Customs Experts Discuss the Immediate Impact of New U.S. Tariffs on SMBs
The rules of global trade are shifting fast. SMB importers, especially those importing into the US, are feeling the pressure firsthand: tariffs are rising, enforcement is tightening, and uncertainty is growing.
To help make sense of what’s happening and how businesses can respond, we sat down with Lenny Feldman, Managing Partner at Sandler, Travis & Rosenberg, and one of the country’s most trusted customs attorneys, and Carmit Glik, CEO of Ship4wd and a supply chain expert with decades of experience building and leading global freight operations.
We’ve put together a written summary of their recorded interview, highlighting the most important parts of their discussion; including, how quickly policy and enforcement will take effect, where importers are most vulnerable, and what real, practical steps SMBs can begin to take to stay compliant, flexible, and in control of their customs process.
Important Note: This interview has been edited for clarity, readability, and flow. Access the full interview at the end of the post.
Allison Brooks:
Let’s start with where we are right now. We’re seeing tariffs on China go through the roof, a 10% baseline tariff on all countries and most other goods, and a pause, which is soon coming to an end, on reciprocal tariffs. Lenny, you’ve seen a lot in your career, how does this moment compare?
Lenny Feldman:
This is unprecedented. I’ve been doing this for more than 30 years and I’ve never seen anything like it. I mean, I woke up the day the reciprocal tariffs came into effect and said, “Is this a dream?” Or maybe a nightmare?
What we’re seeing now is layer after layer; first, the MFN base duty rates, then the Section 301 tariffs on China, then the fentanyl-related IEEPA tariffs, and now this new wave of reciprocal tariffs. And it’s not just the rate, it’s the speed of implementation. Tariffs used to have a lead time, now, they can apply overnight.
AB:
And for importers, there’s really not much time to adjust?
LF:
No, not anymore. In the past, you might have 30, 60, even 90 days to prepare. Today, it can be literally overnight. Take April 9th, companies woke up to new tariffs with no chance to adjust. And if you didn’t qualify under the in-transit rule? Too bad. You were just… stuck.
AB:
Carmit, you’re working directly with SMB importers every day. What are you hearing from them?
Carmit Glik:
There’s a lot of confusion. Some of our customers have paused shipping entirely, just trying to wait it out. Others are speeding up shipments, hoping to get ahead of the next change.
But overall, there’s distress. I mean, we’re talking about cash flow, companies don’t know what they’ll owe when their containers land. Some are asking, “Should I increase my bond? Should I stop shipments? Should I reroute?” It’s very emotional, and it’s changing day by day.
AB:
Lenny, can you walk us through what’s happening now on the enforcement side? Are importers already seeing an uptick in reviews or penalties?
LF:
Yes, and it’s just beginning. I was at the National Customs Brokers & Forwarders Association conference recently, and we heard directly from the acting commissioner. His message was about national security, economic security, and protecting U.S. manufacturing. Enforcement is front and center.
AB:
What are some workaround ideas SMBs are considering, but could come back to bite them?
LF:
Some are adjusting prices between related parties to lower their declared value, which is risky if not done properly. Others are using shell companies or trying to split invoices to hide real costs. Customs sees this all the time, and they’re watching. These things might feel like clever workarounds, but they’re high risk.
AB:
Carmit, for businesses that can’t make major structural changes, what’s something practical they can do now to adapt?
CG:
Start with supplier diversification. Even if you can’t shift everything out of China, look at Southeast Asia, India, anywhere you can spread your sourcing. It’s not easy, but it helps create flexibility.
Also, work closely with partners who can support you, whether that’s on cash flow terms, faster quotes, or better customs visibility. SMBs don’t have to do this alone.
AB:
Lenny, strategies like tariff engineering and bonded warehouses. Can you give us some examples that may actually work for lowering duties?
LF:
Sure. For example, if you import jewelry with a diamond already set, you’re paying a 6.5% tariff. But if you import the stone and the setting separately, the diamond enters duty-free.
Another example: turbine generators. If shipped together, the duty might be 2.5%. But imported separately, the components could be classified under provisions that carry a lower rate or none at all.
Bonded warehouses are another smart tool, they let you hold goods until a tariff risk passes. We saw this save companies a lot during the back-and-forth on Mexico and Canada.
AB:
Carmit, are you seeing customers shift strategies in real time?
CG:
Yes; some started exploring alternative countries before these tariffs even dropped, expecting changes. But many were caught off guard when countries like Vietnam and Thailand were included.
Now, there’s more movement. Companies are flying to visit new suppliers. They’re not waiting anymore. And we’re seeing a lot of interest in sourcing tools and logistics support that help them move fast.
AB:
Lenny, you mentioned “First Sale Valuation” earlier. Can you explain how that works for importers?
LF:
It’s a powerful but underused tool. Say you have a Chinese factory selling to a Hong Kong intermediary, and then that intermediary sells to you in the U.S. First Sale allows you to use the lower price between the factory and intermediary as the declared customs value, if you can document it.
We actually won the original court case that confirmed its legality. For businesses stuck in a China-heavy model, this can create real savings.
AB:
What would each of you say is the one piece of advice you want SMB importers to take from this conversation?
CG:
Resilience. This is about being ready. Don’t wait for clarity that may never come. Use the tools out there, find good partners, and stay agile.
LF:
Stay informed. And when you are informed, be creative, within the law. There are ways to adapt and lower risk if you’re willing to do the work.
For the full interview click on the banner below:
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