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July 9 2018

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July 9 2018 | The Journal of Commerce 25 Cool Cargoes Cover Story Special Report READY TO TAKE A FRESH APPROACH TO MANAGING YOUR SUPPLY CHAIN? The grocery industry is evolving and so are we. At Yusen Logistics, we understand the unique dynamics of food distribution and have developed solutions to help you meet your special requirements. Whether you're shipping dry goods, perishables or frozen items, we offer OTR, LTL and intermodal services, along with warehouse storage in key locations. See what's on our menu of fresh solutions. J85986 Yusen Food Ad JOC_4.625x7.375.indd 1 6/18/18 10:55 AM that it qualifi es for a reduced tari . Importers of apparel and footwear are among those that have employed these kinds of tari engineering strategies for years to arrive at the lowest "legally per- missible" duty rates, he explained. Feldman's colleague, Shelly Garg, an asso- ciate at the fi rm, said that US companies need and he was right. "We're seeing 25 percent tari s on steel imports, 10 percent tar- i s on aluminum, and we're seeing China getting bashed with 25 percent tari s on $50 billion worth of imports (into the US), and it means there is going to be re- taliation against US agriculture exports." Although Canada, Mexico, and the Euro- pean Union were initially exempt from the steel and aluminum tari s, the Trump administration withdrew that ex- emption on May 31, prompting an almost immediate backlash from three of the biggest markets for US farm goods. Canada's proposed retalia- tory tari s are targeting such goods as co ee, candy, and a range of prepared foods. Mexico said it will levy higher tari s on pork, apples, potatoes, bourbon, and cheese, among other foods, while the EU's list of proposed tari s includes US exports of sweet corn, kidney beans, peanut butter, orange juice, and other foods. It's not easy to fi gure out the Trump administration's herky-jerky trade policy, Feldman said. "Is he dangling carrots? Is he trying to rile everyone up so that countries like Ko- rea, Brazil, and Argentina come to the table and say, 'Hold on. We'll negotiate a quotas on steel and aluminum. We'll fi gure it out.' " Feldman's advice to US agriculture ex- porters is diversifi cation. "I tell companies that, just like stocks, you need to diversify your portfolio." He mentions Haiti as a prime example. "We have such opportunity with Haiti." Meanwhile, developing countries in other regions, too, from Africa to Asia to South America, also represent potential for US companies. "We're not necessarily in a trade war with them," noted Feldman, who said it's as simple as looking at the world map, doing research, and identifying countries that aren't part of the escalating trade dispute between the United States and its major trade partners. He also emphasizes the numerous resources and agencies on both the federal and state levels that exist to help US agri- culture exporters fi nd new markets and new buyers; for example, the US Commer- cial Service or Enterprise Florida. As for US companies that may be impacted by tari s on agriculture imports, Feldman said there are ways to structure those transactions to lower the duty rate. One way is by processing the raw good so to continue educating members of Congress and the Trump administration on the neg- ative impact of trade disputes on individual companies and industries at large. "Continued outreach and advocacy are very important," she said. JOC email:

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