Dear valued clients and partners,
There’s never a dull moment in trade—and 2025 is already proving that to be true. With new tariff actions rolling out, shifting global alliances, and talks of reshoring picking up speed, importers and exporters alike are navigating through some real changes.
Just this quarter, we’ve seen the U.S. introduce additional tariffs on goods from China, which prompted swift responses from Beijing. Headlines only tell part of the story. The ripple effects of these changes are showing up in the day-to-day decisions businesses are now forced to make.
At ITC Diligence International, we're right there in the trenches with our clients. Whether it’s reviewing classification codes, evaluating FTZ opportunities, or helping adjust logistics plans, our goal is to help you stay one step ahead—especially when things feel like they’re shifting under your feet.
This edition of The Diligence Report covers key updates on tariffs, highlights one of our newest team members (welcome, Delas!), and shares insight into the FTZ landscape and broader trade trends. We believe this edition is packed with valuable content and we hope it helps you in your business.
Thanks, as always, for your trust in our team. We’re here when you need us.
Warm regards,
David Harlow
President & CEO
ITC Diligence International
The Latest in Tariff Developments:
Implications for Your Business
Recent Tariff Actions:
February 1, 2025: The U.S. imposed a 10% baseline tariff on all imports, citing concerns over trade imbalances and unfair practices.
March 4, 2025: The U.S. increased tariffs on Chinese imports to 20%. In response, China imposed tariffs of 15% on U.S. agricultural products and 10% on other goods.
April 2, 2025: President Trump announced a two-tier tariff structure, including a 10% baseline tariff on all imports (excluding Canada and Mexico) and additional country-specific "reciprocal" tariffs based on perceived unfair trade practices.
April 4, 2025: China announced a 34% tariff on all U.S. imports, effective April 10, in retaliation to U.S. tariff increases.
April 9, 2025: The U.S. escalated tariffs on Chinese goods to 145%. China responded by raising tariffs on U.S. products to 125%.
April 11, 2025: The U.S. announced that the reciprocal tariffs would be paused for 90 days for all countries except China, allowing time for negotiations.
April 25, 2025: China exempted certain U.S. goods, including semiconductors and pharmaceuticals, from its 125% tariffs, signaling a potential easing of trade tensions.
Impact on Businesses:
With no signs of slowing down, these escalating tariffs have introduced complexities for companies across various sectors, including technology, agriculture, and manufacturing, who are engaged in U.S.-China trade. This is leading to increased costs, supply chain disruptions, and heightened compliance requirements.
Strategies for Mitigation:
To get ahead, businesses need to consider:
Diversifying Supply Chains: Exploring alternative sourcing options to reduce reliance on any single market.
Leveraging Foreign Trade Zones (FTZs): Utilizing FTZs to defer, reduce, or eliminate certain duties, thereby enhancing cost efficiency.
Staying Informed: Regularly monitoring trade policy developments to anticipate and respond to changes proactively.
How ITC Diligence Can Assist:
At ITC Diligence International, we specialize in guiding businesses through the complexities of international trade compliance.
Our services include:
FTZ Consulting: Assisting in the establishment and management of Foreign Trade Zones to optimize duty savings.
Customs Compliance: Ensuring adherence to evolving trade regulations to mitigate risks.
Supply Chain Strategy: Developing resilient supply chain solutions tailored to the current trade climate.
Understanding and adapting to these tariff changes is crucial for maintaining competitiveness in the global market. Our team is dedicated to providing the expertise and support necessary to navigate these challenges effectively.
Bend, Don’t Break: Strategies for Supply Chain Resilience
With tariffs rising, global regulations shifting, and logistics networks constantly adapting, supply chain resilience is no longer a luxury—it’s a requirement. The current U.S.–China trade tensions have only magnified how quickly conditions can change, leaving unprepared importers scrambling.
At ITC Diligence, we work with businesses across industries to help strengthen the backbone of their trade operations. If your supply chain relies heavily on high-risk regions, single-source suppliers, or outdated compliance processes, now is the time to re-evaluate.
Here are some foundational ways importers can build a more adaptable supply chain this year:
- Diversify Sourcing Without Compromising Quality
Don’t wait for tariffs or geopolitical risk to force your hand. Begin identifying secondary suppliers in alternative markets. Consider regions with established trade agreements or lower tariff exposure. Diversification keeps existing partnerships in place while introducing flexibility into the supply chain, giving businesses more room to adapt when conditions change.
- Reassess Logistics Strategies
Port congestion, routing delays, and increased inspections are still common pain points. Look for opportunities to reroute freight, split shipments, or consolidate through inland hubs and FTZs. Working closely with your logistics providers and customs brokers can reveal more efficient paths forward.
- Use FTZs to Create Breathing Room
Foreign Trade Zones (FTZs) give importers more control. By staging goods in a U.S. FTZ, duties and tariffs are deferred until the product is entered for consumption—and not paid at all if re-exported. This offers flexibility for warehousing, repackaging, and distribution while avoiding immediate tariff exposure.
- Build Compliance Into the Foundation
Customs compliance is often reactive—but it doesn’t have to be. Classification reviews, duty mitigation analysis, and proactive monitoring of trade developments should be part of your operational planning. With the right structure in place, your supply chain can adapt without missing a beat.
Disruptions are unpredictable, but a resilient supply chain is built to absorb impact and keep goods moving regardless of the cause. Talk to us today about building flexibility into your trade operations before the next disruption hits.
Employee Spotlight: Delas McCarroll
Senior Manager, Compliance & Brokerage Operations
We’re excited to shine the spotlight on Delas McCarroll, a seasoned professional who recently joined ITC Diligence International as Senior Manager of Compliance & Brokerage Operations. With over 30 years of experience in logistics and customs brokerage—including 17 years in management—Delas brings a depth of expertise that’s both impressive and invaluable.
His career has taken him through key roles at industry leaders such as Fritz Companies, Panalpina, Norman Kreiger, and Yusen Logistics. Most recently, he served in a dual capacity overseeing Customs Compliance and Operations at Marubeni Transport Services. When an opportunity at ITC presented itself, the timing and role aligned perfectly with his professional goals.
What drives Delas most in this new chapter is the opportunity to help shape our next phase of growth. He’s energized by the chance to contribute directly to ITC’s evolving vision and to bring his leadership experience into a space that values innovation and collaboration.
Since joining, Delas has been struck by the supportive and forward-thinking environment. He describes the team as welcoming and engaged, and credits the open culture for making his transition into the company a smooth one.
His strengths lie in building efficient, scalable systems, particularly in customs brokerage and operational processes. Over the years, Delas has led both small and large teams, implemented standardized operating procedures, and developed training programs that improve performance and ensure compliance. His hands-on leadership style and strategic mindset make him a natural fit for ITC.
Outside of the office, Delas channels his technical skills into two unique hobbies: building custom computers and racing radio-controlled cars. Both activities require precision, creativity, and problem-solving—traits that clearly carry over into his professional approach.
We’re thrilled to have Delas as part of the ITC team and look forward to the impact he’ll make across our clients and internal operations alike.
Fun Fact
Bouncy Balls and Bumpy Markets
Bouncy balls may seem like simple toys, but they offer a surprisingly accurate way to describe how unpredictable global trade can be.
In 2018, U.S. imports of inflatable balls (yes, including bouncy balls) totaled around $368 million. By 2025, that number has rolled down to just over $300 million, reflecting a drop of nearly 20% over seven years.
Why the dip?
Shifting tariffs, rising logistics costs, and global sourcing challenges are all part of the picture.
Most of these imports still come from China, followed by Vietnam and Thailand—countries frequently caught in the crossfire of trade tensions and tariff hikes. So just like a bouncy ball, this market has been up, down, and back again, echoing the unpredictability that many importers face across industries.
Client Spotlight: SSI Logistics – Built for Adaptability
This quarter, we're proud to spotlight SSI Logistics. Based in Lee’s Summit, Missouri, SSI has been delivering tailored logistics solutions since 2001. As a family-owned company, SSI offers a full suite of services including domestic and international transportation, warehousing, distribution, and 3PL support. Their ability to scale with client needs, combined with a hands-on approach, makes them a trusted name in the logistics space.
With a focus on operational transparency and cost-efficiency, SSI’s freight consulting team works closely with clients to streamline carrier contracts, improve shipment performance, and reduce spend across the board.
Partnering with ITC Diligence
ITC Diligence International works alongside SSI to support their compliance strategy, ensure alignment with trade regulations, and manage duty exposure. Our collaboration focuses on building proactive import/export processes that allow SSI to stay responsive in a rapidly shifting trade environment.
Delivering Strategic Value to Clients
Together, SSI and ITC help businesses move goods with confidence—combining logistics precision with compliance expertise. By integrating smart logistics with regulatory insight, this partnership supports clients as they grow, adapt, and expand into new markets.
Strengthening Supply Chains with FTZs in 2025
Foreign Trade Zones (FTZs) continue to be one of the most powerful tools available to U.S. importers looking to reduce costs, increase flexibility, and navigate trade volatility with confidence. With tariffs back in the spotlight and supply chains under constant pressure, understanding how to properly leverage an FTZ has never been more important.
At a high level, FTZs allow companies to defer duties on imported goods until they enter U.S. commerce—or avoid them entirely if goods are re-exported. FTZs also offer operational advantages, including duty reduction (via inverted tariffs), weekly entry savings, and streamlined customs processes.
2025 has brought some key changes that FTZ users need to be aware of.
Policy Shift: PF Status Requirements and Reciprocal Tariffs
While Privileged Foreign (PF) status has long been part of the FTZ framework, new reciprocal tariff rules introduced in April 2025 have changed how and when it must be applied. Under these rules, goods subject to reciprocal tariffs must now enter an FTZ in PF status—locking in their duty rate at the time of admission.
This change limits the ability to take advantage of traditional FTZ benefits like inverted tariff relief, particularly for importers bringing in components from countries like China. For example, if you’re importing materials for U.S.-based manufacturing, the new requirement may prevent you from applying the lower finished-product duty rate.
These developments reinforce the importance of working closely with FTZ advisors to assess product classifications, evaluate PF vs. NPF treatment, and adapt your strategy in light of the new rules.
How ITC Diligence Helps
At ITC, we assist companies across industries in launching, operating, and optimizing FTZs. That includes:
- FTZ activation and approval strategy
- Navigating PF vs. NPF (Non-Privileged Foreign) status decisions
- Ongoing compliance support and document management
- Customs coordination and audit preparation
- Duty impact analysis and supply chain planning
Our role doesn’t end once an FTZ is approved. We continue supporting operations, compliance, and strategic growth long after activation.
To help FTZ users stay informed, ITC Diligence International offers the FTZ Academy—a free resource hub filled with timely, easy-to-read articles that break down FTZ procedures and compliance insights. Whether you're new to FTZs or need a refresher on a specific process, the FTZ Academy offers quick answers to common questions.
Logistics & Trade Industry Updates – Spring 2025
As we progress through 2025, the logistics and trade sectors are experiencing significant transformations driven by technological advancements, policy shifts, and evolving consumer expectations.
Here's a roundup of key developments:
1. AI Revolutionizes Freight Logistics
Artificial intelligence is making substantial inroads into freight logistics. Companies like Uber Freight are leveraging AI to optimize truck routing, reducing inefficiencies and minimizing empty miles. By employing machine learning algorithms that consider traffic, weather, and road conditions, these platforms enhance operational efficiency and reduce carbon emissions.Since its 2023 launch, Uber Freight has managed over $20 billion in freight, serving numerous Fortune 500 companies.
2. Blockchain Enhances Supply Chain Transparency
Blockchain technology is gaining traction as a tool for improving supply chain transparency and traceability. A recent survey indicates that 57% of organizations believe blockchain will impact supply chain transparency within the next three years. By providing an immutable ledger of transactions, blockchain enables companies to track the provenance of goods, verify authenticity, and ensure compliance with regulatory standards. This technology is particularly beneficial in industries where verifying the origin and handling of products is critical, such as pharmaceuticals, food, and luxury goods.
3. Emphasis on Supply Chain Resilience
Recent studies indicate that 83% of business leaders now consider supply chain resilience to be as critical as cybersecurity. Companies are investing in advanced analytics, digital twins, and AI to proactively manage risks and ensure continuity in operations.
4. Embracing Sustainability and Circular Economy Practices
In 2025, businesses are increasingly integrating sustainability and circular economy principles into their supply chain strategies. This shift aims to minimize environmental impact, maximize resource efficiency, and create long-term economic benefits. Companies are adopting practices such as using renewable energy in warehouses, optimizing logistics to reduce carbon emissions, and incorporating recyclable materials into their products. These initiatives not only contribute to environmental preservation but also enhance brand reputation and meet evolving consumer demands for sustainable practices.
5. Rising Geopolitical Tensions Impact Supply Chains
Geopolitical tensions and protectionist trade policies are increasing the risk of supply chain disruptions. Organizations are urged to reassess their supply chain strategies, focusing on diversification and risk mitigation to navigate the complex global trade environment.
Staying informed and adaptable is crucial as trade continues to evolve. At ITC Diligence International, we're committed to providing insights and support to help you navigate these changes effectively.
