Trump Tariffs and the Supply Chain: What Brands Need to Know

The tariff tide is turning. With the return of Trump-era trade measures, global supply chains are entering a new wave of volatility. While the full impact is still unfolding, one thing is clear: brands that can adapt quickly will gain a competitive edge.

At Charming Trim, we’re monitoring these developments closely to help our partners stay ahead. So, what’s at risk?

The current tariff landscape

Although Trump’s rhetoric on tariffs has been aggressive, the actual rollout has been more measured. The U.S. is currently in a 90-day pause on reciprocal tariffs for most countries, with a temporary 10% rate in effect. China is excluded from this pause and is facing significantly steeper tariff hikes.

Some goods from China may qualify for a reduced 10% duty under an “on the water” clause provided they were loaded on their final mode of transit between April 5 and April 9, 2025, and are cleared for U.S. consumption before May 27. Shipments that fall outside of this window will be subject to the full Trump-era tariff rates.

It’s worth noting that these tariffs may be more tactical than permanent. Many appear aimed at pressuring countries with large trade surpluses into negotiating with the U.S., meaning tariffs could be revised or rolled back as deals are struck.

Strategic sourcing

As tariff policy evolves, where you produce matters more than ever. Here’s how some of Charming’s key sourcing regions are currently positioned:

Bangladesh & Vietnam

Once dependable, both countries have been targets of Trump’s reciprocal tariff plan. With levied tariffs of 46% on Vietnam and 37% on Bangladesh, these sourcing hubs are no longer the safe bets they once were.

Mexico

Mexico stands out as a strong option. Goods that comply with the USMCA continue to enjoy 0% tariffs. While that may not last forever, Trump has signaled that USMCA-compliant goods would likely receive preferential treatment under any new tariff structure.

The USMCA also includes a de minimis provision, allowing a small percentage of non-originating materials (i.e., from outside the U.S., Mexico, or Canada) to be used in a product without losing tariff-free status. Most Charming products meet this threshold thanks to their low per-unit value.

That’s why Charming maintains a global sourcing network designed for agility and flexibility. We can quickly pivot production as policies shift, helping our partners navigate uncertainty, maintain compliance, and capitalize on policy advantages when they arise.

Your digital edge

In a volatile trade environment, every tool counts. Boosting efficiency has a direct impact on your bottom line. Digital label technology enhances supply chain visibility, helps you stay ahead of regulatory changes, and strengthens your connection with consumers. 

Digital product passports (DPPs)

DPPs, like Charming.DIGI, offer a future-ready solution by embedding traceability and compliance data directly into your products.

With DPPs, your team can verify product origin, materials, and manufacturing conditions. Whether policies change next month or next year, DPPs ensure you have the infrastructure in place to stay compliant and responsive.

But DPPs aren’t just about mitigating uncertainty — they’re a strategic asset in today’s market. The resale market is booming. With economic uncertainty reshaping spending habits, many shoppers are turning to secondhand goods and innovative brands are meeting them there.

Secondhand products are also exempt from the same import duties as new goods. Products with DPPs are resale-ready, making them easier to authenticate, track, and market. DPPs also enable companies to communicate directly with consumers, curating a consistent brand experience across the product’s entire lifecycle and even across multiple generations of owners.

Radio frequency identification (RFID)

While DPPs store and communicate product data, RFID is the key to gathering that data. When paired with RFID management software like Truecount, RFID enables real-time tracking across every stage of the supply chain.

This data gives your team the insights to assess what’s truly at risk from tariffs or geopolitical changes. Real-time tracking also supports tariff-related compliance, helping you verify qualifications for requirements like the “on the water” clause or USMCA de minimis thresholds.

Beyond navigating today’s disruptions, RFID equips your company with the data needed to continuously optimize your supply chain and boost profit margins.

Moving forward

Trade turbulence is back, but it’s not unmanageable.  Charming is here to help. From our agile global sourcing network to our compliance-ready digital tools, we’re equipped to support your business through whatever policy changes come next.

Get started on future proofing your supply chain and schedule a consultation with us today!