, which determine whether goods qualify for reduced tariffs. Proposed updates for 2026 may change content thresholds, especially in the automotive and manufacturing sectors.
6. How do tariffs affect transfer pricing and related-party transactions?
Tariffs influence customs value, which in turn affects COGS and profit margins. Related-party pricing must meet U.S. Customs and IRS arm’s-length standards. Royalty payments tied to a sale may also be dutiable.
7. Are duty drawback programs or mitigation strategies available?
Yes. Duty drawback may apply to Section 301, Section 201, and other standard duties — but not Section 232 tariffs or antidumping duties. Additional strategies include:
- First sale for export
- Foreign trade zones
- Bonded warehouses
These require strong documentation and internal controls.
8. How do tariffs apply when goods are sourced or assembled in multiple countries?
Tariffs depend on the country of origin of the finished product, determined by substantial transformation. Assembly in another country does not always change origin — each case requires close review.
9. Are tariff rates changing for specific industries or products?
Yes. Ongoing investigations may impact pharmaceuticals, semiconductors, electric vehicles, drones, and more. Policy changes can occur rapidly, so you should be vigilant about monitoring
10. How can importers access customs data and stay compliant?
Importers should register for a CBP ACE Secure Data Portal account to access shipment-level data. The importer of record has primary access rights and can delegate to brokers or third parties.
Strategic Support for Importers Navigating Complex Tariff Challenges
MGO can help importers understand their tariff exposure, manage documentation, mitigate risk, and improve customs compliance processes. Whether you’re a mid-market manufacturer, tech company, or global distributor, our Tax Services team can help evaluate duty strategies and reporting readiness. Contact us to learn more.