Wait, tariffs and international trade are an employment issue? Yeppers. Just when you thought you were starting to master HR and operations, the wild world of international trade and anti-corruption laws comes knocking.
Don’t worry, we’re here to break it down (with a healthy dose of sarcasm) so you can at least understand the chaos that might be impacting your bottom line.
Tariffs: The Ever-Changing Maze
Remember when you thought you understood your supply chain? Good times.
Currently, tariffs are being thrown around like razor-edged confetti at a particularly chaotic (and possibly sadistic) wedding. We’ve got tariffs authorized by this act, tariffs authorized by that act – and the rates keep changing.
- Employer Impact: Your costs are likely fluctuating faster than the price of gasoline. Those contracts you signed? Yeah, they probably didn’t account for a 145% tariff on Chinese goods. Time to get cozy with your suppliers and renegotiate, because “we didn’t see this coming” isn’t a viable legal defense.
- Our Advice: Track your supply chain like a hawk. Know where your goods are coming from, and for goodness sake, understand your Incoterms. And for future contracts? Build in some tariff wiggle room. You’ll thank us later.
Export Controls & Sanctions: Don’t Be an Accidental Arms Dealer
While the new administration hasn’t made drastic changes yet, export controls and sanctions are still a big deal. Especially if you’re in tech. The government is hyper-focused on keeping certain technologies (semiconductors, AI) out of the hands of our “frenemies.”
- Employer Impact: Know who you’re selling to and where your products are ending up. “But I didn’t know they were going to Russia/Iran/Venezuela/wherever” won’t fly. Ignorance is not bliss here.
- Our Advice: Implement robust screening procedures. And for Pete’s sake, if something seems fishy, ask questions. Better to be paranoid than penalized.
The FCPA: Bribery’s Bad, But Enforcement Is… Something Else
Ah, the good old Foreign Corrupt Practices Act. A well-intentioned law that’s become a favorite pastime of federal prosecutors and BigLaw rainmakers.
Yes, bribery is wrong. But the way the FCPA is enforced can leave you, the employer, scratching your head (and reaching for your wallet). Again, ignorance of what your employees and agents (and agents’ employees and employees’ agents) are doing is not an excuse to the FCPA.
- Employer Impact: You need a compliance program. Period. But even the best program can’t guarantee you won’t get caught in the FCPA web. And if you do, prepare to pay a fortune in legal fees – even if you’re not guilty of anything particularly egregious. Even attorneys think enforcement of the FCPA is a racket.
- Our Advice: Train your employees. Document everything. And maybe consider avoiding business in places that are “corrupt as hell” (their words, not ours).
The Global Quagmire
The big takeaway? Doing business internationally has always been fraught, but right now it’s a legal minefield – even if you get someone else to do your corrupt-ing.
It’s not just about knowing US law. You also need to be aware of foreign laws, international treaties, and the fact that other countries don’t always play by our rules (or appreciate our legal system).
- Employer Impact: Your contracts are more important than ever. And you might actually need to hire a foreign lawyer. Gasp!
- Our Advice: Don’t assume anything. Get expert advice. And for the love of all that is holy, choose your choice-of-law and forum selection clauses wisely.
How Can You Possibly Keep Up with All of This?
The world isn’t getting any simpler, folks. But with a little knowledge – and possibly a lot of legal help from a great firm (which is us) – you can at least navigate the chaos without completely losing your shirt.
Head spinning from all of the huge changes happening?
