World must see tariffs as volatile and variable

The US has yet to abandon tariff warfare.

- 

A shipment arriving before or after a tariff change can make a huge difference

It is now entering a period in which each tariff level carries additional costs, such as time, procedure, and sufficient political consent to proceed. On the day of the ruling, many CEOs spoke of relief, but such feeling lasted just minutes. Then internal inboxes began to fill.

Companies' import divisions asked about new duties, while sales teams questioned whether prices should be adjusted. Lawyers inquired about the status of refund dossiers. CFOs examined cash flow, asking how long the company could endure if repayments were delayed. In the “war room”, the first question is rarely whether the court has been right or wrong. It is about where the goods are: at sea, at port, in warehouses, or already on shelves.

Tariffs are imposed at the moment of importation. Timing often matters more than argument. A shipment arriving before or after a change in duty can make a greater difference than a quarter’s worth of cost savings.