Our Moment
A Global Economy Under Pressure
The old model of offshoring production is breaking down. Rising tariffs, legal battles, and unstable supply chains have created the most volatile trade environment ever. What were once cost-effective and predictable imports now carry mounting prices, risks, and uncertainty.
Tariffs and Trade Restrictions
- $50 Billion per Month: New tariffs imposed since 2025 generate staggering monthly revenue for the U.S. government.
- Layers of Duties: Section 232 (national security), Section 301 (trade enforcement), and IEEPA-based actions now cover thousands of product lines.
- Constant Changes: Presidential executive orders and retaliatory measures shift rules in real time.
Legal and Political Uncertainty
- Dozens of Lawsuits: Businesses are challenging presidential tariff authority in federal courts.
- Risk of Reversal: Depending on outcomes at the Supreme Court, entire tariff regimes could be upheld or struck down.
- Policy Volatility: Companies cannot plan long-term with rules that may change overnight.
- Tariff Tools Still Available: Even if IEEPA authority is curtailed, the President retains multiple levers to raise tariffs, including:
- Section 232 – National security–based tariffs.
- Section 301 – Trade enforcement and retaliation authority.
- Section 201 – Safeguard measures to protect domestic industries from surges of imports.
- Section 122 of the Trade Act – Balance of payments tariffs or quotas.
- Sections 701/731 – Antidumping and countervailing duties.
- Other trade statutes and executive powers that allow targeted tariff action.
Compliance Pressures
- Tariff Stacking: Overlapping tariff programs compound landed costs and complicate sourcing decisions.
- Bonding Increases: Importers face higher customs bond requirements to cover rising duty exposure.
- Complex Filings: Companies must manage expanded reporting, new tariff codes, and shifting enforcement priorities.
- New Entry & Classification Requirements: Added documentation and classification rules increase processing time and errors — with new transshipment restrictions forthcoming and limits on foreign Importer of Record (IOR) arrangements likely.
- Customs Broker Costs: Higher volume of formal entries drives up brokerage fees and compliance costs.
- Enforcement Risk: U.S. Customs has intensified audits, penalties, and trade compliance monitoring. Areas such as forced labor, intellectual property, and consumer product and food safety will further drive importers toward never-ending data requirements and a global trade system reconfiguration.
Fragile Supply Chains
- Geopolitical Disruptions: Conflicts and sanctions reroute shipping lanes and delay deliveries.
- De Minimis Eliminated: As of August 29, the $800 exemption for small-package imports is gone. Millions of parcels now require full customs entry — closing a loophole that fueled e-commerce growth.
- Foreign Retaliation: Counter-tariffs target U.S. exporters, complicating global trade relationships.
The End of the Offshore Advantage
- Rising Wages Abroad: The low-cost labor edge that drove offshoring is eroding.
- Compliance Costs: Stricter environmental and labor rules in key sourcing countries raise expenses.
- Long Lead Times: Shipping delays and inventory risks outweigh theoretical savings.
Setting the Stage
Taken together, these pressures mark a turning point in global trade. Tariffs are rising, compliance is tightening, and the offshore advantage is disappearing. The question is no longer if companies will bring production closer to home — but where that opportunity will land.
This is where Our Vision begins: to turn global disruption into local prosperity and ensure that reshoring works for communities here at home.
