Don’t wait for the Supreme Court: legal ways to minimize tariff exposure now

Alexander “Zander” Brekke, former president of Mud Pie and now founder and principal attorney at A. Brekke Law Group, might be out of the family’s wholesale business, but he isn’t gone from the gift industry. Now, Brekke is putting his law degree to work to help importers, sourcing agents, retailers and consumer product companies navigate the challenges caused by President Trump’s tariffs.

On the heels of last week’s oral arguments in the Supreme Court cases Trump v. V.O.S. Selections, Inc. and Learning Resources, Inc. v. Trump, Brekke has collaborated on a white paper to help industry players prepare for tariff-related risks and opportunities.

“Tariffs now represent a significant, ongoing cost component for consumer product companies,” Brekke said. “The gift industry is particularly impacted. With the U.S. Supreme Court conducting legal review of certain tariffs and the Administration signaling that new tariff measures under alternate legal authorities are likely, trade policy is likely to remain an important issue impacting the industry for the foreseeable future.”

Brekke explained that though many importers believe they may soon see relief from challenges caused by tariffs since they’re under review by the Supreme Court, the Administration has already indicated its intent to use other statutory tools like Section 122 of the Trade Act of 1974, Section 301, and Section 232, to maintain or expand tariff programs.

“In short, even if parts of the existing tariff framework are curtailed, tariff risks and opportunities will remain,” Brekke said.

Brekke teamed up with experienced customs attorney Lynne Wendt of Wendt & Temples, LLC, to produce the white paper, “Tariff Mitigation and Trade Compliance Strategies for Today’s Global Supply Chains.” The paper outlines practical, lawful measures to reduce customs duty exposure and align trade compliance with profitability.

“Lynne and I saw a gap between legal trade frameworks and the day-to-day realities importers face in the current environment,” Brekke explained. “Many consumer-product companies and other companies that utilize imported components currently face margin pressure from tariffs while still working to maintain compliance with trade law. Although every business has unique legal needs, the paper is intended to be an informational resource that teams navigating trade complexity can consult.”

Download the white paper here.

New law firm aims to help small, mid-sized businesses

“The industry is comprised of many small and mid-sized businesses, who serve vital roles as employers in their communities, but might not have in-house counsel or access to trade counsel,” Brekke explained about why he felt the need to found his new law firm. “Sharing lawful mitigation strategies helps smaller and mid-sized brands (and the companies, salespeople, retailers and vendors who depend on them), stay compliant and resilient as trade policy evolves.”

Though A. Brekke Law Group is a new firm, Brekke is by no means new to the industry. Not only did Brekke work as the president of Mud Pie for more than two years, but he also has roughly a decade of experience running operations for businesses.

“My background is a bit unique in that I am an attorney, but I also worked for almost 10 years as an operational executive,” he said. “Through that lens, I view tariff mitigation as primarily a legal/compliance issue, but also one of those issues that, with skilled legal counsel engaged, can provide margin and overall P&L benefits to a business in addition to the risk management benefits.”

Brekke added that A. Brekke Law Group is available to discuss mitigation and compliance strategies that might apply to different operations.

“A. Brekke Law Group primarily acts as outside general counsel to companies across a range of industries but offers specific legal services that are particularly well-suited to consumer product companies and others in the gift industry,” he said. “Beyond tariff mitigation and trade compliance, we provide counsel on federal and state regulatory compliance, licensing, product liability, copyright and trademark matters, corporate governance, M&A, contracts, leasing and employment matters.

“We work with organizations of all sizes, but with a primary focus on small and mid-sized businesses in need of embedded counsel that understands how legal services can complement a business owner’s operational goals.”