Recent changes in U.S. trade policy have South Carolina businesses feeling the effects of rising tariffs. According to a WTLX report from August 7, 2025, the average tariff rate on imported goods has jumped from just 2% at the start of the year to nearly 17% in the present. This dramatic increase is sending ripples through every level of the supply chain—and ultimately to the consumer.
As Joseph Von Nessen, a research economist at the University of South Carolina, explained:
“A tariff is nothing more than a tax on imported goods… [and] in the short run, that can potentially lead to price increases on the goods affected.”
So, what does this mean for businesses across the Palmetto State? And how can sound legal strategies help you navigate the uncertainty?
Industries That are Feeling the Pressure
South Carolina has a globally connected economy. From major automotive manufacturers to small retail shops, the impact of tariffs is far-reaching.
Automotive Manufacturing: Our state’s automotive industry relies heavily on imported parts. Tariffs on components are driving up costs, leading to production disruptions—such as temporary shutdowns—and even the risk of layoffs.
Electronics & Heavy Machinery: Manufacturers dependent on imported steel, aluminum, and electronic components face rising input costs, reducing profit margins.
Agriculture: Farmers are grappling with higher costs for imported fertilizers and machinery, while retaliatory tariffs hurt crop exports.
Retail & Consumer Goods: Tariffs on apparel, personal care products, and electronics force retailers to either absorb costs or pass them to customers.
As inventories turn over, South Carolinians may soon see higher prices on everything from batteries and clothing to vehicles and personal care products.
Why This Matters for Business Planning
Tariffs introduce uncertainty—and uncertainty complicates everything from pricing strategies to supply chain management. This causes businesses to ask:
Who absorbs the cost? Manufacturers, wholesalers, or consumers?
How do we handle long-term contracts when tariff rates change overnight?
What protections exist if a supplier fails to deliver due to trade disruptions?
One critical consideration is contract language—specifically, determining the “Importer of Record.” Under U.S. Customs law, the importer of record is responsible for paying tariffs and ensuring compliance. If your contracts don’t clearly define this role, disputes can arise.
Legal experts recommend including tariff reimbursement clauses and reviewing your Incoterms (the rules defining buyer and seller responsibilities in international shipping) to allocate risk properly. Without this clarity, businesses could be blindsided by unexpected liabilities.
How The Floyd Law Firm Can Help Your Business
At The Floyd Law Firm PC, we understand how legal planning can make the difference between stability and costly disputes in times of economic uncertainty. Our Business & Corporate Law team works closely with companies across South Carolina to:
Review and Draft Contracts: Ensure clarity on tariff-related responsibilities, including importer of record provisions, reimbursement strategies, and Incoterms.
Understand Regulatory Compliance: Help businesses comply with U.S. Customs and international trade laws to avoid penalties and shipment delays.
Mitigate Risk in Supply Chain Agreements: Identify vulnerabilities and build safeguards into your contracts and operational practices.
Resolve Disputes Efficiently: Whether through litigation, mediation, or arbitration, we protect your interests in tariff-related disputes and other business conflicts.
Our attorneys have experience in business litigation, contract negotiations, and strategic planning. We aim to give businesses the advantages of in-house counsel without the overhead—helping you stay focused on growth while we handle the legal complexities.
Tariffs aren’t just a trade issue—they’re a bottom-line issue. If your company imports raw materials, exports goods, or operates in any sector tied to global supply chains, now is the time to review your contracts and risk management strategies. Contact The Floyd Law Firm PC to discuss how our team can safeguard your business against the uncertainties of tariffs and international trade disruptions as it applies to contractual obligations.
We represent clients in state and federal courts, but our attorneys also recognize that effective dispute resolution does not always have to happen in a courtroom. Business matters can often be resolved without litigation by conducting alternative dispute resolution processes such as arbitration and mediation. We oversee detailed investigations, engage in negotiations, and we apply tactical and strategic considerations to decrease your time and money spent.
The Floyd Law Firm also provides counseling on various business practices such as trade association activities, exclusivity agreements, partnerships, and corporate structuring. We help our clients to comply with antitrust laws upon entering into joint ventures or mergers, as well as a broad range of other business matters in multiple types of industries. Committed to helping large and small business owners, we work as a team when solving problems in business situations and we understand how to protect our client’s interests. Our focus is on fostering long solid relationships with all of our business clients.
More Information
WTLX:US tariffs impact local businesses: Shoppers may face rising prices in South Carolina
Business & Corporate Litigation/Trials
