Supply Chains in Flux
The Impact of Recent Trade Actions on Trade
Acknowledgments and Gratitude
We would first like to thank David Forgue from Barnes, Richardson & Colburn LLP for delivering an insightful presentation on the state of supply chains in today’s evolving trade landscape. Additionally, we thank Rob Liss from MAKA Logistics for generously providing refreshments, as they have done for this and previous Supply Chain Speaker Series events.
Opening Discussion: The Impact of Tariffs on Supply Chains
The evening began with a discussion on how new tariffs impact supply chains and how businesses can prepare for potential shifts in global sourcing. David explained how tariffs influence supply chain decisions, often requiring companies to move production to different regions in response to changing trade policies. One key takeaway from the discussion was that many components used in manufacturing—especially in the automotive industry—require highly specialized materials.
For instance, while the U.S. has steel manufacturers, they do not necessarily produce all types of steel needed for specific car parts. In some cases, companies must import specialty steel that no domestic manufacturer can supply, making tariffs a critical factor in decision-making.
One key takeaway from the discussion was that many components used in manufacturing—especially in the automotive industry—require highly specialized materials. For instance, while the U.S. has steel manufacturers, they do not necessarily produce all types of steel needed for specific car parts. In some cases, companies must import specialty steel that no domestic manufacturer can supply, making tariffs a critical factor in decision-making.
Goods and Services Tax (GST) vs. Sales Tax
We also explored the difference between Goods and Services Tax (GST) and sales tax:
- GST is a value-added tax (VAT) applied at multiple stages of production. It typically allows businesses to claim credits for tax paid on inputs.
- Sales tax is a one-time tax applied only at the point of sale to the final consumer.
Q&A
The event featured engaging discussions, particularly during the Q&A session, where audience members asked how companies can manage uncertainty amid continued tariff fluctuations. David emphasized that while flexibility is difficult, it remains the best strategy for navigating trade shifts.
One fascinating insight was the risk of moving supply chains into a single country. If too many companies relocate to the same place, that nation could become a target for retaliatory tariffs.
We also learned about supply chain roles like tariff engineers, who analyze tariff structures backward to determine how to minimize costs legally. A fascinating example was shared about Chuck Taylor sneakers. When imported with a fuzzy sole, they are classified as slippers (which face lower tariffs). Once worn minimally, the fuzziness wears off, and you have a traditional sole.
Video Explanations
For a visual explanation of how tariff engineering works with Chuck Taylor sneakers, check out this video:
For more insight on how companies design products to navigate tariff regulations, watch this video:
Finally, David emphasized the importance of compliance—those who attempt to evade trade laws risk severe consequences, including potential legal action and jail time.
This discussion provided valuable insights into the complex world of supply chains and trade policies, leaving attendees with much to consider as they navigate an ever-changing global market.
TL;DR
- David Forgue discussed how tariffs are reshaping global supply chains.
- Specialized materials are often unavailable domestically, making imports necessary.
- Companies should remain flexible and avoid concentrating supply chains in one country.
- Tariff engineers help businesses navigate trade laws efficiently.
- Compliance is critical—violating trade laws can lead to severe legal consequences.
- The discussion provided key insights into adapting to the evolving trade landscape.
Event info
Date: March 12, 2025
Welcome & Networking: 4:30-5:00 p.m.
Speaker Presentation: 5:00-6:00 p.m.
Happy Hour: 6:00-7:00 p.m.
Location: Schreiber Center, 16 E. Pearson Street, Room 908
Featured Speaker
David Forgue
David Forgue is a Partner at Barnes, Richardson & Colburn, LLP, specializing in international trade law. He advises importers and exporters on compliance, classification, valuation, antidumping duties, and regulatory requirements from agencies like the EPA and FDA. With a practical approach, he helps businesses navigate trade challenges while maintaining efficiency. A frequent speaker on international trade topics, David serves on the Board of Directors of the International Trade Association of Greater Chicago. He earned his J.D. from the University of Illinois College of Law and has been practicing since 1996.
The Impact of Recent Trade Actions on Trade
Acknowledgments and Gratitude
We would first like to thank David Forgue from Barnes, Richardson & Colburn LLP for delivering an insightful presentation on the state of supply chains in today’s evolving trade landscape. Additionally, we thank Rob Liss from MAKA Logistics for generously providing refreshments, as they have done for this and previous Supply Chain Speaker Series events.
Opening Discussion: The Impact of Tariffs on Supply Chains
The evening began with a discussion on how new tariffs impact supply chains and how businesses can prepare for potential shifts in global sourcing. David explained how tariffs influence supply chain decisions, often requiring companies to move production to different regions in response to changing trade policies. One key takeaway from the discussion was that many components used in manufacturing—especially in the automotive industry—require highly specialized materials.
For instance, while the U.S. has steel manufacturers, they do not necessarily produce all types of steel needed for specific car parts. In some cases, companies must import specialty steel that no domestic manufacturer can supply, making tariffs a critical factor in decision-making.
One key takeaway from the discussion was that many components used in manufacturing—especially in the automotive industry—require highly specialized materials. For instance, while the U.S. has steel manufacturers, they do not necessarily produce all types of steel needed for specific car parts. In some cases, companies must import specialty steel that no domestic manufacturer can supply, making tariffs a critical factor in decision-making.
Goods and Services Tax (GST) vs. Sales Tax
We also explored the difference between Goods and Services Tax (GST) and sales tax:
- GST is a value-added tax (VAT) applied at multiple stages of production. It typically allows businesses to claim credits for tax paid on inputs.
- Sales tax is a one-time tax applied only at the point of sale to the final consumer.
Q&A
The event featured engaging discussions, particularly during the Q&A session, where audience members asked how companies can manage uncertainty amid continued tariff fluctuations. David emphasized that while flexibility is difficult, it remains the best strategy for navigating trade shifts.
One fascinating insight was the risk of moving supply chains into a single country. If too many companies relocate to the same place, that nation could become a target for retaliatory tariffs.
We also learned about supply chain roles like tariff engineers, who analyze tariff structures backward to determine how to minimize costs legally. A fascinating example was shared about Chuck Taylor sneakers. When imported with a fuzzy sole, they are classified as slippers (which face lower tariffs). Once worn minimally, the fuzziness wears off, and you have a traditional sole.
Video Explanations
For a visual explanation of how tariff engineering works with Chuck Taylor sneakers, check out this video:
For more insight on how companies design products to navigate tariff regulations, watch this video:
Finally, David emphasized the importance of compliance—those who attempt to evade trade laws risk severe consequences, including potential legal action and jail time.
This discussion provided valuable insights into the complex world of supply chains and trade policies, leaving attendees with much to consider as they navigate an ever-changing global market.
TL;DR
- David Forgue discussed how tariffs are reshaping global supply chains.
- Specialized materials are often unavailable domestically, making imports necessary.
- Companies should remain flexible and avoid concentrating supply chains in one country.
- Tariff engineers help businesses navigate trade laws efficiently.
- Compliance is critical—violating trade laws can lead to severe legal consequences.
- The discussion provided key insights into adapting to the evolving trade landscape.
Event info
Date: March 12, 2025
Welcome & Networking: 4:30-5:00 p.m.
Speaker Presentation: 5:00-6:00 p.m.
Happy Hour: 6:00-7:00 p.m.
Location: Schreiber Center, 16 E. Pearson Street, Room 908