Mitigating Costs and Risks of Section 232 Tariffs

Much has been made of the damage the Section 232 actions may have on the economy and individual firms, but little has been said about how to mitigate costs and manage risks from the tariffs. Donald Bly, Associate Partner at Applied Value, LLC, a New York management consulting and investment group, offers some strategies on how to address President Trump’s recent tariff announcement.

The exemption of Canada and Mexico from the tariffs will help “release some of the supply and demand pressure that the tariffs will generate in the U.S. domestic market and lead to slightly less drastic lead time elongation and price increases,“ Bly said. The exemptions also will give firms the opportunity to continue trade within the North American value chain.