Let's Get Surety #136 Tariffs: Trends and Risk Strategies in the Customs Bonds Arena
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May 13, 2025 
Join Michelle Lucaccioni, VP at Tokio Marine HCC, and John Sheppard, EVP at C.A. Shea & Company, as they tackle the evolving landscape of customs bonds amidst rising tariffs. They explore how fluctuating tariffs create demands for better bonding strategies and the challenges of compliance in a complex market. With insights on proactive risk management and the importance of building strong relationships, this conversation equips surety professionals with the tools to navigate today's unpredictable trade environment.
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Tariffs Create Volatile Bonding Environment
- Tariffs cause a volatile and rapidly changing customs bonding environment.
- Companies must anticipate their bonding needs proactively to avoid surprises and insufficiencies.
Bond Calculations Lag New Tariffs
- Customs bonds are calculated based on duty, taxes, and fees paid in the past 12 months.
- Tariff increases immediately raise bond requirements, causing upcoming shortages and growing risks.
Proactively Manage Bond Planning
- Engage surety professionals early to plan for increased bond requirements and cash flow challenges.
- Anticipate large bond increases and coordinate with banking partners to manage financial strain.