Customs wars: golden times for logistics and customs agencies?

Customs wars: golden times for logistics and customs agencies?

Faced with the return of trade tariffs, experts in purchasing management, logistics and customs procedures must prepare for disruption. Proposed tariffs on imports from Mexico, Canada and the EU resemble previous protectionist measures. While these policies raise costs for manufacturers, they also create growth opportunities for logistics and supply chain management companies on behalf of customers. As companies look for ways to deal with new trade barriers, the logistics sector stands to gain from warehouse expansion, increased demand for customs specialists and greater emphasis on regional trade routes.

Understanding customs and its impact

Customs duties are taxes levied by governments on imported goods to protect domestic producers by increasing the cost of foreign products. However, they often have unintended consequences, such as increasing costs throughout the supply chain and slowing international trade. When tariffs are introduced, companies must either bear the higher costs, pass them on to consumers, or seek alternative sourcing and distribution strategies. For logistics professionals, customs duties increase the complexity of customs clearance and require greater operational flexibility.

Customs duties and distortions in the supply chain

Customs duties often lengthen delivery times, increase procurement costs and complicate regulatory provisions. Purchasing teams need to reassess material sourcing strategies and logistics leaders need to optimise transport routes, customs clearance procedures and storage facilities near key border crossings. Proactive adaptation of the supply chain will be key to minimising risk.

Transition to border storage

Uncertainty around customs is driving companies to move from a „just-in-time” model to a „just-in-case”, which increases the need for storage space close to border crossings. Transshipment, bonded warehouses and distribution centres help mitigate border delays and ensure continuity of supply. Stronger partnerships with logistics service providers (3PLs) are becoming key to maintaining efficiency and avoiding costly disruptions. Additionally, increased customs clearance times further emphasise the importance of warehouses and distribution centres close to key transhipment points.

Impact of nearshoring and friendshoring

Customs duties accelerate nearshoring - moving production closer to key markets. Mexico remains the main alternative to China, but potential new US tariffs on imports from Mexico add uncertainty. Companies need to carefully analyse the risks and consider other options for nearshoring and friendshoring-that is, sourcing from allied countries to increase supply chain resilience. Friendshoring allows companies to minimise geopolitical risks by working with stable trading partners. Logistics service providers need to develop multimodal transport solutions and cross-border distribution strategies, to deal effectively with these changes.

Growing demand for customs and trade expertise

As trade barriers increase, there is a growing need for expertise in customs clearance, tariff classifications and trade regulations. Companies need to keep abreast of dynamically changing regulations to avoid penalties and delays. More and more companies are investing in trade management software and customs consultancy services, to improve compliance. Logistics companies specialising in cross-border trade can expect an increase in demand for their services in terms of customs optimisation and efficient customs clearance.

Key strategies for supply chain professionals

To remain competitive in a rapidly changing commercial environment, supply chain professionals should:

• Diversify suppliers: Reduce reliance on a single country to increase supply flexibility, e.g. by selecting suppliers with production capacity in multiple countries.
• Optimise storage: Invest in facilities close to borders to prevent supply disruption.
• Use data analytics: Apply AI-based forecasting to assess the impact of customs and plan procurement.
• Increase customs expertise: Ensure regulatory compliance and minimise commercial costs.

Future

As global trade trends evolve, companies that adapt their strategies quickly will gain a competitive advantage. Supply chain resilience will be key, and investment in digital tools, strategically placed warehousing and trade experts will help companies minimise risk. The logistics sector is poised for growth as companies look for ways to deal with new trade challenges.