CONTRIBUTED PHOTO — Kelly Klinefelter, owner of Navguardian in Albion and export expert, helps clients with exporting products to other countries. Since the volatile tariff situation started, she focused on learning about what was happening to best help her clients.

(EDITOR’S NOTE: This is the second of a two-part series localizing the impact of tariffs.)

ALBION — Since the national tariff situation began with President Donald Trump placing them on most imports coming into the country, other nations have followed suit.

China placed a 125 percent tariff on all American exports, potentially impacting the Iowa economy. According to the Office of the United States Trade Representative, Iowa exported $925 million of goods to China in 2024.

However, the country was not the largest recipient of Iowan goods. The country which received $5 billion of Iowa goods in 2024 was Canada. After tariffs were placed on Canada, the northern neighbor responded with tariffs on more than 1,000 American goods, including eggs, milk and chicken.

As countries respond to United States tariffs, each has different rules and regulations and different tariff levels for various products. It is a complex system.

One Marshall County business, Navguardian in Albion, is an export consulting business. Owner Kelly Klinefelter helps U.S. exporters sell items to any country where trade is permitted.

“I assist companies primarily with exports and export compliance,” she said. “Tariffs on imports can have an impact on exports as well, because they can increase the cost of inputs, they can cause retaliatory tariffs, and the situation can cause uncertainty while negotiations continue.”

The uncertainty of the potential cost to the foreign customer makes it more difficult to quote and sell products, Klinefelter said. The tariff situation has made it possible for everyone to see the uncertainty unfold in the volatility of the stock market.

Upon learning about the tariff situation, her reaction was to learn more so she could better assist where Navguardian is needed.

“I knew it would have an impact on my clients,” Klinefelter said.

A common misconception people have, she said, is foreign governments pay tariffs that the United States imposes.

“The reality is tariffs are taxes on imports paid by the importer, which is usually a U.S. business,” Klinefelter said. “The cost is often passed on to consumers in the form of higher prices. If all proposed tariffs and retaliatory tariffs were to take effect, it will certainly impact us all, not just importers or exporters. Keep in mind this situation is not finalized, and there are actions we can take to protect our interests in the meantime in the ways we can control.”

With Navguardian being in operation since 2015, Klinefelter has put her prior experience to help businesses navigate through the complexities of exporting. Through combining her love for entrepreneurship, international trade and helping others succeed, she said she has been able to realize her dream.

“The entrepreneurial spirit was instilled in me from a young age, and I’ve always had a strong interest in international business,” she said. “That interest grew deeper while earning my degree at UNI, where I became fascinated with the complexities of global trade.”

During Klinefelter’s time working for a freight forwarder, she discovered a passion for helping others navigate export compliance — a field she said, that often feels overwhelming to many.

Tariffs are not new for Klinefelter as they are something she dealt with in 2018, but not to the extent of the current situation and the wide range of trade partners involved. As a result of past experience, she does have suggestions on the best way to move forward.

First, businesses need to stay informed and be proactive with a plan.

“This is a constantly evolving situation where there will be more negotiations taking place,” Klinefelter said. “I’m confident there will be even more developments from now to when this article will go to print. Don’t underestimate the power of a plan that can help with flexibility in the changing environment.”

For importers and exporters, she suggested maintaining clear channels of communication with customers and business partners. There should also be a clear understanding of terms in contracts and of Incoterms (International Commercial Terms). Sales, operations and shipping staff will especially benefit from understanding when tariffs may be included on a sale, along with other considerations.

Klinefelter suggested businesses become familiar with related HS (harmonized system) codes for imports and exports and ensure the classifications are correct. Those codes are 10 digits and will be standardized up to a six digit level for countries which adhere to the World Customs Organization’s General Rules of Interpretation when classifying goods. HS codes can differ for the same item in various countries, depending on how each country classifies.

“Think of HS codes as a language,” she said. “We are, in general, speaking the same language up to six digits, and maybe it is a different dialect up to the 10 digit level depending on the region. Knowing your related HS codes will help you be aware of current and changing tariffs, as well as allowing you to check for any applicable exemptions.”

If exemptions are not available, Klinefelter suggested companies negotiate costs with their partners, look at diversifying supply chains or optimize production in other areas to make up for the additional costs.

“Creative solutions could make the difference,” she said.

Some proactive plans Klinefelter had for consumers included buying domestic alternatives, planning purchases before additional tariffs take effect and budgeting or adjusting spending habits to help soften the blow of additional costs.

“We live in a global economy,” Klinefelter said. “Wide spread tariffs impact all of us because we all live in the same global ecosystem. We are interconnected and need to work together to maintain a global economy where we can all thrive.”

CONTACT INFO:

For businesses that need help navigating the complexities of exporting, Klinefelter with Navguardian can be contacted at info@navguardian.com.

Contact Lana Bradstream at 641-753-6611 ext. 210 or lbradstream@timesrepublican.com.