This episode explores the complexities of tariffs, global shipping, and strategies for navigating international trade, particularly in light of recent trade dynamics involving China. Burak Yolga, CEO of Forceget, shares insights from his recent trip to China, highlighting China's advancements in branding and its sophisticated approach to exports, including both legitimate and less ethical methods. The discussion begins with an explanation of HTS codes and how they are used to classify products for tariff purposes, before diving into strategies for avoiding or delaying tariffs, such as separating product components or utilizing bonded warehouses. Against the backdrop of rising tariffs, some Chinese factories are misleadingly labeling products as made in other countries like Vietnam or Malaysia to evade tariffs, a practice Yolga warns against due to its illegality and potential repercussions for importers. More significantly, the conversation addresses the impact of tariffs on US businesses, noting that a substantial percentage have paused shipments from China due to increased costs, while also examining the potential benefits of the US government's move to cancel the de minimis threshold to level the playing field. The episode concludes with advice for businesses to explore alternative marketplaces, manage cash flow strategically, and seek consultancy to navigate the evolving landscape of global trade.
