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3 Tariff Mistakes Manufacturers Are Making Right Now

September 28, 2026

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If you’re importing goods into the United States, you may be paying more in duties than is necessary. But there’s good news: You can get that money back.

More than companies in any other industry, manufacturers often qualify for tariff refunds because of what they import and how they use those goods. We have worked with many manufacturers that have discovered thousands (sometimes hundreds of thousands) of dollars in available refunds. 

Now is a particularly good time to check whether your company is due a tariff refund. Earlier this year, the U.S. Supreme Court invalidated a wide swath of tariffs imposed in 2025 and 2026, allowing companies to claim refunds for certain duties paid.

Let’s walk through three common tariff-related mistakes that could be costing your business money. 

Mistake #1: Not Taking Advantage of Drawbacks and Duty Suspension Programs  

As a manufacturer, you may be able to lower your company’s duties in two ways: by submitting drawback claims for imported goods that are subsequently exported and by using duty suspension and reduction programs.  

Drawbacks are refunds of duties paid on imported materials that you later export or use in exported products. If you import parts, assemble them, and sell the finished product overseas, you likely qualify for a drawback. 

Duty suspension and reduction programs waive or lower tariff rates on specific goods that aren’t made domestically in commercial quantities. These rates change periodically, and manufacturers often pay the old rate without realizing a lower one is available. You can recover that overpayment by requesting a refund. 

The takeaway: If you import anything, it’s worth an audit. It might reveal that you’re due a refund, even dating back three to five years. 

Mistake #2: Maintaining Incomplete Records 

When requesting tariff refunds, documentation is everything. For example, CBP won’t approve your drawback claims until it has proof that your imported materials became part of an exported good. That means you need: 

  • Import and export records that clearly connect
  • Production records showing how imports were used
  • A clear supply chain trail from raw material to finished product 

Manufacturers we work with often have the data scattered across systems, making it difficult to build refund claims efficiently. If separate systems track imports, shipping records, and production logs, you’ll struggle to prove your claim. 

The takeaway: Organizing your tariff refund documentation is the first step in building a strong claim. In the long-term, it pays to build interconnected systems that help automate these refund claims. 

Mistake #3: Assuming the Refund Will Be Too Small To Matter  

It’s easy to think requesting a refund isn’t worth the effort because you’ll probably get back only a few thousand dollars. 

You might be surprised to know how quickly tariff savings can compound. A few thousand dollars per shipment becomes tens of thousands over a year. One client recovered over $200,000 in refunds they didn’t even know existed. 

The effort required is usually smaller than companies expect, especially if you work with a team that knows the tariff landscape.

The takeaway: Don’t dismiss the potential upside of requesting a tariff refund. It often justifies the initial exploration.

What To Do Next 

If you import goods or manufacture products from imported materials, here are three steps to consider: 

  • Step 1: Identify what you import and where it goes. Does it leave the United States as part of another product? Is it a material subject to duty suspension? 
  • Step 2: Pull together your import and export records. You don’t need them organized yet. Just find them.
  • Step 3: Talk to someone who understands both tariffs and manufacturing operations. A quick conversation can tell you whether a formal refund audit makes sense for your business. 

We Understand the Details 

At Smith + Howard, our team brings together tariff and trade compliance expertise with deep manufacturing industry knowledge. We’ve helped companies across chemical production, electronics, food and beverage, and primary metals recover refunds they didn’t know were available.

More importantly, we help you think ahead. Understanding your tariff exposure isn’t just about recovering past dollars. It’s about building a trade compliance strategy that protects your margins and supports your growth.

If you’d like to explore whether tariff refunds might apply to your business, we’re here to help. Reach out to start a conversation.

Ready to find out what you might be missing? 

Contact us at (404) 874-6244 or visit smith-howard.com to connect with our Tariff and Trade Compliance team.

How can we help?

If you have any questions and would like to connect with a team member please call 404-874-6244 or contact an advisor below.

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