Strategies to Mitigate the Risk of New Tariffs in the United States

As global trade policies continue to shift, U.S. businesses are increasingly exposed to the risks of new tariffs. These can disrupt supply chains, inflate costs, and challenge competitiveness. However, with proactive strategies and the right partnerships, companies can adapt effectively and thrive.

Here are key ways to mitigate tariff risks while leveraging advanced manufacturing and supply chain solutions.

1. Diversify Your Supply Chain

Relying on sourcing from a single country can make businesses vulnerable to tariff changes. By diversifying your supply chain to include suppliers from multiple countries with favorable trade agreements, you reduce dependency and spread risk. OEMs can also potentially benefit from sourcing a common part from multiple locations.

How We Can Help:
For Original Equipment Manufacturers (OEMs) considering supply chain adjustments, our global product migration solutions offer unmatched flexibility. With CCC-certified manufacturing facilities in China and North America, we enable seamless transitions and simultaneous production across regions, depending on your needs.

2. Explore Reshoring and Onshoring Opportunities

Manufacturing closer to your customer base not only reduces exposure to tariffs but also improves process control and responsiveness. Reshoring or onshoring products can be particularly advantageous for accessing the U.S. market.

How We Can Help:
We possess the capabilities and certifications needed to transfer production for North America back to North America. By leveraging localized manufacturing, OEMs can capitalize on improved supply chain efficiency and enhanced market access while mitigating tariff risks.

3. Optimize Offshoring for Strategic Growth

While tariffs may complicate offshoring, the right approach can still unlock significant benefits. For instance, manufacturing in China remains advantageous for entering the rapidly growing Chinese market or for dual production strategies serving global distribution. Many OEM products are also now required to carry CCC certification, which can be challenging to get. 

How We Can Help:
Our facilities are equipped to handle dual production setups, enabling OEMs to produce in both China and North America for maximum flexibility. For companies eyeing the hyper-growth Chinese marketplace, our CCC and ISO certified manufacturing capabilities in Asia ensure compliance and efficiency.

4. Leverage Total Cost of Ownership Analysis

When faced with tariff-related challenges, a comprehensive Total Cost of Ownership (TCO) analysis is essential. By examining all factors—logistics, production costs, tariff implications, and more—OEMs can make informed decisions about their supply chain and manufacturing strategies.

Key Insight:
Not every product is suited for offshoring, reshoring, or onshoring. However, many OEMs are surprised by the discrete savings and strategic advantages that emerge when TCO calculations are conducted accurately.

5. Consider Dual or Multi-Site Manufacturing

For products distributed globally, a dual production strategy—manufacturing in both North America and China—can mitigate tariff impacts while ensuring supply chain redundancy with added flexibility.

How We Can Help:
We support simultaneous production in multiple locations, allowing OEMs to respond to tariff changes swiftly. Whether you aim to distribute globally or balance production between regions, our solutions provide the flexibility and support you need.

Key Scenarios Where Our Solutions Shine

• Transitioning production of China-made products to North America for market expansion.
• Establishing dual production in China and North America to optimize global distribution.
• Combining North American product design expertise with cost-effective manufacturing in China.
• Reshoring products designed and manufactured in China to open North American market opportunities.

Conclusion

The risks posed by new tariffs are real, but they also present opportunities for businesses willing to adapt. Whether you’re looking to move a product offshore, bring it back to North America, or manufacture in multiple locations globally, our global product migration solutions are designed to help you succeed.

Let us guide you through strategic transitions that optimize cost, minimize risk, and position your business for sustainable growth. Contact us today to explore your options!