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*This article was originally published in aprio.com on February 27, 2025. Authored by Jay Cho and Carl Budenski

Recent headlines regarding the potential for new tariffs under President Trump’s administration have put the world economy on high alert. While the details and scope of the tariffs are changing too rapidly to speculate on final versions, the oscillation has only heightened feelings of uncertainty for the companies that could be impacted. How can you prepare for a future state that changes daily?

While we may not know what finalized tariffs will look like, we can leverage past trends and industry proficiency to anticipate potential impacts and help you develop agile mitigation strategies.

Understanding potential impacts

Regardless of which countries and materials the tariffs are ultimately levied against, the most expected outcome is increased prices for affected products. Although tariffs are theoretically designed to impose on foreign countries and support domestic manufacturing of goods, the reality is that the indirect impacts are felt on a broader scale, with the actual cost of the tariffs being passed on to importers, exporters, and buyers, both domestically and abroad. Businesses and consumers alike should also brace for potential supply chain disruptions and time-to-market disruptions as impacted stakeholders scramble to innovate solutions that will mitigate direct impacts on their respective bottom lines.

Importers and exporters dealing with goods affected by any future tariffs can also likely expect changes in the culture of compliance, especially in the form of increased enforcement by U.S. Customs and Border Protection (CBP). Investigations and penalty cases will likely rise if new tariffs go into effect.

Creating proactive strategies

Companies don’t need to wait for tariffs to go into effect before taking steps to prepare. Many of the most powerful strategies for mitigating the impacts of tariffs can be set into motion now, often with beneficial results. Any company importing or exporting goods and materials, especially multinational companies, can help set themselves up for success with these five steps:

1. Review your customs strategy
   Potential tariffs are a good reminder of how important it is to periodically review your customs strategy and consider whether it might be necessary to reclassify your product for customs and tariffs purposes. The Harmonized Tariff Schedule (HTS) code you’ve been using historically may not be the best or most accurate option anymore. As tariffs evolve and change, so will the HTS codes specifically impacted. Similarly, review the country of origin for your products and whether it’s still accurate or could be changed.
   
   Consider completing a customs valuation as a proactive step to review your current strategy and identify potential beneficial changes, such as possible exclusions or alterations to product classifications. A trusted international trade advisor can guide you through this process.

2. Refresh your transfer pricing strategy
   Similarly to reassessing your customs strategy, multinational companies should consider reevaluating their customs valuation and transfer pricing strategy. Completing a transfer pricing study with the help of an experienced advisor will be one of the most powerful tools for mitigating the effects of tariffs.
   
   A comprehensive transfer pricing analysis can help with modeling and understanding the full impact on transactions with related parties and identify procedural steps for minimizing those impacts. A transfer pricing study can also help to identify non-manufacturing or non-importation-related items that may not be subject to duties.

3. Adopt a compliance mindset
   As mentioned above, imposing new or increased tariffs will likely increase scrutiny and enforcement. It’s important to remember that while it’s necessary to trust advisors, they are not responsible for your compliance. Taking a proactive approach can refrain from surprise investigations and penalties. Internal and external audits, performed periodically, can help identify and rectify possible exposure before the CPB gets involved.
   
   Companies can also consider using tools like the Automated Commercial Environment (ACE) portal to report imports and exports for CBP review. Reviewing any contracts in place with vendors and/or customers may also be beneficial. Tariffs could trigger drastic changes in supply costs that one party cannot realistically swallow, requiring contract renegotiations.

4. Speak straight with vendors and customers
   Communication will be one of your most critical and valuable tools throughout these uncertain times. Any tariffs that go into effect will have widespread impacts felt by you, your competitors, vendors, and customers. Have honest conversations with your vendors and/or customers about price changes. As mentioned above, renegotiate contracts proactively to mitigate volatility before it reaches your bottom line.
   
   
5. Build a powerful network of advisors
   No single person can be fully knowledgeable in all the moving parts of international trade. Surround yourself with the best advisors and trust in your team of professionals. The most critical roles in preparing for and responding to potential tariffs include a trustworthy customs broker, a knowledgeable international trade advisor, and an experienced transfer pricing advisor.

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Each June, we honor the enduring contributions of Caribbean Americans to the fabric of our nation—and to the strength and resilience of our business community. Caribbean-American Heritage Month is a time to celebrate a legacy of innovation, perseverance, and leadership that continues to shape industries and communities across New York, New Jersey, and beyond.

Caribbean-American entrepreneurs have long been at the forefront of progress, breaking barriers in business, education, government, and the arts. Leaders like Congresswoman Yvette Clarke, whose Jamaican roots inspire her advocacy for immigrant communities, and Dr. Wayne A.I. Frederick, the Trinidadian-born surgeon and former president of Howard University, exemplify the excellence that emerges when diverse heritage and determination intersect.

We also recognize rising stars in the corporate and entrepreneurial worlds, like Keisha Senter, a proud Grenadian-American and strategist driving equity in media and philanthropy, and Karl Racine, the Haitian-American attorney who became the first elected Attorney General of Washington, D.C. Their leadership reflects the bold spirit and global vision that defines Caribbean heritage.

At the NYNJMSDC, we are proud to work with Caribbean-American suppliers and partners whose innovation drives sustainable growth and opportunity. Their stories inspire our mission every day.

This month, we invite our network to join us in celebrating the cultural richness and entrepreneurial excellence of Caribbean Americans. By uplifting their voices, we deepen our commitment to equity, inclusion, and shared prosperity.

Let us continue to honor the past, empower the present, and build a future where every minority-owned business can thrive.

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Making retirement planning errors at any time, but especially when there’s economic uncertainty
and market volatility, can create difficulties in achieving your long-term goals. Here are five
common, and potentially costly, mistakes you’ll want to avoid.

1. Getting out of the market after a downturn
   When the market takes a big hit, you may be tempted to sell investments in your retirement
   portfolio and hold the proceeds in cash. If you do, you may miss the gains if the market suddenly
   turns around.
   
   Consider taking a long-term approach by keeping a strategic mix of asset classes in your
   portfolio: stocks, bonds, and cash alternatives. The combination that’s right for you will depend
   on a variety of factors, including how comfortable you are with market volatility (risk tolerance),
   what you’re investing for (objectives), and how long before you’ll need to tap into your accounts
   (time horizon).
   
   And think about periodically rebalancing by checking your accounts to see if market activity has
   shifted your investments away from your desired asset allocation. If it has, you may want to buy
   and sell investments to bring your accounts back into alignment.

2. Not taking full advantage of retirement accounts
   Consider contributing up to the maximum allowable amount into your qualified employer-
   sponsored retirement plan (QRP), such as a 401(k), 403(b), or governmental 457(b) plan. This
   can help fund your retirement as well as reduce your taxable income.
   
   If you are unable to contribute the maximum amount and your employer offers a matching
   contribution, try to contribute at least as much as the match — otherwise, you are leaving free
   money on the table.

3. Buying too much of your company’s stock
   If your employer’s stock is an investment choice in your 401(k), you might want to consider
   limiting the amount you own. With your salary already tied to your company’s fortunes, you
   may not want a sizable part of your retirement savings to be similarly dependent.

4. Borrowing from your retirement plan
   Many QRPs offer loans to participants. Unless you need the money for an emergency, try not to
   use this option. Borrowing can be an expensive choice in two ways:

In addition, cashing out of your 401(k) when you move to a new employer might be costly.
Know your distribution options when changing jobs.

5. Underestimating the cost and length of retirement
   Some crucial factors to take into account:

• Longevity: If you retire around age 65, you could spend 25 years in retirement. As a result, you may need to save enough to last that long, or longer.
• Health care: Even with Medicare, you could have expenses for supplemental insurance, some prescription drugs, and nursing home care.
• Lifestyle sticker shock: Retirees may need approximately 80% of their preretirement income each year.

A financial advisor can help educate you regarding your options so you can decide which ones
make the most sense for your specific situation.

This advertisement was written by Wells Fargo and provided to you by John Nelson.

This article has been prepared for informational purposes only and is not a solicitation or an offer to buy any security or
instrument or to participate in any trading strategy. Investing involves risk including the possible loss of principle. Asset
allocation cannot eliminate the risk of fluctuating prices and uncertain returns. The accuracy and completeness of this information
is not guaranteed and is subject to change. Since each investor’s situation is unique you need to review your specific investment
objectives, risk tolerance, and liquidity needs with your financial professional(s) before an appropriate investment strategy can be
selected. Also, since our firm does not provide tax or legal advice, investors need to consult with their own tax and legal advisors
before taking any action that may have tax or legal consequences.