President Trump has threatened that from November 1, the United States imposes 100 % additional tariffs for goods imported from China, above existing tariffs, in retribution to expand its rare element’s export control controls and add five new elements to the list.
This declaration is obvious that more than shaking the markets, naturally set up a wave of confusion, speculation and possible planning on the world transport routes.
This question is very painful for customers who are shipping from China to the United States, but now it is impossible to answer it: “What happens if the new tariffs will be implemented while those containers are still on the water?“
Although there are many unknowns associated with this threat, the truth is simple. If it becomes formal, Someone intends to pay.. ..
Not because of politics or politics, but because it is the same thing as Sale contract and selected Incoterms Rules dictate.
Ships are currently on the way, so the risks may
Thousands of containers are currently on water .. loaded bills, payments made, Planned delivery ..
If the threat is formalized, it The date and domain of execution Would be important ..
- If it is true At the time of arrivalImporters can face double duties upon arrival in the United States.
- If it is true Only to goods shipped after November 1Shipping cargo may save it.
- If the execution is delayed or disputed, the cargoes can be stuck to the customs customs for weeks.
Possible myth
Every importer, transportation, and manufacturer speaks of “possible planning”, scenario implementation, marginal calculation, contract reviews and contacts with its agents to ask the same question: “What happens?”
But let’s be honest .. In this case, mathematics has already been done in your sales contract.. When the tariff came to its place, the responsibility is constant ..
Business with no sympathy with “what is possible” or “what can” have only signed. Governments can join business policy overnight. There is no buffer, there is no clause to soften the blow. The only question is who attracts it ..
Explicit reality
For containers at the moment, no one knows how this game will be until the official announcement is lost.
Each cargo is now a “floating uncertainty” that represents a coin between typically and 100 % shock for ground costs.
Business is done with contracts, not wishing.
So check your contracts, get to know your Incoterms, and face the facts .. In World Trade, Someone will always pay, And sometimes, may be You.. ..
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