Introduction
Spare a thought for the poor folks charged with keeping up with the latest policy developments in global trade management. Indeed, in the brief interval between the drafting of this article and its publication, even more rules, regulations, and policies are almost certain to have evolved further. Many of these changes are the result of decisions by our current mercurial leadership in Washington, along with responses from affected nations around the globe. But regardless of your political leanings, one thing is certain: the global trade landscape is changing dramatically and rapidly, with no end in sight, and with profound consequences for global companies, whether on the importing or exporting side of things.
Just a few examples, because there isn’t space to list them all
We’re only a few weeks into the new year, and already developments on the global trade front are coming at us too quickly for the news cycle or industry leaders to process them all.
- The suspension of the de minimis exemption—(August 29, 2025) is an immense departure from historical precedent in which international packages below $800 in value were exempted from duties or taxes and enjoyed expedited clearance into the country. Now, ALL entering packages are eligible for duty and tax assessment, vastly expanding the burden on trade officials to identify such things as country of origin, classification, and other information required to accurately assess the new duties.
- New tariffs on European trade partners enacted as a result of the current dispute over annexation of Greenland. Phase 1 of this change (10% tariff) takes effect on February 1 of this year (assuming nothing changes on the negotiating front) and Phase 2 (25%) goes into effect on June 1. Stay tuned, though, as this one is changing pretty much daily.
- The new Taiwan semiconductor deal, signed on January 15th, obliges the island nation to invest at least $250Bn in US semiconductor, AI, and energy manufacturing, in return for which the country will enjoy a 15% cap on exports to the US, with 0% tariffs for certain critical items, e.g., pharmaceuticals and aircraft components.
- The six-year review of the USMCA agreement (US, Mexico, Canada) is in full swing with a new agreement expected by July 1st. Areas of specific focus include energy and automobiles (both complete and parts).
Simplifying the process for global trade managers
Despite all the sturm und drang currently surrounding global trade rules, regulations, and policies, a few things have remained as immutable as ever, most notably the need to move goods across borders with a minimum of delay and red tape. That’s where artificial intelligence (AI) enters the picture. AI is uniquely equipped to automate many of the day-to-day functions that trade officials are called upon to accomplish, including:
- Analyzing Multi-layer Bills of Materials (BOMs) to identify shipment details that determine applicable duty rates.
- Determining Harmonized Tariff Schedule (HTS) classification codes, necessary to ensure that products are taxed and tracked correctly.
- Identifying Country of Origin in order to assign proper tariff rates, a particularly challenging task given multi-tier supply chains and frequent supplier and locale changes.
- Identifying special program eligibility like free-trade agreements that can save shippers money, minimizing delivered costs while ensuring regulatory compliance.
- Assigning tariff codes and duty rates in an environment of constantly changing rates, conditions, and compliance requirements.
- Responding to audit requests that emerge from brokers or regulators. Such requests require agility and the ability to respond with a minimum of research and delay.
- Managing exceptions to gain maximum benefits while minimizing additional information needed from engineers, shippers, or suppliers.
Autonomy streamlines trade processes and ensures compliance
Avathon Autonomy for Global Trade Management is an AI-powered solution that tackles all of these challenges, while simultaneously keeping up with the very latest rule changes and policy updates. By automating trade compliance, the Autonomy Platform ensures not only that your organization’s shipping processes are compliant and efficient, but it also frees up your staff to focus on the highest-value activities like exception management and high-value transactions. Platform capabilities include:
- Harmonized Tariff Schedule (HTS) assignment
- Country of Origin determination
- Accurate tariff/duty rate identification
- Special/exceptional item classification
- Identification of special program eligibility, e.g., free trade agreements
- Tracking of regulatory updates and rule changes
- Identification of Restricted Party Screening (RPS) and Partner Government Agency (PGA) holds, avoiding regulatory fines and shipment delays.
Avathon Autonomy autonomously and seamlessly handles all these situations with greater speed and accuracy than present technology + manual approaches. This enables trade officers to stay current in regulatory compliance while streamlining cross-border transactions and minimizing delays and potential regulatory fines and penalties.
Conclusion—Autonomy streamlines trade and minimizes costs
AI has, in recent years, evolved from a “useful tool” to a “digital partner” in Global Trade Management. With the current volatility in U.S. trade policy—specifically the frequent shifts in tariff rates and the emergence of new trade deals like the Taiwan Semiconductor agreement—AI is now the primary capability businesses need to stay compliant and profitable. Avathon Autonomy for Global Trade Management delivers the functionality trade professionals need to ensure compliance and minimize operating costs.
To learn more about Global Trade Management and how Avathon’s Autonomy Platform helps companies navigate all the fast-moving changes, visit our site.
