Eden Prairie, Minn.-based global third-party logistics (3PL) services provider and freight forwarder C.H. Robinson announced today it has rolled out a new offering focused on helping shippers address tariff-related pressures and better control supply chain costs.
The company said its new U.S. Tariff Impact Analysis Tool provides shippers with real-time visibility related to how tariffs are impacting the bottom line, down to the SKU level for precise cost analysis. And given the ongoing shifts in trade policy, including the White House’s rollout of reciprocal tariffs, tariffs on Canada, Mexico, and China, and, now, the court-ordered pause of tariffs implemented by the U.S., C.H. Robinson said that shippers require this type of self-serve technology to accurately assess costs and optimize strategies at speed. And it added that it helps to provide clarity amidst uncertainty, which businesses are not only craving but needing.
The U.S. Tariff Impact Analysis Tool is available within the company’s global shipper platform, free of charge, to U.S. customs brokers, and the company said it enables shippers to see what types of tariffs have been assessed on their products and also analyze the financial impact as well.
“This tool makes navigating trade complexity faster and more effective,” said Mike Short, President of Global Forwarding at C.H. Robinson, in a statement. “Whether they’re looking to reroute freight, consolidate entries, or rethink supplier relationships, we give shippers the insights to act decisively and stay ahead. For example, with this tool a national retailer could identify high-volume SKUs coming from one point of origin, then quickly compare total duty spend along various alternative sources—then reroute future supply where needed.”
Key benefits of the new U.S. Tariff Impact Analysis tool cited by C.H. Robinson include:
C.H. Robinson’s Short provided additional details about the U.S. Tariff Impact Analysis Tool in this Q&A below.
LM: What drove the need for CHR to roll out this new tool? How long had it been planned or in the works?
Short: Shippers are looking for clarity amid an ongoing uncertain trade environment, and the introduction of our latest tariff tool is a direct response to the evolving complexities of global trade. Helping our 83,000 customers through the recent rapid fluctuations in tariffs, it was apparent the Tariff Impact Analysis tool was essential for shippers to understand the impact not only to their business as a whole but also to specific products, down to the SKU level.
This new tool has been in development for a couple of months, reflecting C.H. Robinson's proactive approach to addressing the needs of its customers today. This is another example of our customer-centric innovation and leveraging technology to simplify international trade, with previous innovations such as ACE Import Intelligence which aggregates all import entries, regardless of broker, and our Sourcing Analysis Tool which compares sourcing trends and helps identify potential cost-saving alternatives. These advancements have paved the way for the latest release, ensuring that shippers have access to the resources they need to stay competitive in a rapidly changing market.
LM: What are some examples of the “better data” needed by shippers to manage tariffs?
Short: If you’re importing hundreds of SKUs, identifying where you can save on tariff costs can feel like searching for a needle in a haystack. The Tariff Impact Analysis Tool puts a big spotlight on the needle, providing businesses with clarity on where to focus their efforts to achieve savings and diversification. For instance, we leveraged this new technology to show an automotive customer that nearly 70% of their duty expenses were associated with one tariff. They are able to examine details by country, specific product, etc., to determine key cost drivers and help them identify potential cost-savings strategies to reduce their duty burden, such as utilizing Foreign Trade Zones (FTZs), considering alternative sourcing locations, and examining eligibility for potential U.S. tariff exclusions.
The complexities surrounding the trade war have highlighted the necessity for tariff data presented differently. The Tariff Impact Analysis tool provides real-time updates and offers a self-serve option, presenting data in easily understandable categories rather than through a long 10-digit HTS code that most shippers don’t have memorized. As we’ve supported our customers in adapting supply chains to shifting tariff policies, this tool has been useful for helping supply chain managers feel more confident assessing and reporting tariff impact internally, especially as they are under pressure to find cost-savings. This tool transforms the conversation, simplifies the initial steps, and consequently delivers quicker results to businesses during a time when they need it most.
LM: Can you please provide a basic example of how the tool works?
Short: Through C.H. Robinson’s existing global shipper platform, customers can access a new dashboard that enables them to toggle between various filters to understand their total impact from tariffs. This includes exploring the HTS description, product code, origin country, and other relevant details. While utilizing these filters to delve deeper into the specifics, customers will continue to see the total duty and percentage of spend, so they know where to focus their attention most effectively.
For example, if a shipper observes that 80% of their duty expenditure is attributed to two tariffs, they can investigate further into which products are incurring the highest duty rates within those categories, which countries are pulling in larger tariffs, and more. This tool brings the right data into focus providing shippers with more control of their supply chain amid a complex trade environment.
LM: What are the next steps, or future plans, for this tool going forward?
Short: The tool was developed in response to our customers' needs, and its updates and future modifications will follow the same approach. Owning the technology enables us to swiftly adjust the tool to ensure it remains beneficial to shippers and addresses their current needs. The tool will be updated as tariff changes are implemented. This is particularly important given the active negotiations by the U.S. administration with various nations. For instance, with prospective new U.S. tariffs on the European Union expected to take effect in early July and several higher reciprocal tariffs resuming in July, this tool will be essential for companies to understand how these tariff changes directly impact their business costs.
