Additional US tariffs have significantly increased procedural costs for customs brokers and importers, with the entire industry struggling to respond.
Increasingly Complex Customs Procedures
The complex mechanisms of additional tariffs are making customs procedures extremely difficult:
1. Reciprocal Tariff Complexity
- Tariffs apply only to non-US origin portions when over 20% of import value is US-origin
- Single products require declarations under multiple HTS codes
2. Section 232 Tariff Challenges (Steel/Aluminum)
- 50% additional tariff on steel and aluminum derivative products
- Complex mechanism applying only to declared import value of contained steel/aluminum
Voices from the Field
Construction Equipment Manufacturer Case
"The 50% Section 232 tariff applies to the iron content portion of import prices, but the definition of iron is unclear, requiring us to make reasonable determinations ourselves. We calculate based on purchased iron weight, but accurate declarations are extremely difficult" (US-based Japanese manufacturer, August 28, 2025)
Auto Parts Importer's Struggle
"When importing parts and machinery, tariff rates and basis differ for each component material, requiring accurate calculations based on composition ratios and clear customer explanations. However, it's difficult to pass these increased administrative costs to sales prices" (Japanese trading company representative, August 22, 2025)
Customs Brokers' Cash Flow Crisis
Serious situation for Japanese customs brokers operating nationwide:
- Tariff advance payment burden increased 10-15 times
- Cash flow pressure from typical one-month advance period
- Increased collection risk from customers
Major Challenges
- Calculation Complexity: Extremely difficult to calculate tariffs by component materials
- Definitional Ambiguity: Unclear definitions for content like iron
- Cost Transfer Difficulty: Cannot pass administrative costs to prices
- Cash Flow Deterioration: Surge in customs brokers' advance burden
- Time Shortage: Insufficient time for proper processing
Future Outlook
As the situation surrounding additional tariffs continues to evolve, how trading partners negotiate and coordinate the burden of massive incidental costs beyond tariffs has become a critical issue. Companies must urgently consider response strategies.