Three recent developments, among many, have now become more apparent as a result of higher U.S. tariffs. One, U.S. corporations are responding to increases in tariffs by resorting to more attempts to reclassify imported products under the Harmonized Tardiff Schedule (HTS). Two, again because of higher U.S. tariffs, China is now redirecting exports and flooding markets throughout the world (another ‘China Shock’). Three, The Supreme Court has declined to fast-track the tariff cases concerning Trump’s tariffs involving IEEPA.

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“Tariff engineering involves changing an item’s materials, altering its dimensions or compositions so that the finished products can be justified to fit in a different “harmonized system code” …. There are over 5,000 different product classification codes that U.S. customs authority uses while assessing tariffs. These tariff classifications were determined through decades of negotiations between governments and industry bodies, often varying by product category …. Companies have to tread a fine between redesigning their products and fraudulently misrepresenting product classifications …. U.S. Customs and Border Control has developed a so-called “binding ruling” system where companies can obtain official determinations on product classifications and HTS code before importing.”  “Tariff Engineering.” CNBC (June 18, 2025).

“Today, a new China shock is cascading across the globe from Indonesia to Germany to Brazil. As President Trump’s tariffs start to shut China out of the United States, its biggest market, Chinese factories are sending their toys, cars and shoes to other countries at a pace that is reshaping economies and geopolitics. This year so far, China’s trade surplus with the world is nearly $500 billion — a more than 40 percent increase from the same period last year …. By diverting the flow of its stuff to Southeast Asia, Latin America and Europe, China has already eased the economic effect of a plunge in demand from the United States.” “China’s Exports Surge to World.” New York Times (June 18, 2025).

“The Supreme Court on Friday declined to fast-track a legal challenge to President Donald Trump’s tariffs, rejecting a motion to expedite the case and delaying consideration despite pressure from affected companies.” “Supreme Court – No Fast Track for Tariffs.” MSN (June 20, 2025).