August 6, 2025—Top Stories:
Navigating Tariff Mitigation: What AAEI’s Importers Are Doing—and What’s Still Missing
It’s no secret that tariff mitigation strategies are top of mind for U.S. businesses involved in importing and exporting. Shifting trade policies, rising duties, and ongoing compliance uncertainty have taken their toll on the trade community. In this high-stakes environment, every company is looking for ways to reduce costs while maintaining compliance and global competitiveness.
To better understand how businesses are responding, AAEI reached out to 100 importers and asked: What tariff mitigation strategies are being used at your company, and how effective are they?
The results shed light on what’s working—and where gaps remain. The most used and most effective strategy cited was supply chain management and the use of moving sourcing and/or manufacturing to reduce tariff exposure.
Ranking of Top Tariff Mitigation Strategies by Effectiveness
- Supply Chain Management – Outside of the U.S.
- Pricing Management
- Leveraging AI to Help Mitigate Tariff Impacts
The least used strategies cited were receiving supplier concessions, moving sourcing and/or manufacturing to the U.S., and leveraging Foreign Trade Zones and Bonded Warehouses.
Stay Connected. Stay Informed.
AAEI hosts Trade Focus Committee meetings on Thursdays at 2:00 p.m. EDT, where members exchange real-time insights on updates, changes, and challenges in trade.
EU Pauses Retaliatory Tariffs on U.S. Goods for Six Months
The European Union announced it was pausing a plan to impose retaliatory tariffs on U.S. goods as it continued trade negotiations with the Trump administration. In a statement, the European Commission spokesperson for trade said the planned countermeasures against the U.S., which were set to take effect Thursday, would now be suspended for six months. The Trump Administration announced a deal with the EU imposing tariffs of 15% on most goods entering the U.S. from Europe and requiring the EU to make huge investments in US energy products, averting a trade war between the two of the world’s largest economies.
Trump Threatens Additional Tariffs on India
The U.S. will impose another 25% tariff on India beginning Aug. 27th to address India’s imports of Russian oil, said in an executive order issued Aug. 6. The tariffs will be on top of the 25% reciprocal tariff that takes effect for India Aug. 7. Goods subject to exiting or future Section 232 tariffs wont face the additional tariff, nor will goods already exempt from reciprocal tariffs. An in-transit exemption applies for goods loaded onto a vessel at the port of loading and in transit on the final mode of transit prior to 12:01 a.m. ET on Aug. 27 and entered before Sept. 17th.
Appeals Judges Hear IEEPA Case
The U.S. Court of Appeals for the Federal Circuit on July 31 heard oral argument in the lead case on the legality of tariffs imposed under the International Emergency Economic Powers Act (IEEPA). The 11 judges peppered counsel for the government and the parties challenging the tariffs, which include five importers and 12 U.S. states, with questions about whether the statute authorizes tariffs at all; whether there are limits to that tariff authority, should it exist; and whether the major questions or non-delegation doctrines strip IEEPA of its ability to convey tariff authority.
Senate Democrats Hold Press Conference on the Administration’s Tariffs
Senate Minority Leader Chuck Schumer (D-NY) and other Democrats spoke to reporters about the effects of the Trump administration’s trade policy and tariffs amid a looming August 1 deadline set by President Trump for a trade deal with certain nations or reciprocal tariffs.
Senate Democratic News Conference on Trump Administration Trade Tariffs | Video | C-SPAN.org
U.S. Agriculture Exports to China Down 50%
U.S. trade data released by the Commerce Department showed the United States exported just $5.5 billion worth of farm goods to China in the first six months of the year, compared to $11.8 billion at the same point last year.
The more than 50 percent drop in one of U.S. farmers’ largest export markets came as the Trump Administration applied tariffs on Chinse goods at 125 percent during the first months of the year, and China responded by imposing equally high tariffs on American goods.
Despite the sharp drop in sales to China, total U.S. agricultural exports were $85.5 billion in the first half of 2025, down just 2 percent from the same period last year. That suggests farmers are making up some of their lost sales to China in other markets.
China’s Export Footprint Rapidly Expands in Developing Countries So Far in 2025
Despite continued trade tensions with the United States, Chinese exports rose to an all-time high in the first half of 2025 as Chinese goods diverted to other markets. Between January and June, China exported $1.8 trillion in goods to the world, up 5.9 percent year-on-year. As shown in Figure X, China’s exports gained ground in virtually every region outside of North America.
Though China’s export sector demonstrated strength across sectors, export growth was particularly driven by its electronics, machinery, and transportation manufacturing sectors, which accounted for nearly three-quarters of the growth in China’s global exports.
Industry Insight: Understanding the ROI of Trade Compliance Automation
Todd R. Smith, Founder and CEO of KYG Trade, shares a two-part article series based on his# AAEI2025 Conference presentation, exploring the value of automation and how to calculate ROI. Whether you’re making the case for AI investment or improving current processes, these insights are a must-read.
