The Current Tariff Nightmare
Brian explains that while the headline tariff rate sits at 145%, steel and aluminum are only taxed at 70%—which is still catastrophically high for manufacturers importing raw materials. With four different tariffs currently in place (including holdovers from Trump's first term), the system is a labyrinth of conflicting rules that filter through customs, DHS, and the freight forwarding industry. For companies like Brian's that import steel and aluminum from Asia, these duties dramatically increase the cost of goods before they even reach production.
Country of Origin: The Tariff Code Loophole
The gang dives into how the US Customs Agency defines what it means for something to be 'made in America'—spoiler alert: it's incredibly vague. Using a 97-chapter tariff code system that classifies everything from computing machines to sex toys, importers can exploit the 'tariff shift' rule: if you change a raw material into a finished product (changing its tariff code), you've technically changed its country of origin. This is how Chinese manufacturers are shipping goods through Myanmar to avoid tariffs, though Brian notes this technically might be illegal.
How Smuggling the Supply Chain Actually Works
Dingo reveals that some Chinese importers are repackaging goods in Myanmar to exploit lower tariff classifications—but there's a catch. Steel and aluminum are stamped with their origin, making this rerouting tactic impossible for raw materials. Brian acknowledges these workarounds exist in legal gray areas, but as Dingo perfectly summarizes: 'It's 100% illegal. But they're doing it, and it's working.'
What Being a Supply Chain Professional Actually Means
Brian walks through his career progression from customs brokerage (clearing shipments and calculating duties) to import/export negotiation for major manufacturers. His current role involves coordinating raw material imports from Thailand, Vietnam, and China while managing exports of finished American-made products globally. The difference between his relatively chill days managing cross-border issues to Canada versus today's multi-tariff hellscape is night and day.
It's 100% illegal. But they're doing it, and it's working.← All episode posts