Maximising global trade advantage: Smart strategies to reduce the impact of tariffs

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What are the best strategies for gaining a competitive edge in international trade while managing duties and tariffs efficiently? 

For globally active businesses, this is no longer a theoretical question, it’s a critical operational challenge. With increased cost pressures, complex trade regulations, and shifting global markets, companies need to reduce duties and tariffs without compromising compliance. 

The answer lies in data-driven automation, accurate and up-to-date tariff data, and leveraging Free Trade Agreements (FTAs), all areas where Descartes delivers proven results. Rather than relying on manual processes or reactive decision-making, companies can implement smart digital strategies that optimise trade flows, minimise costs, and stay ahead of regulatory requirements. 

In this blog, we explore how businesses can turn duty management into a competitive advantage by using FTAs, automation, and smart trade practices to reduce costs and optimise international operations. 

Even when businesses qualify for preferential treatment through trade agreements, they often still overpay on duties. Why? Common barriers include: 

• Lack of visibility into applicable FTAs 
• Inefficient documentation and compliance tracking 
• Uncertainty around rules of origin and recordkeeping 
• Manual and product classification errors that disqualify goods from preferential treatment 

Without a centralised, automated solution to manage duties, compliance, and agreement eligibility, companies not only lose out on cost savings, but they also expose themselves to compliance risks and operational inefficiencies. 

Descartes suite of global trade and customs compliance solutions is designed to help businesses navigate international trade with greater accuracy, speed, and cost control. Here's how: 

Descartes artificial intelligence (AI)-assisted product classification and duty determination solution helps ease the complexities of classification with an up-to-date database of duties, tariffs, customs regulations, explanatory notes, trade agreements, rulings and compliance verifications from 175+ countries. This reduces the risk of misclassification, ensures duties are calculated accurately, and helps avoid costly penalties. 

Benefit: Companies consistently pay the lowest legally permitted duties, no more, no less. 

Descartes automatically identifies which Free Trade Agreements you may be eligible for by analysing product classifications, origin data, and trade lanes, helping you uncover duty savings opportunities faster and with greater confidence.

Benefit: Uncover savings opportunities that manual processes would miss, across hundreds of trade lanes and partner countries. 

Businesses with accurate, up-to-date global trade data and content to streamline tariff classification, duty calculation, and international compliance. Covering over 175 countries, it centralises regulatory information such as harmonized system / harmonized tariff schedule (HS/HTS) codes, tariff schedules, trade rulings, and rules of origin.

Our solutions integrate directly with enterprise resource planning (ERP) and global trade management platforms, enabling companies to automate classification, improve landed cost visibility, and ensure consistent compliance across their supply chains. By combining comprehensive trade content with automation tools, we help reduce manual errors, speed up customs clearance, and unlock opportunities for duty savings under applicable trade agreements. 

Benefit: Stay compliant while reducing the administrative burden on internal teams. 

Descartes connects over 13,000 companies across more than 160 countries, providing a secure platform for sharing trade documentation, customs data, and shipping information in real time. 

Benefit: Enhanced visibility and coordination across your global supply chain partners, critical for smooth cross-border movement. 

Descartes solutions help businesses identify inefficiencies in trade operations, such as incorrect classifications, underutilised FTAs, or inconsistent application of duty rates. These tools enable companies to analyse trade flows, reduce costs, and strengthen compliance with international trade regulations.  

Benefit: Make informed sourcing, routing, and compliance decisions based on real data, not guesswork. 

Businesses that implement Descartes global trade and compliance solutions report tangible improvements: 

• Faster customs clearance and reduced import costs through duty deferment and foreign trade zone (FTZ) automation (e.g. Automated Logistics Systems) Learn more
  
  
• ~20% fewer order revisions due to better communication and data accuracy across trade partners (e.g. Nynas AB) Learn more
  
  
• Improved classification accuracy and compliance using Descartes duty and tariff database covering 175+ countries (e.g. Parker Meggitt) Learn more
  
  
• Operational cost savings and enhanced shipment workflows with Descartes Transportation Management (e.g. IDS) Learn more
  
  

These outcomes illustrate how Descartes helps businesses lower costs, reduce risks, and trade more efficiently across borders. 

While strategies like FTAs leverage, tariff review, and compliance audits are essential, the real differentiator is how well you execute them, and execution is where software solutions like Descartes come in. 

Trying to manage duties, tariffs, and regulatory changes manually is no longer sustainable. Automated systems not only reduce human error but also free up your teams to focus on high-value tasks like supply chain planning and market expansion. 

The most effective way to gain an edge in international trade today is to combine smart strategy with powerful technology. 

With Descartes global trade and customs solutions, businesses can: 

• Reduce import/export costs through automated tariff optimisation 
• Maximise Free Trade Agreement benefits 
• Ensure seamless compliance across borders 
• Operate with real-time visibility and control 

In a world where every percentage points matters, Descartes transforms trade complexity into a strategic advantage, empowering businesses to thrive globally with confidence. 

Descartes empowers businesses with the technology and intelligence needed to turn global trade complexity into a competitive edge. By staying informed, investing in automation, and strategically using FTAs, businesses can reduce costs, increase profitability, and thrive in global markets.