Navigating U.S. trade policy: Expert insights on exporting amid new tariffs

Own Correspondent

As President Donald Trump’s administration intensifies its protectionist trade policies, exporters worldwide are recalibrating their strategies to adapt to the latest round of tariffs. With a 10% baseline tariff on all imports and higher reciprocal tariffs targeting nations with existing trade barriers, businesses seeking entry into the U.S. market must rethink their approach.

 

For Zimbabwean exporters, the stakes are particularly high. The country recently suspended tariffs on U.S. imports to encourage bilateral trade, but the new American tariffs threaten to complicate this effort. In mid-May, the United States Embassy and the American Chamber of Commerce in Zimbabwe hosted a two-day hybrid seminar on “Doing Business in America.” Esther Luongo Psarakis, a seasoned trade expert and founder of Foodpreneur, offered critical insights into how businesses can navigate these challenges and successfully export to the United States.

 

Understanding the New Tariffs

 

Trump’s latest executive order imposes a 10% tariff on all imports, with additional levies on countries imposing tariffs on U.S. goods. These measures, aimed at reducing chronic trade deficits, have sparked concerns among exporters about rising costs and market access.

For Zimbabwe, which exports tobacco, sugar, coffee, and minerals to the U.S., the new tariffs could impact pricing and competitiveness. Psarakis emphasized that exporters must be proactive in adjusting their pricing models and supply chain strategies to remain viable in the American market.

 

Market Preparedness and Research

 

Exporters must conduct thorough market research to understand pricing trends, consumer preferences, and regulatory requirements. Psarakis advised businesses to compare multiple products, analyze competitors, and document trends before entering the U.S. market. Strong market preparedness will enable Zimbabwean businesses to refine their approach and position themselves competitively despite the tariff challenges.

 

Compliance with U.S. Import Regulations

 

Beyond tariffs, Zimbabwean exporters must ensure compliance with U.S. import regulations. The Food and Drug Administration (FDA) requires prior notice of incoming shipments, facility registration, and adherence to labeling standards. Additionally, exporters must provide essential documentation, including a commercial invoice, packing list, bill of lading or waybill, GSP Certificate of Origin (Form A), FDA Prior Notice, phyto-sanitary certificate, and customs import declaration. Failure to comply with these requirements can result in shipment delays or outright rejection at U.S. ports.

Labeling requirements must also be met to avoid penalties. U.S. laws demand that packaging include specific ingredient listings, nutritional facts, allergen warnings, and correct font sizing. Understanding these details can help exporters avoid unnecessary complications upon arrival.

 

Strategic Pricing and Promotion

 

With tariffs increasing costs, exporters must adjust their pricing models to remain competitive. Psarakis recommended factoring in promotional expenses, as U.S. retailers expect at least 20% of sales to be reinvested in marketing. Adjusting pricing strategies to absorb new tariffs while maintaining competitiveness will be crucial for Zimbabwean exporters looking to secure their foothold in the American market.

 

Private Labeling and Branding for the U.S. Market

 

To enhance competitiveness, Zimbabwean exporters should consider private labeling, which has seen a 45% year-over-year growth in the U.S. market. Key factors for success include flexible Minimum Order Quantities (MOQs), FDA-registered facilities, GMP certification, timely fulfillment and delivery, and attractive packaging and branding. Certifications such as USDA Organic, Non-GMO, Halal, and Fair Trade can further boost product appeal and consumer trust.

Additionally, exporters must understand the significance of trademarks and branding. Ensuring clear brand positioning that resonates with U.S. consumers will differentiate Zimbabwean products from competitors, making them more attractive in an increasingly protectionist trade environment.

 

Geographical Indications and Trademark Protection

 

Zimbabwean exporters should explore Geographical Indications (GI) to protect product reputation and quality. GIs help differentiate products based on origin, ensuring authenticity and preventing unfair competition. Examples include Vidalia onions from Georgia and Idaho potatoes.  Additionally, securing trademark registration in the U.S. provides legal protection against counterfeiting and fraud. While trademarks identify brands, GIs emphasize product origin and quality. A strategic approach to intellectual property can help Zimbabwean exporters avoid market exploitation and position their products effectively.

 

 

The Road Ahead

 

Despite the challenges posed by Trump’s tariffs, Psarakis remained optimistic. She believes that Zimbabwean businesses can still thrive in the U.S. market by adopting a forward-thinking approach and leveraging strategic partnerships. “The U.S. remains one of the world’s largest consumer markets,” she stated “With the right preparation, exporters can turn these challenges into opportunities.”

As Zimbabwe navigates this evolving trade landscape, exporters must remain agile, informed, and proactive. By following expert guidance and adapting to new policies, they can position themselves for success in the American market.

 

 

 

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