Insight
The Era of Tariffs: Remaining Nimble as a US Importer and Exporter
May 2026
How shifting US Tariff policy is reshaping decision-making for importers and exporters.
A new era of uncertainty in U.S trade policy.
Beginning with his inaugural address on January 20, 2025, United States President Donald J. Trump shared with the world his administration’s intention to “tariff and tax foreign countries to enrich our citizens.” Since this shot across the bow, the US’ tariff policy has been a moving target marked by uncertainty, rapid change and shifting enforcement. Leaving the purely political considerations aside, the constitutionality of President Trump’s authority to impose tariffs under the International Emergency Economic Powers Act of 1977 is presently being considered by the United States Supreme Court, which found that such tariffs require congressional approval. While this decision represents a significant shift, it has not eliminated uncertainty, as alternative tariff measures and new policy approaches continue to be explored. Volumes will inevitably be written about these dynamics; however, the focus of this article will be on the confusion and uncertainty of the United States’ tariff policy since February 2025 and the challenges and opportunities it has presented to three of our clients over the past year.
These three sample clients operate in distinct industries – disposable medical devices (an importer), a food wholesaler (an importer), and a technology equipment reseller (an exporter). Each of these clients has faced different challenges and opportunities, but all have had to pivot and adjust their operational decision-making rapidly to ensure their margins are not destroyed by these policies. Given the countries (trading partners) involved, the products bought and sold, and each business’s unique sales velocity, each company’s experience has been very different.
Case study: Medical device importer under tariff pressures
The first client is a US subsidiary of a Japanese manufacturer of a high volume, disposable medical device regulated by the United States Food and Drug Administration. Tariff rates on Japanese imports have shifted repeatedly, creating significant planning uncertainty. This Client has two primary product lines with one private label line that has thin margins, and one specialty line with wider margins. Fortunately, in this client’s case, the product shelf-life granted them an opportunity to “wait and see” initially, before concluding to pass on the tariff cost to the purchasers of the private label line, while absorbing most of the tariff expense on the higher margin line.
Case study: Food wholesaler facing perishable import challenges
The second client is located in the northeastern United States and is a perishable and non-perishable food wholesaler. A substantial portion of their dairy products are imported from Canada, which since February 2025 has been a primary focus of US based import tariffs: dairy products have been one of the most targeted industries. Given the inherent perishable nature of these goods and the challenge of alternate suppliers at scale on short notice, wholesalers had no choice but to either absorb the tariffs to maintain customer relationships or pass the tariffs onto customers and risk losing accounts. This client has labored to employ a balanced approach, which has led to both a reduction in top-line revenue, and a compression in gross margins. Thankfully, with seasoned operators at the helm, the business should weather the storm well and find a more competitive landscape waiting for them when the new market equilibrium is attained.
Case study: Tech reseller navigating export tariffs
The third client is a recycler and reseller of computer hard drives, chips and peripherals. The business acquires, refurbishes and certifies IT equipment from large corporates before reselling it across developing markets. As an exporter, this company has been affected by reciprocal tariffs imposed on US exporters by countries that have had US import tariffs imposed upon them. However, because of strong demand for its products and a diverse range of sales opportunities, this company has been able to increase its sales and its margins.
Market destabilisation across industries
The common thread across these companies has been market destabilisation and the impact it has on sales and profitability. All three companies sell very elastic goods, yet each company’s economic position and sales velocity result in markedly different outcomes in the wake of the US tariffs. As the renowned economist Milton Friedman suggested, barring intervention, markets move toward a stable centre, and incorrect policy (or any policy change) causes markets to behave erratically. This maxim has certainly held true within the dynamics of international trade as a result of the United States’ current policies as illustrated by these three clients of our firm.
Looking ahead and remaining nimble
At present, uncertainty around the direction and durability of US tariff policy continues to leave many businesses in a holding pattern. Recent legal developments have clarified certain aspects of presidential authority, but have also introduced new questions around how tariffs will be implemented going forward.
Until a more stable framework emerges, importers and exporters will need to remain agile, adjusting their strategies as policy continues to evolve.
About the author
Mark Alaimo
Boston, USA
Mark joined LCW CPAs in 2019, where he serves as Managing Partner. He works closely with the firm's shareholders to guide strategic direction and ensure consistent execution, while also overseeing a portfolio of clients.
Mark is passionate about helping business owners and individuals achieve their financial goals, drawing on his experience in private client taxation, family office advisory, and wealth management.