Due to the fact that trade with the EU/UK is one of the most important areas for our business, I have been closely following the US and UK trade details. The US has imposed a series of tariff hikes on tariffs, thereby making goods imported from the EU more expensive.
As businesses, we know that reducing costs for consumers can mean increased revenues. In order to compete with other businesses in the same industry, we have to find ways to do so. This means we have to reduce our operating costs and increase sales.
While doing so, we must also make sure that our supply chain is effective enough to continue to provide products or services to US consumers at a fair price. This means we must do our best to minimize the amount of our goods that reach the EU at the point of export.
A trade update is important because it provides a broader understanding of our supply chain and demonstrates our willingness to do the necessary steps to reduce the cost of our goods. Without a trade update, customers may be under the mistaken impression that we are profiting from unfair trading practices.
Despite our efforts to maintain the integrity of our supply chain, there are many occasions when our products may end up in the EU without us knowing it. For example, transportation companies pick up goods during their travels in the US and transport them to the EU. Or goods may be shipped in the same way as imports are transported from the US to the EU.
Customs regulations of the EU and the UK differ significantly. As a result, goods will be assessed according to different criteria depending on which country they end up in. Once the decision is made, it may be difficult to correct it. Additionally, several countries within the EU are associated with customs union members. Some customs regulations differ from other countries within the customs union. When goods are being delivered to EU customers, it is often a moot point if the services rendered were actually provided by the service provider or if the goods were picked up in the US and transported to the EU.
In many cases, consumers may not even know how the goods were delivered. Even if it was determined that goods were indeed picked up in the US and then shipped to the EU, there may be no documentation to prove that the goods were really delivered.
Many countries in the EU are associated with customs union members. Many customs regulations differ from other countries within the customs union. For example, customs regulations may vary according to which country the goods were picked up in.
This is why it is important for US businesses to get information about changes in the policy on tariffs before they are implemented in their business. It is imperative that we make any changes to our supply chain ahead of the time that the information becomes official and published in trade policy.
If you have been following the current trade updates, then you already know that the EU has imposed more tariffs than expected on its exports to the US. The administration of the imposition of these tariffs will take time, but it is important that we do what we can to minimize the effects of these policies.
If you haven’t been following the UK trade update, now is the time to start. I have provided an overview of the details and how this has affected business throughout the world. You should now be able to determine what steps to take to make your business more competitive in the global market.