How to prepare for tariffs under Trump's trade agenda

Including snippets reposted w/ permission by Sourcing Journal

President Donald Trump has officially taken office and individuals and businesses alike are watching to see what’s coming next. 

Throughout his campaign, he spoke intensely about imposing tariffs as soon as Day One of his presidency. Vicki Young of Sourcing Journal shared specifics: 

“Campaign talk had possibilities that include a 10-20% levy on all imported goods to incentivize domestic manufacturing, up to a 60% increase on certain goods from China, and an immediate 25% tariff for Mexico and Canada and an additional 10% on top of existing tariffs for China when Trump takes office.

So what’s the update — and what does it mean for your brand?

Trump’s tariff update

The Sourcing Journal published an article that clarified the executive orders President Trump took on Monday after his official inauguration — but they did not include immediate tariffs as previously promised.

“The Commander in Chief issued a number of executive orders related to immigration, the economy, and energy within hours of taking office, but he declined to pull the trigger on any new duties on foreign-made goods,” said Kate Nishimura of Sourcing Journal.

Instead, Trump’s administration is entering an information-gathering phase as he instructs federal agencies to look at America’s trade relationships with three major partners: China, Mexico, and Canada.

“Senior advisors to the president confirmed this plan to the Wall Street Journal, telling the outlet that Trump plans to direct federal agencies to develop strategies to alleviate trade deficits with other nations and address trade and currency policies that he deems unfair. The source told the outlet that Trump is seeking to advance his trade agenda ‘in a measured way,’” wrote Nishimura.

That being said, Trump raised the potential of a 25% tariff on Mexican and Canada being imposed on February 1. With a date in mind, it’s time for brands to get prepared.

What should you do to prepare?

While details are pending, it seems clear that tariffs are coming down the pipeline. If you’re a brand with a global supply chain, you’re likely feeling the pressure to prepare for these emerging economic changes. 

Here’s are two key tips you can keep in mind to get ready for Trump tariffs:

Ensure your suppliers are global and full-service

As tariffs emerge quickly and, at times, unexpectedly, you’ll want to make sure your suppliers can serve from a variety of locations. Rather than relying exclusively on China or Mexico, a global supplier with multiple manufacturing facilities enables you to shift production as tariffs emerge. 

Charming Trim takes global fulfillment seriously, with manufacturing located strategically around the world, including:

• China
• India
• Vietnam
• Sri Lanka
• Turkey
• Mexico
• Pakistan
• France
• Guatemala
• Bangladesh
• USA
• Honduras

A global presence in your suppliers means you can fulfill orders without an overreliance on any single country. 

Be open to using local raw material sources as needed

While standardization is always ideal, tariff costs can be extreme. And as brands select new manufacturing hubs, supply chain delays from new destinations are likely. Local raw material sourcing allows you to skip the hassle and continue production swiftly and affordably. 

And local raw materials can do more than help you save time and money. As sustainability regulations continue rising, local sourcing can help you cut down on Scope 3 Greenhouse Gas Emissions.

Global suppliers and local materials are the future of agile, sustainable production. While no one can predict what tariffs are coming, brands can get prepared by taking cost-effective, environmentally friendly action today.

To learn more about how Charming can support you globally, reach out to a member of our team for a conversation about your requirements.