Talk to Me – Tariff Terror

Ok, I know I told you all last post we were going to talk about exceptions and exemptions, and you were probably super excited to read my deep dive into how to take advantage of them, but I changed my mind. Yes, cue the cliché about “women changing their minds” but seriously, something else has been on my mind lately: tariffs.

I wanted to write about a hotter topic. As if this blog will be the first time it’s been talked about—tariffs.

This whole tariff “ordeal” seems like a mess. The tariffs certainly have a good number of business owners in a panic. If I owned a small business, even a mid-sized business right now, I’m not sure I would be able to sustain the additional duties.

How Did We Get Here?

Let’s take a step back. This didn’t all start with President Trump’s trade policies, though they certainly escalated things. Tariffs have been part of U.S. policy since 1789, originally used for three main reasons:

1. To raise government revenue
2. To protect American producers from foreign competition
3. To reduce trade barriers through negotiation leverage

For a long time, tariffs were the primary revenue source for the federal government—until the income tax came along in 1913. Tariff rates have ebbed and flowed over the years. At one point, by 1912, tariffs accounted for nearly 20% of federal revenue. When World War I hit, tariffs came roaring back, and the 1922 Emergency Tariff Act reinforced that trend.

Several Presidents have made comments about the necessity of tariffs. President Theodore Roosevelt said, “…It is exceedingly undesirable that this system should be destroyed or that there should be violent and radical changes therein. Our past experience shows that great prosperity in this country has always come under a protective tariff.”

The debate over protective tariffs has always been politically and economically charged.

Fast Forward to Today

Somewhere along the way, China got exempt from paying certain tariffs. Now fast forward to what happened earlier this year, when President Trump imposed sweeping protective tariffs for many countries, commodities, and industries—affecting nearly all U.S. imports. Between January and April 2025, the average tariff rate rose from 2.5% to an estimated 27%— a staggering increase and one of the highest in modern history. (Just a thought to ponder: Do we want tariffs funding the government, or do we want our paychecks to fund the government? – discuss amongst yourselves.)

Now, there are signs of negotiation progress. Headlines report that conversations between the U.S. and China are resuming, possibly with some positive momentum.

Can We Hold On Just a Little Longer?

America is hurting for money—just look at the national debt and look at how much and what DOGE is cleaning up. But sometimes, course corrections come with discomfort. Maybe this is one of those moments. Think of it like getting a tooth pulled—it hurts now, but it could be better for the long-term health of the economy.

(And yes, many of these duty costs may be tax deductible. Check with your accountant, but in many cases, they’re considered a cost of doing business.)

So… can we hold on for one more day? (Cue Wilson Phillips…) “Don’t you know, things can change? Things’ll go your way… if you hold on for one more day.” 🎶

Need Help Navigating This?

Jokes aside, tariffs are complicated. If your business is struggling to understand the implications or needs support managing classifications, exclusions, or sourcing decisions, our team is here to help.

Schedule a no-charge consultation with one of our experts to assess your company’s tariff exposure, explore classification strategies, and strengthen your approach to managing duty costs in today’s shifting trade landscape.