Tariff Meaning
Is a tax imposed on imported goods and services, used by governments to regulate trade, protect domestic industries, or generate revenue. The impact of tariffs on the logistics and freight forwarding industry can be significant, influencing the cost structure and strategic planning of international shipments. For instance, a German based electronics manufacturer importing raw materials from Vietnam might face increased costs due to tariffs. The freight forwarder, working for the manufacturer, must accurately account for these tariffs when calculating the total cost of importing goods. This includes not only the cost of transportation but also the additional duties imposed at the border. The forwarder may also advise on tariff classifications and potential exemptions or explore alternative sourcing strategies to mitigate the financial impact.