The Time AI Got My Tariff Wrong (and What I Learned from It)

By Alex Viva, Director of SBTDC’s International Business Team

A while back, I was rushing to get answers on an import for a client that was very confused with all the tariff updates. Instead of classifying the product correctly using the General Rules of Interpretation and then digging through the Harmonized Tariff Schedule like I normally would, I decided to ask an AI tool for help. In seconds, it gave me a detailed tariff classification and duty rate.

It sounded confident. It looked official.

But it was wrong.

If I had relied on that answer, my client may have overpaid duties by thousands—or worse, underpaid and set himself up for penalties. That was my wake-up call: AI can be incredibly useful, but when it comes to tariffs, it’s not something I can blindly trust.

Why AI Trips Over Tariffs

Here’s what I’ve learned since:

• Rules are always changing. Tariffs aren’t static; they shift based on politics, negotiations, and trade disputes. AI often lags behind those changes.
• The details make or break it. Whether something is classified as a part or a finished good, or whether it’s aluminum instead of copper, can completely change the duty rate. AI doesn’t always pick up on those distinctions.
• Context matters. Tariffs don’t just depend on the product—they depend on where it’s coming from, what agreements are in place, and whether exemptions apply. AI tends to gloss over that nuance.

What I’ve Seen Go Wrong

Since that experiment of using AI to determine a tariff, I’ve paid closer attention, and I’ve seen how bad information can snowball:

• Companies overpaying duties because they got a classification that was too broad.
• Others underpaying and later dealing with audits, fines, and a lot of stress.
• Shipments stuck at the border because paperwork didn’t match what customs expected.
• Reputations taking a hit because clients lost confidence in their compliance.

How I Suggest We Use AI Now

I still use AI, but differently. Instead of treating it as the final word, I use it as a starting point—a quick way to get oriented before I double-check the real sources. My process looks like this:

• Always verify with customs. In the U.S., that means checking CBP rulings and the official Harmonized Tariff Schedule. Follow the General Rules of Interpretation.
• Work with experts. Licensed customs brokers, trade attorneys, and experienced international business professionals can spot things AI misses.
• Stay updated. I subscribe to trade bulletins so I’m not caught off guard by new rules. A must in today’s environment.
• Document everything. I keep records of my classifications and justifications in case questions come up later.

Final Thought

That first experience taught me something important: AI is a great helper, but it’s not a compliance officer. When it comes to tariffs, I suggest spending a little extra time double-checking rather than risk a very expensive mistake. The SBTDC and our experienced international business counselors can guide you through the complexity in today’s environment and assist in setting up or realigning your global strategy.