Tariff Preparedness: A Pathway for EDOs & Foreign Direct Investment

Tariffs used to be a background issue—something handled quietly by logistics teams and customs brokers. Today, they are front and center in conversations about where companies invest, expand, and create jobs. For economic development professionals, tariff preparedness has quickly become essential to staying competitive in a changing global economy.

As global trade policies shift and evolve, companies considering the U.S. market are asking new, more complex questions. How much will it cost to ship goods into the country? Are those costs stable—or likely to change again? Would it make more sense to locate operations inside the U.S. rather than import equipment, materials, or finished products? These questions are reshaping how communities position themselves for foreign direct investment (FDI).

At its core, tariff preparedness is about helping companies understand the real cost of doing business. U.S. Customs and Border Protection collects tariffs, which can significantly affect the price of importing machinery, equipment, and materials. In today’s environment, those costs are no longer predictable add-ons—they can influence whether a project moves forward at all.

Economic developers are increasingly expected to explain how tariffs factor into broader location decisions. That includes helping companies compare the cost of shipping goods into the U.S. with producing or assembling them domestically. For many firms, this comparison is now a deciding factor when evaluating U.S. locations.

Federal policies and congressional legislation related to tariffs and trade requirements continue to evolve. While no guidance can be truly permanent, having a clear snapshot of current and pending legislation helps companies make informed short-term decisions and reduces hesitation caused by the unknown.

For economic development organizations, staying current isn’t optional; it’s an expectation of service. Communities that can explain today’s rules—and acknowledge where changes may occur—build credibility with prospective investors and existing foreign-owned employers alike. An ability to effectively highlight these options means economic development professionals can move from simply reacting to tariffs to actively helping companies manage them. That shift—from information provider to strategic partner—can make a meaningful difference in investment outcomes. It can shift your EDO into a proactive solutions resource and may strengthen the case for locating operations in the U.S. If importing equipment or goods becomes too costly over time, establishing domestic production can offer long-term savings and stability. For economic developers, this opens the door to new business development opportunities.

Situated adjacent to Hickey & Associates, one of the oldest independently-owned corporate site selection companies in operation, means that Hickey Global has unfettered access to insights into what companies are looking for in tariff information and solution support, and which communities across the nation are most prepared to fold that support into their service offerings. Tariff preparedness is no longer a niche concern. It sits at the intersection of trade policy, site selection, and economic competitiveness. For communities that want to succeed in today’s global economy, understanding tariffs—and helping companies navigate them—is part of the job.

Tariffs may continue to change, but their influence on investment decisions is here to stay. Connect with Hickey Global to learn more about how we can help your organization develop best practices to ensure consistent, accurate messaging about the strengths of doing business in your market amid a changing economic landscape. We’ll use our expertise to help your team build internal checklists and external briefing materials, allowing you to confidently promote your community internationally as the best place in the US to do business.