Tariffs aren’t just taxes—they’re economic weapons. With new trade restrictions looming, businesses have two choices: absorb the cost or get creative.
💡 Smart companies don’t just pay up—they strategize.
Here’s how they do it:
🔹 Tariff Engineering – Tweaking product designs to fall into lower-taxed categories. (Converse cut tariffs from 48% to 7.5% just by adding a thin fabric layer under its insoles!)
🔹 Country of Origin Maneuvering – Shifting production or final assembly to tariff-friendly regions. (Hyundai assembles parts in South Korea instead of China to lower trade costs.)
🔹 First-Sale Pricing – Paying tariffs on the manufacturer’s price, not the retail markup. (A little-known loophole that many global brands use.)
🔹 Bonded Warehouses & Temporary Bonds – Deferring duties by storing goods tariff-free until sold or re-exported.
🔹 Strategic Inventory & Order Timing – Pre-ordering goods before tariffs hit and adjusting stock levels to minimize exposure.
Governments create barriers. Businesses find loopholes.
🚀 Want the full breakdown?
📩 I break it all down in my latest newsletter: [Insert Link]
#Tariffs #TradeStrategy #GlobalTrade #SupplyChain #BusinessGrowth #EconomicPolicy #ImportExport
Peggy Van de Plassche is a value creation strategist and senior advisor with over 20 years of experience in private equity, financial services, healthcare, and technology. She works with investment firms, boards, and C-suite leaders to accelerate portfolio company performance, drive operational transformation, and unlock long-term value. Peggy specializes in the execution of complex value creation plans—spanning capital allocation, digital enablement, transaction advisory, and leadership alignment. Her work consistently bridges strategy and implementation, helping investors and operators maximize EBITDA and enterprise value. A founding board member of Invest in Canada, she also brings deep expertise in public-private partnerships and institutional capital deployment—critical levers for competitive advantage in today’s global landscape. Her clients have included BMO, CI Financial, HOOPP, OMERS, GreenShield Canada, Nicola Wealth, and Power Financial. Learn more at peggyvandeplassche.com.
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