AmiSight 6/9: How Business Owners Are Navigating the Rising Costs of Trump’s Import Tariffs

Ami Kassar
Jun 9
2 min read

Business owners are taking varying approaches to handling the added costs of President Trump’s import tariffs. Some companies are eating the added costs, most are passing them on to customers, and others are using both legal and illicit methods to lower their import taxes, Inc. reports.

According to a recent report by NBC News, the small portion of entrepreneurs vowing not to pass the costs on to their loyal customers have switched to less expensive suppliers, reduced product sizes, cut work schedules or opening hours to reduce labor costs, and taken a hit on profits to absorb expenses of the levies.

Another group of businesses seeks to take advantage of a 1988 customs measure called the “first sale rule” to lower the rates of duties they owe. This allows importers to claim the value of goods they receive based on their worth when they leave producers’ factories, thereby factoring out price increases that intermediaries often apply as products move through supply chains.

The third group is taking a shadier approach, reportedly accepting proposals from suppliers or shippers in China offering “delivery duties paid” terms. Under those, exporters pay for any tariffs applied—usually making up the difference by significantly understating the value of goods cited on customs documents.