Tariffs

What Are Tariffs?

Tariffs are taxes imposed by a government on imported or exported goods. They are typically used to protect domestic industries, raise revenue, or influence trade relationships. Tariffs directly affect the cost of goods crossing borders and, by extension, impact everything from supply chain planning to final retail prices.

Tariffs have become a key force reshaping global trade routes and logistics flows. From the Trump tariffs on China to the latest 2025 tariff proposals, shifting policies have disrupted container volumes, port operations, and customs clearance. Logistics teams, traders, and enforcement agencies must monitor tariff developments in real time to stay compliant and resilient.

Key Takeaway

Tariffs are government-imposed taxes on international trade that influence global supply chains, shipping costs, and compliance requirements, especially during volatile policy shifts like the Trump-era tariff waves.

How Do Tariffs Affect Maritime Container Logistics?

For freight forwarders, BCOs, and logistics managers, tariffs influence day-to-day operations, from routing decisions to customs planning. Tariff shifts drive changes in cargo routing, customs prioritization, and carrier selection. In some cases, unexpected tariff hikes can trigger major rerouting or even canceled shipments.

Key impacts of tariffs on logistics:

• Routing changes: shippers may avoid certain ports or countries to bypass tariffs.
• Cost spikes: sudden tariff hikes increase landed costs, reducing margin.
• Customs complexity: additional paperwork and inspections create bottlenecks.
• Port congestion: new tariffs often drive last-minute cargo surges or holds.

In April 2025, container volumes between the U.S. and China decreased by 30-40% following the escalation of tariffs, illustrating how tariff volatility can trigger widespread disruptions across global supply chains.

How do tariffs influence supply chain planning and cargo routing?

When tariffs rise on a given route, forwarders may shift to alternate trade lanes, transshipment hubs, or origin ports to avoid cost increases. Planners also prioritize tariff-exempt cargo or use free trade agreements to minimize duties. These shifts often lead to increased documentation demands, port congestion, and volatility in shipping schedules. 

How do sudden tariff changes create delays at ports and customs?

Unplanned tariff changes often lead to a backlog of shipments needing reclassification, new documentation, or reassessment. Customs authorities may pause cargo until updated tariff schedules are confirmed, while forwarders scramble to produce accurate paperwork. This chain reaction causes clearance delays and increases exposure to costly demurrage fees for cargo stuck at port.

How can freight forwarders prepare for potential tariff changes?

To stay ahead of tariff shifts, freight forwarders should monitor policy developments, build flexibility into routing and sourcing strategies, and digitize their documentation workflows. AI tools can also help teams adapt quickly in a constantly changing tariff environment. For example, once new Trump tariffs are announced, solutions like Windward can help flag impacted cargo and recommend alternative routes or ports based on projected congestion, giving teams a valuable head start before delays and costs escalate.

How Do Tariffs Impact Traders, Shippers, and Insurers?

Tariffs shape the economics of global trade. For commodity traders, charterers, and shipping companies, tariff changes alter profit margins, trading routes, and counterparty risk. Insurers also assess tariff exposure when underwriting cargo.

Tariff exposure risk factors:

• Cargo origin/destination in tariff-affected countries.
• Trade in tariff-targeted commodities (e.g., steel, semiconductors).
• Frequent route changes complicate documentation.
• Reliance on bilateral or preferential trade agreements.

How do tariffs impact global shipping costs?

Tariffs can increase total landed cost, even if base freight rates remain stable. A 25% tariff on a container of electronics from China to the U.S. dramatically shifts profitability. Shippers may reduce volumes, seek alternative sourcing, or pass costs to consumers. This affects fleet utilization and rates.

Why do targets and shippers need to track changing tariffs?

A missed tariff update can invalidate a deal, lead to fines, or disrupt financing. Traders must price deals accurately, while shippers need to ensure documentation (like the Certificate of Origin) aligns with tariff rules. Ongoing shifts in Trump tariffs 2025 make active monitoring critical.

How can maritime intelligence help reduce risks linked to tariff disputes?

Maritime intelligence platforms combine trade route analytics, port call data, and behavioral insights to detect anomalies that may signal tariff evasion, like cargo being rerouted through low-tariff countries. These systems help traders maintain transparency and respond quickly to regulatory shifts.

Why Do Tariffs Matter for Governments and Customs?

Tariffs serve as both economic tools and enforcement levers. Governments use them to protect industries, influence trade partners, or advance geopolitical goals. Customs and tax authorities must ensure compliance, especially during policy shifts or trade disputes.

Government use cases:

• Enforce tariffs at borders and ports.
• Monitor for tariff evasion and misclassification.
• Support economic sanctions through selective tariffs.
• Adjust tariffs to respond to trade imbalances.

Why do governments impose tariffs on imports and exports?

Governments use tariffs to protect domestic industries, respond to unfair trade practices, or generate revenue. For example, during a Trump tariff cycle, duties on Chinese goods were used as leverage in trade negotiations, directly impacting global manufacturing and shipping.

How do customs agencies enforce tariff rules?

Customs officials compare tariff codes on shipping documents with product descriptions, country of origin, and cargo behavior. Discrepancies trigger audits or holds. Agencies also rely on technology, including X-ray scans and AI, to flag potential misclassification or evasion.

How can tariffs be used as part of sanctions or national security policy?

Tariffs can work in tandem with sanctions, targeting goods from specific countries or industries. A rise in tariffs on Russia-bound goods, for example, may aim to reduce economic dependency or limit dual-use technologies, expanding beyond economics into defense strategy.

Tariff Enforcement in the U.S.: Why Document Validation Is a Critical Gap

Effective tariff enforcement hinges on validating that trade documentation aligns with actual cargo movements and vessel behavior. 

Between FY2001-2014, the U.S. Government Accountability Office found that over $2.3 billion in antidumping and countervailing duties (AD/CVD) went uncollected, most of it unrecoverable after the goods cleared customs. By mid-2025, U.S. Customs and Border Protection (CBP) had collected $136 billion in tariffs and announced plans to expand frontline enforcement. Verifying trade flows delivers measurable returns, from increased revenue to stronger policy enforcement.

How evasion happens:

• Falsified Certificates of Origin to claim tariff exemptions.
• Undervalued invoices and misclassified HS codes.
• Transshipment to third countries to mask the true origin.
• Behavioral deception, like AIS spoofing and false port calls.

OFAC’s 2024 maritime guidance called for verifying documents against vessel behavior, including dark activity and flag hopping, as part of a risk-based compliance approach.

Windward’s AI-Automated Document Validation solution helps agencies enforce tariffs in real time by:

• Verifying port calls and vessel behavior.
• Resolving beneficial ownership and flag history.
• Tracking end-to-end container movement.
• Aligning with ACE and ATS workflows for immediate escalation.
• Generating regulator-ready case files with traceable audit logs.

Agencies can start with targeted pilots focused on high-risk goods and lanes. Over time, document-behavior validation can be built into national enforcement systems, helping CBP, ICE-HSI, and others catch more fraud while clearing compliant trade faster.

Raising tariffs without the means to verify origin leaves enforcement exposed. Agencies need behavioral intelligence to close gaps and ensure accountability.

Tariff Impact Across the Maritime Ecosystem

How Does AI & Data Help Manage Tariff Risk?

Tariff regimes are complex and ever-changing. Maritime technology platforms, like Windward, use AI to detect risk signals in customs data, predict tariff exposure, and monitor cargo for misclassification or evasion. This is especially useful when dealing with layered documentation or route changes.

Core AI applications:

• Analyze customs documents for accuracy and risk.
• Detect tariff fraud via route and behavior patterns.
• Forecast exposure to upcoming tariff changes.
• Flag cargo impacted by Trump tariffs on China or Canada.

How can AI be used to forecast the impact of tariffs on trade flows?

By analyzing historical trade data, vessel routes, commodity trends, and real-time legislation, AI models can predict how new tariffs will shift volumes. For example, if Trump tariffs in 2025 target EV batteries, AI can forecast reduced flow through relevant East Asian ports.

Why is accurate trade and customs data important for tariff compliance?

Incorrect or incomplete data can result in overpaid duties, fines, or delays. Customs declarations, Certificates of Origin (COO), and shipping manifests must match. Data fusion from multiple sources ensures clarity and reduces the risk of misclassification or suspected fraud. Solutions like Windward’s Document Validation help automate this process by cross-checking documentation against real vessel behavior, making it easier to spot inconsistencies before they cause operational or regulatory issues. 

How does data fusion help uncover fraud in tariff declarations?

Platforms that integrate AIS tracking, port call history, and trade documentation can reveal inconsistencies, like a vessel claiming to load in Mexico to avoid tariffs, while the behavior shows a direct load in China. Tools like Windward’s Document Validation use this fused data to surface anomalies automatically, helping customs and compliance teams catch errors or fraud before they escalate.