What Is Tariff Engineering?
Tariff engineering is the deliberate design or modification of a product to reduce the amount of duty (import tax) it incurs when crossing international borders. It’s not about skirting the law—it’s about working within it. Companies legally adjust the materials, assembly, or configurations of their products to qualify for lower duty classifications under the Harmonized Tariff Schedule (HTS).
Imagine if your team could redesign a product component in a way that shifts its classification from a 25% tariff category to one with just 5%. That’s real savings—sometimes in the millions, thus becoming critical for companies to know and understand. For engineers, especially those working in product development, supply chain, or manufacturing, this kind of strategic thinking is becoming just as critical as cost and quality.
Why It Matters Now: The U.S.-China Trade Landscape
Tariff engineering isn’t a new concept, but it’s taken on new urgency in today’s unpredictable trade environment—especially between the U.S. and China. Since 2018, tariffs on Chinese goods have fluctuated dramatically. In some sectors, particularly electronics, automotive, and consumer products, duties have increased as much as 25% under Section 301 tariffs.
For companies sourcing materials, components, or finished goods from China, this volatility introduces risk. Engineering teams can help mitigate that risk by building tariff considerations into the design and sourcing process—ensuring that product specs not only meet performance standards, but also align with favorable customs classifications.
Real-World Example: Smartwatches
A well-known case involves smartwatches produced by one of the magnificent seven, Apple. Originally, they were subject to high tariffs as part of telecommunications equipment. But companies like Apple successfully argued that the watches were more akin to “wearable computing devices,” leading to a reclassification with much lower tariffs. Now imagine a team of engineers proactively tweaking features and materials to help the product land in the right category before it even ships. That’s tariff engineering in action.
Why Black and Minority Engineers Should Care
As Black and minority professionals in STEM, we’re already bringing unique insights and perspectives into technical spaces. Tariff engineering offers another way to amplify our impact—connecting the dots between engineering, policy, trade, and economics.
If you’re a mechanical engineer designing product enclosures, a materials scientist evaluating substitutes, or an industrial engineer optimizing supply chains, understanding tariff engineering can set you apart as a strategic contributor. It gives you a seat at the table in high-stakes conversations about globalization, cost control, and risk mitigation.
Getting Started: What Engineers Can Do
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Learn the HTS Basics – Familiarize yourself with the U.S. Harmonized Tariff Schedule (HTSUS). Understanding how goods are classified is step one.
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Collaborate Cross-Functionally – Partner with legal, logistics, and trade compliance teams. Tariff engineering is a team sport.
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Prototype for Classification – Consider how a product’s features, materials, or uses affect its tariff classification.
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Monitor Trade Trends – Stay informed about geopolitical developments that impact trade. The tariffs in effect today might not be tomorrow.
Watch: “Tariff Engineering Explained”
📺 In this concise video, Deanna Clark, Managing Attorney at Clark-Esposito Law Firm, provides a clear explanation of tariff engineering and its practical applications. She discusses how modifying a product’s design or composition at the manufacturing level can lead to a different tariff classification, potentially resulting in lower import duties. The video includes real-world examples, such as adjustments to cosmetic bags, illustrating how strategic changes can lead to significant cost savings. This resource is particularly valuable for professionals in product development, supply chain management, and manufacturing who are seeking to understand how engineering decisions can impact trade compliance and costs.
Final Thoughts
Tariff engineering is where law meets logistics meets design. For Black and minority engineers, it’s an opportunity to lead in a niche but increasingly vital space. In a world where global supply chains are complex and trade tensions are real, those who understand how to design smart—and strategically—will be in high demand.
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