Tariffs: Navigating Uncertainty & Mitigating Enforcement Risk
Show notes
Mike & Brent jump into tariffs to focus on practical strategies to navigate these uncertain times and to mitigate the risk of future enforcement actions. Specifically, they discuss what longer-term geopolitical trends help businesses to plot a strategy despite being whipsawed by tariff news each day (01:57), a recent and helpful Foreign Affairs article, by Emily Kilcrease and Geoffrey Gertz of the Center for a New American Security (03:21), the recent book "Chokepoints: American Power in the Age of Economic Warfare" by Edward Fishman and his description of the "impossible triad" between economic interdependence, economic security, and geopolitical competition (04:21), relevant historical background on the rise of China after the Second World War and its current oversupply problem (04:54), how severe pressures on businesses in both the U.S. and China will create white collar compliance risks today and enforcement risks tomorrow (07:42), customs evasion enforcement risk under the U.S. False Claim Act (FCA) and the FCA's definition of "knowledge" (08:06), the importance of dynamic assessments of customs evasion risks (11:25), potential fines and penalties from U.S. Customs & Border Protection (CBP) and U.S. Department of Justice (DOJ) enforcement (12:54), a deeper dive into the FCA's "knowledge" standard and its similarities to the "high probability" standard under the U.S. Export Administration Regulations (EAR) (16:14), and practical strategies for companies trying to manage these risks (17:50). Then they conclude with another installment, back by increasing popular demand, of Brent Carlson's "Managing-Up" segment (20:39).
Geoffrey Gertz & Emily Kilcrease, "A World Safe for Prosperity How America Can Foster Economic Security," Foreign Affairs Magazine: https://www.cnas.org/publications/commentary/a-world-safe-for-prosperity
Edward Fishman, "Chokepoints: American Power in the Age of Economic Warfare": https://a.co/d/duy9b5t
More about Mike: https://www.linkedin.com/in/mhuneke/
More about Brent: https://www.linkedin.com/in/brent-carlson-41ba692/
Our "Fresh Looks" series: www.hugheshubbard.com/fresh-looks