When expanding into global markets, businesses often focus on product demand and logistics—but the real gatekeepers are tariffs and export controls. Understanding both is essential to protecting your company from penalties, delays, and reputational risk.
What Are Tariffs?
Tariffs are taxes imposed on imported or exported goods. Governments use them to protect domestic industries, manage trade relationships, and generate revenue.
For exporters, tariffs can:
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Increase the total cost of goods for foreign buyers
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Influence pricing and profitability
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Impact competitiveness in key markets
What Are Export Controls?
Export controls are government regulations that restrict the export of certain goods, technologies, and services for reasons related to national security, foreign policy, and trade protection.
In the U.S., key regulations include:
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ITAR (International Traffic in Arms Regulations) – Controls defense-related articles and services
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EAR (Export Administration Regulations) – Covers commercial and dual-use items
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OFAC Sanctions – Prohibits trade with certain individuals, entities, or countries
Violating export controls can result in:
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Severe civil or criminal penalties
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Loss of export privileges
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Reputational damage
Why You Need to Understand Both
While tariffs affect the cost of doing business globally, export controls impact your legal ability to do so. Together, they shape how—and where—you can sell, ship, and scale.
What Businesses Should Do:
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Classify your goods properly under HTS codes and export control numbers
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Stay current with country-specific tariffs and trade agreements
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Screen all parties involved in export transactions
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Determine if licenses are required before shipping
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Train your team on compliance basics
The Bottom Line
Global growth isn’t just about opportunity—it’s about risk management. By understanding both tariffs and export controls, your business can expand internationally with confidence and control.
At Maribod Global, we help space, defense, and emerging tech companies navigate these regulations without the overwhelm.
Does your company need help with Export Compliance, tariffs, or export controls in the age of digital transformation? Contact Maribod Global today!
