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New Tariffs Are Transforming Global Expansion and Operating Strategies

New Tariffs Are Transforming Global Expansion and Operating Strategies
New Tariffs Are Transforming Global Expansion and Operating Strategies
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Written by Mike Morroni.Contact info - MIKE MORRONI - GLOBAL EXPANSION

When all you see around you is fear and doom, someone else spots the opportunity hidden in chaos and reaps huge benefits. With the right partner, that someone could be you and your company. This version may not be final, but tariffs are likely to remain in many cases, and it's time now to come up with an offensive plan for success.

The recently announced tariff system under the Trump administration is already causing significant changes in global markets. While some are preparing for the potential negative effects, others are looking to adapt. Whether you are an importer, exporter, or a business that operates on the ground in many countries around the world, this policy shift could serve as either a setback or an opportunity to rethink your strategy and strengthen your operations.

Key Points
  • Smaller countries may be hit hard if trade balance remains the calculation utilized.
  • Adjustments in locations of production could occur in certain industries if tariffs remain in place.
  • Companies could add new facilities instead of completely relocating their operations.
  • Providers who understand international operations, including tariffs that help companies, will be a vital support of the finance team of all companies.

 

In this article, we'll break down what the new tariffs mean, who they affect, and how your business can stay ahead by making smart, forward-thinking moves in uncertain times.

How to Spot and Seize Global Opportunities

The new tariff measures started with a base tariff of 10% on all imported goods, with specific tariffs of 20% for products from the European Union, 34% for China, and 46% for Vietnam. Now they've been adjusted up for China and temporarily down for everyone else, but the end result is likely somewhere in between.

It's easy to feel overwhelmed when chaos dominates the situation, but those prepared and supported by the right partners can find an opportunity in the storm.

In uncertain times, flexibility is key. Start by getting the facts about the process for exiting countries you are in and how to enter new ones that may have better tariff and trade agreements, understanding key market entry and exit points, and negotiating terms with your providers that protect your business from the volatility of long-term commitments. If your partners who provide you services in international locations push for rigid 3–5-year deals or only can support you in a limited number of locations, it may be time to find ones who can adapt and move with you.

Even if the markets stay down or in flux, this will present opportunities for those with the ambition and liquidity to take action. For instance, slow economic cycles of times or turmoil often create favorable conditions for strategic acquisitions, especially carve-outs, where businesses purchase assets or divisions from larger companies that may be looking to exit certain assets or divisions. To execute this internationally, you'll need the ability to launch operations in new countries quickly and efficiently to take on assets and employees before you close the deal.

Where to Watch: Global Opportunity Zones

  • U.S. Headquarters Companies: Reciprocal tariffs could trigger unintended consequences. U.S. manufacturers that once imported global parts for domestic assembly might now consider full production abroad to sell into international markets.
  • Emerging Sales Channels: Trade negotiations could reduce tariffs on certain U.S. goods in select markets, taking down economic barriers that have existed for years. Businesses that are ready with a market entry plan will be the first to benefit.
  • Agile Production Models: Shift production to countries with lower tariff exposure and keep options open. Today’s trade environment is highly unpredictable. Latin America—especially Mexico, Brazil, and Colombia—could emerge as a strategic alternative, given the administration’s current focus on the region.

 

Rethinking Global Footprints Amid Tariff Shifts

Companies headquartered outside the U.S. are already exploring new strategies—and Latin America is becoming a hotspot. As the global trade environment shifts, now is the time to assess your global production and market-entry plans.

  • If you're not yet producing in the U.S., it may be worth considering. Being onshore can help mitigate tariff exposure and open doors to local market advantages.
  • As the new U.S. tariff structure takes shape, evaluate your global supply chain. Shifting or expanding production may unlock access to key markets.
  • Many opportunities lie outside the U.S. For example, if you're producing in Mexico or elsewhere in Latin America, consider expanding your sales reach into Brazil, Colombia, and Mexico—regions that are seeing strong interest among our clients.
  • Countries like Latin America haven't seen major changes in tariffs. Businesses headquartered or producing there may now gain a competitive edge when selling into the U.S., especially as competitors face steeper barriers.
  • The pressure created by U.S. tariffs may accelerate other trade negotiations. This could open fresh routes to international growth—particularly for companies positioned to sell outside the U.S.

 

In a time of global uncertainty, the most resilient companies will be those that stay agile, informed, and proactive. Tariffs may change, and markets may shift, but the opportunity to adapt and grow is always within reach with the right guidance.

With our firm's assistance, businesses confidently navigate international complexities by leveraging insights, infrastructure, and local expertise to respond swiftly to global changes. Whether you are assessing new markets, restructuring your operations, or preparing for future challenges, we are here to help you transform disruptions into opportunities.

Contact our team today!

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