US Tariffs and Their Effect on Global Sourcing: How to Adapt Your Strategy and Manage Costs
The sweeping U.S. tariff changes of 2025 are reshaping global sourcing for businesses of all types – from nimble startups to sprawling multinationals. In early 2025, the White House enacted broad new import tariffs with unprecedented speed and scope (source). The cost of imported materials and products surged overnight, affecting virtually every industry.
Sourcing professionals across apparel, electronics, industrial equipment, consumer goods, and more are now grappling with higher costs and supply chain disruptions. No company is immune: whether you’re a small direct-to-consumer brand or a Fortune 500 manufacturer, these tariffs demand a strategic response.
This article provides a practical look at what’s changed and how to adapt, with guidance that applies universally across sectors and company sizes.
Tariffs Reshape the 2025 Trade Landscape
The new U.S. tariff regime introduced in April 2025 represents a fundamental shift in trade policy. Under a declared economic emergency, the administration imposed a 10% baseline tariff on nearly all imports into the United States (effective April 4, 2025) (source).
Additional country-specific tariffs took effect just days later, targeting nations with large trade imbalances with the U.S., with rates ranging from 11% up to 50% (source). Some of America’s biggest trading partners were hit with steep duties: for example, imports from the European Union now face a 20% tariff, and goods from China face a combined 54% tariff in total (source).
Major manufacturing centers like Vietnam (46%) and India (26%) are also subject to hefty tariffs, among others (source). These measures were enacted swiftly via executive order, catching many businesses off guard and leaving little time to prepare.
Certain categories have their own new tariffs as well.
A 25% duty on all imported automobiles and auto parts was implemented separately in early April (source), compounding the challenges for the automotive supply chain. Long-standing tariffs on steel and aluminum (25% since 2018) remain in effect, with even higher rates on specific metals from some countries (for instance, an extra 50% on Canadian steel was scheduled) (source).
Notably, goods from Canada and Mexico that meet USMCA trade agreement rules remain exempt from these new tariffs (non-USMCA-compliant goods from those countries still face a 25% tariff) (source). A few critical imports – such as certain pharmaceuticals, semiconductors, and minerals – received limited exemptions for national interest (source), but these are the exception rather than the rule.
The scale of these tariff increases is historic.
Overnight, average import duty rates in the U.S. leapt from around 2.5% to roughly 18.8% – the highest average tariff level since 1933 (source). Economists estimate this represents one of the largest tax hikes in decades, with the potential to shave around 0.8% off U.S. GDP in the near term (source).
The immediate implication for sourcing and supply chain managers is clear: importing goods has suddenly become far more expensive, and the old playbook of global sourcing must be rewritten. Every link in the supply chain – from raw material procurement to final assembly and delivery – now needs reevaluation under the lens of elevated tariffs. In this new landscape, staying informed and agile is key.
Companies are leaning on up-to-the-minute data and expert partners like East West Basics to understand tariff impacts and pivot their strategies accordingly.
Wide-Ranging Impacts Across Industries
These tariff changes cast a wide net, affecting a broad range of industries and product categories simultaneously. Sectors traditionally relying on global supply chains are feeling the pressure most acutely. Below, we outline a few major verticals to illustrate how widespread the impact is:
Apparel and Textiles:
The fashion and apparel industry, from clothing to footwear, heavily relies on Asian imports (China, Vietnam, Cambodia, Bangladesh, etc.). With many of these countries facing tariffs between 10% and 50%, apparel brands and importers see their sourcing costs skyrocketing. A shipment of garments that once incurred minimal duties may now carry double-digit tariffs, squeezing profit margins.
Apparel companies – whether a startup streetwear label or a multinational retail chain – are forced to consider consumer price increases, product redesigns, or moving production to alternative locations. For example, some firms are exploring sourcing more from South Asia (e.g. India, Bangladesh) which, while not tariff-exempt, might offer lower labor costs or tariffs than China.
Others look closer to home in Central America or Africa for textile production. Global Product Sourcing partners like East West Basics, given its network across Asia and experience in ethical sourcing, have been advising apparel clients on qualifying for any available trade preference programs and finding trustworthy factories in lower-tariff countries.
Electronics and Technology:
Electronics supply chains are among the most globalized—a single device might source components from China, Taiwan, South Korea, Japan, and more. All of those regions are now subject to significant U.S. import tariffs (e.g., 25% on South Korean goods, 32% on Taiwanese, 24% on Japanese, in addition to the 10% across-the-board) (source).
This is a massive jolt for consumer electronics, telecom equipment, or industrial tech manufacturers. Critical components like semiconductors (which thankfully have some exemptions) and circuit boards have risen in cost. Companies in this space, from small hardware startups to Silicon Valley giants, face tough decisions: absorb the higher costs, pass them on to customers, or redesign supply lines.
We’re already seeing adjustments – for instance, some are shifting final assembly of electronics to Mexico to take advantage of tariff-free status under USMCA for finished goods (source). Others are accelerating plans to manufacture in the U.S., despite higher labor costs, for high-end or bulky products to avoid tariffs altogether.
In the short term, electronics firms are closely watching currency movements (a weakening Chinese yuan or other currency can offset some tariff cost) and negotiating with suppliers for cost sharing.
EWB’s experts note that tech companies are seeking help qualifying new component suppliers in regions like Eastern Europe and Southeast Asia to diversify their dependency on any single country.
Industrial Manufacturing and Automotive:
Industrial sectors – from machinery and equipment makers to automotive and aerospace – typically operate complex, multi-tiered supply chains. Tariffs are now hitting a wide array of inputs for these industries. For example, a U.S. machinery manufacturer might import steel parts from Canada (now 25% tariff unless exceptions apply), electronic control units from Germany (20% tariff), and castings from China (54% tariff) – all of which dramatically raise the cost of the final equipment.
In automotive, companies sourcing parts or finished vehicles from Europe or Asia are facing both the general country tariffs and the specific 25% auto tariff (source). This is pushing carmakers and OEM parts suppliers to accelerate “localization” efforts – increasing the share of parts made in the USA, Mexico, or Canada to stay within the tariff-free umbrella of USMCA.
Industrial firms in sectors like construction equipment and aerospace are likewise examining their supplier lists and finding many of them affected by the new duties.
This industry often has longer-term contracts, so some mid-sized manufacturers are finding their existing supplier agreements suddenly “financially unsustainable” due to a 10–25% jump in import costs (source).
Renegotiating contracts and seeking alternate suppliers have become priorities to keep production lines running without exorbitant cost overruns. Across the board, industrial companies are also bracing for potential retaliation tariffs abroad (e.g. the EU and China responding with tariffs on U.S. exports (source)), which could hit their own export sales – a double impact that complicates planning.
Consumer Goods and Retail:
American consumers will indirectly feel these tariffs in everyday products. The duties cover a broad swath of consumer goods – clothing (as noted), electronics, home appliances, furniture, toys, and more, many of which are imported by retail companies or wholesalers. Retailers, large and small, are in a tough spot: they operate on thin margins and must decide how much of the tariff cost to pass on in the form of higher shelf prices.
E-commerce sellers and small importers are particularly vulnerable; for instance, the tariff policy even introduced a 54% duty on small packages from China (source) (source), targeting direct e-commerce imports. A small business that built its product line by buying from Chinese suppliers via platforms like Alibaba now faces a 50%+ cost increase on those goods – a potentially existential challenge.
Brick-and-mortar retailers, from boutique shops to big-box chains, similarly face inventory cost inflation. In response, many consumer goods companies are diversifying their product sourcing. Some are shifting orders for furniture and housewares to countries like Vietnam or Indonesia (though Vietnam carries a high tariff, it may still be cheaper than China for certain goods).
Others are pressuring suppliers in China to offer discounts or exploring sourcing from regions like Turkey, Eastern Europe, or Latin America that aren’t on the highest-tariff list. East West Basics has observed its clients in home goods and consumer products exploring creative sourcing strategies, such as splitting production: producing components in one country and doing final assembly in a tariff-exempt country to lower the duty on entry.
The retail sector’s experience reminds us that the tariff impact is ultimately shared across the value chain, from factory to end consumer, and managing it requires collaboration between suppliers, importers, and partners.
In short, the tariff hikes of 2025 are truly broad-based. They cut across industries that traditionally depend on low-cost global sourcing, forcing companies in apparel, tech, industrial, consumer, and other sectors to recalculate costs and rethink supply chain design.
Sourcing professionals cannot afford to view this as merely a policy headline – it’s a day-to-day operational challenge now. The next sections discuss how these challenges manifest for different-sized companies and what strategies can help mitigate the impact.
Challenges for Businesses of All Sizes
While all companies importing goods are feeling the tariff pain, the specific challenges can vary by business size and maturity. Below, we consider how startups, small businesses, mid-sized companies, and large multinationals are each affected and the unique issues they face.
The guidance, however, is universally applicable—every organization must adapt, regardless of scale.
Startups and Small Businesses:
Smaller firms often operate with limited buffers and resources, which makes sudden cost increases particularly perilous. Many startups and small businesses run on thin margins, so a 10–20% rise in the cost of goods can wipe out profitability.
These companies also typically have less bargaining power with suppliers and freight providers. For example, a small home décor brand sourcing handcrafted items from India now faces a 26% U.S. tariff on those imports (source); if they lack the cash to absorb that, they might have no choice but to raise prices, potentially losing price-sensitive customers.
Small businesses also report that there are simply no domestic alternatives for many products – “you cannot source everything in the United States” is a common refrain (source). Thus, they must import and pay tariffs, or cease offering those products.
Another challenge is administrative: navigating customs regulations and paperwork (like proving USMCA origin for exemptions) can overwhelm a small firm without a dedicated compliance team (source). Short-term logistics volatility is another issue – many firms rushed to import extra inventory before tariffs hit, only to strain their cash flow and storage capacity (source).
As the Consumer Brands Association noted, companies are “incredibly tapped out” with “nowhere to absorb” additional cost increases (source). For a small business, this can mean very difficult choices: delaying growth plans, cutting other expenses, or seeking loans to cover higher costs.
On the positive side, smaller companies can sometimes pivot faster. Some startups quickly switch to alternative suppliers or creatively redesign products to dodge the steepest tariffs. Many are also contacting consulting and sourcing firms (like EWB) for guidance they cannot afford in-house, essentially “borrowing” expertise to stay afloat.
Mid-Sized Companies:
Mid-sized enterprises sit in between – they may have more stable operations and supplier relationships than a tiny startup, but they lack the vast resources of a Fortune 500 firm.
Prior to 2025, much of the tariff discourse (e.g. the 2018-2019 trade war) emphasized large corporations, but these new tariffs cast a wider net, and mid-sized companies are deeply affected. A mid-sized manufacturer or importer might have a global supply chain optimized for cost efficiency; now, those carefully negotiated supplier contracts may “no longer offer the value they once did” in the new tariff environment (source).
Renegotiation is tough but necessary – for instance, a mid-sized kitchen appliance maker sourcing parts from China and electronics from the EU must go back to those vendors to seek price concessions or risk an unviable cost structure.
Mid-sized firms often have modest teams handling procurement, making it challenging to rapidly evaluate dozens of new variables (tariff rates, alternative suppliers, shipping routes, etc.) all at once. They also tend to have moderate financial reserves – perhaps enough to weather a short-term hit, but not an indefinite increase.
Cash flow management becomes critical (to pay tariffs upfront while awaiting sales revenue), as does cost forecasting, which has become far more volatile (source). On the other hand, mid-sized companies can be quite agile and innovative.
Many are taking a hard look at their supply chains and re-evaluating global sourcing to maintain stability (source) – for example, considering a shift of a production line from a high-tariff country to a lower-tariff one, or joining forces with other companies to increase collective buying power and reduce costs.
This is where a partner like East West Basics can provide substantial support: EWB can help a mid-sized company quickly audit its supplier base, identify alternative sourcing options (thanks to EWB’s network of 1,000+ factories across Asia (EWB Asia)), and even consolidate orders through its channels to achieve better pricing. Such collaboration can level the playing field for mid-sized firms facing giant challenges.
Large Multinationals:
Big companies are not exempt from tariff troubles – in fact, absolute cost increases can be massive in dollar terms for firms importing billions worth of goods. The advantage large multinationals have is diversification and resources.
Many already employ the “China plus one” strategy (or “plus many”) – having manufacturing spread across multiple countries to avoid over-reliance on any single source (source).
For instance, a global electronics company might source components from China, Vietnam, and Mexico; if China and Vietnam both face high tariffs, the company can try to ramp up production in Mexico or another location.
However, shifting large-volume production is neither quick nor cheap – it requires retooling factories, qualifying new suppliers, and sometimes re-training labor, which can take months or years. In the interim, large firms often must absorb substantial costs or pass them to consumers.
Some are large enough to have hedging strategies or sacrifice margins to temporarily maintain market share. For example, a multinational apparel retailer might accept lower profit on U.S. sales rather than raise prices immediately, hoping to ride out the trade tension or negotiate better costs elsewhere.
Big companies also have to manage the political and retaliatory landscape – many have global sales, so if the EU or China retaliate with tariffs on American goods, these firms could see their export revenues hit, complicating the equation (source).
One advantage multinationals may leverage is their internal supply chain flexibility: a company with factories on multiple continents might reallocate which facilities serve the U.S. market versus other regions to bypass the highest tariffs. We’re seeing this with some automotive and electronics giants reallocating production.
They also invest in extensive tariff engineering and compliance efforts, using strategies like adjusting product classifications or slight modifications to qualify for lower duties (within legal means).
Despite their resources, many large firms are also seeking external expertise and local knowledge. For instance, even a global corporation may not have deep supplier contacts in every low-cost country, but firms like East West Basics do, with teams on the ground in China, Vietnam, India, and more ready to vet new supplier opportunities (EWB Asia).
In summary, large companies face high stakes, but they also have more tools at their disposal. The key is coordinating those tools effectively across their vast operations, something that requires strong internal leadership and often help from outside specialists.
No matter the size of the business, a common theme emerges: resilience and flexibility in sourcing have become more important than ever. Companies that can adapt quickly – by controlling costs, finding new suppliers, and redesigning their supply chain strategies – will better weather the tariff storm. The following section outlines concrete strategies that organizations of any size can apply to mitigate the impact of tariffs and even find opportunity amid chaos.
Practical Strategies for Cost Control and Risk Mitigation
In the face of rising costs and uncertainty, sourcing professionals must take proactive steps to protect their business. A blend of cost control measures, risk management tactics, and supplier diversification will be necessary to navigate the 2025 tariff environment. Below is a compilation of practical strategies that apply across industries and company sizes:
Conduct a Tariff Impact Audit:
Start with a clear assessment of your exposure. Map out your entire supply chain and identify which materials, components, or finished goods are now subject to tariffs – and at what rates.
Calculate the projected cost increase on each and the overall impact on your cost of goods sold. This kind of tariff exposure assessment lets you pinpoint the most critical cost vulnerabilities (source). For example, you may find that 80% of your increased tariff costs come from just two supplier relationships (say, a component from China and a subassembly from Germany).
With that knowledge, you can prioritize solutions for those areas first. Use scenario planning: model different cases, such as:
- What if we pass 50% of the costs to customers?
- What if we absorb all costs?
- What if we find an alternative supplier for item X?”
Each scenario will affect margins and pricing, so having a range of outcomes helps in decision-making. This analytical step is fundamental for companies large and small – it provides the data to drive all other strategy moves. (If your team doesn’t have the bandwidth, consider bringing in an outside consultant or a sourcing partner like EWB to perform a rapid supply chain audit and quantify the impact.)
Renegotiate Contracts and Terms:
Once you know where the biggest pain points are, engage your suppliers and review your contracts. In many cases, existing supplier agreements did not anticipate these tariffs, but that doesn’t mean they can’t be adjusted.
Open a dialogue with suppliers about sharing the cost burden, especially if you have been a loyal customer or if the supplier risks losing your business. Some suppliers may be willing to offer discounts, delayed billing, or other concessions to keep the partnership viable under the new pricing reality.
Contract renegotiation can ensure you’re not stuck with outdated pricing that assumed a tariff-free environment (source).
Key areas to negotiate:
- Pricing: Can they give a break to offset tariffs?
- Volume Commitments: You might offer to buy more over time in exchange for lower per-unit cost
- Payment Terms: Longer terms can ease cash flow strain from upfront duty payments
It’s also wise to insert tariff clauses in contracts going forward – stipulations on how sudden tariffs will be handled between parties – to provide clarity and avoid future disputes. Many companies are finding that suppliers, who are also struggling with the upheaval, are open to creative solutions.
Additionally, review your incoterms and shipping terms: if you currently take ownership overseas (e.g. FOB origin), you might shift to FOB destination so the supplier technically is the importer – this is complex and not always feasible, but in some cases, it could allow exploitation of supplier-side duty drawbacks or other mechanisms.
Every situation is different, but the message is: don’t passively accept all cost increases – proactively negotiate and re-contract where possible.
Optimize Pricing and Cost Structure:
Tariffs raise costs, which either cut into your margins or get passed to the customer (or some of both). It’s crucial to revisit your pricing strategy and overall cost structure.
Determine how much of the added cost can be absorbed through internal efficiencies or slight price adjustments. For instance, some companies are introducing surcharge fees or temporary price adjustments tied explicitly to tariffs, communicating to customers that a “tariff surcharge” will be applied until conditions normalize. This can help pass along costs transparently, though it must be managed carefully to avoid customer backlash.
On the flip side, look internally for cost savings to offset tariffs: can you streamline operations, reduce waste, or postpone non-critical expenditures to free up budget?
Some firms are accelerating automation in their manufacturing to reduce labor costs, thereby compensating for higher import costs. Others are tweaking product designs to use more domestically available inputs (reducing the tariffed components).
This kind of cost engineering – e.g., using a slightly different raw material or altering a specification – might also allow reclassification of the product to a tariff code with a lower rate. (For example, a product assembled from parts in two countries might, under customs rules, be classified by the country of final substantial transformation – if you can shift that final step to a country with lower tariffs, the whole product may be imported under a friendlier rate.) Such engineering tactics require careful compliance checking, but they are part of the toolkit.
The goal is to control and reduce tariff-related costs where possible and strategically decide what portion of any remaining increased cost can be passed on without harming demand.
Build up Inventory – Strategically:
When tariff announcements hit, a common reaction is to stockpile critical inventory before the tariffs take effect or before rates increase further. Indeed, in early 2025, many businesses rushed to bring in goods ahead of the implementation dates, causing short-term freight rate spikes (source).
If further tariff hikes or deadlines are on the horizon, consider front-loading imports to the extent your storage and cash flow allow. Buying a 3-6 month supply at the current cost might be smarter than buying month-to-month at escalating prices. However, this strategy must be used judiciously.
Avoid excess inventory that ties up capital and might become obsolete. The post-tariff environment could see demand shifts (for example, if prices go up, consumers may buy less of a product), so you don’t want to overstock items that then don’t sell. Use demand forecasts and inventory modeling to guide how much to pre-buy.
Additionally, ensure your warehousing strategy is efficient. Storing goods in a bonded warehouse or Foreign Trade Zone (FTZ) can defer duties until you actually need to pull the goods into U.S. commerce, which helps with cash flow. In an FTZ, you might even assemble or package products and then re-export some without ever paying U.S. tariffs on the imported parts.
This can be a valuable tactic if a portion of your inventory is eventually sold abroad. In summary, increasing inventory buffers can be a hedge against tariff volatility, but it should be balanced against financial and market risks. Many companies are finding a middle ground: securing a bit more stock of high-risk items as a cushion, while not going overboard.
Collaborate with your logistics partners on this. Freight forwarders and 3PLs (third-party logistics providers) can often provide flexible storage solutions or expedited shipping options to help manage inventory timing around tariff changes.
Diversify Your Supplier Base (“China+N” Strategy):
The most fundamental long-term strategy is supplier diversification across countries. The old idea of “China + 1” – having an alternate sourcing country alongside China – has now evolved to “China + many” or simply a broad diversification imperative (source).
The rationale is clear: if you spread your sourcing across multiple countries, you reduce the risk that any one trade policy will disrupt your entire supply chain. Many companies were already pursuing this due to earlier trade tensions and rising labor costs in China; the 2025 tariffs dramatically accelerate the need.
Start by identifying which alternative sourcing destinations make sense for your industry: for example, India has emerged as a major manufacturing hub for everything from textiles to electronics assembly, and at a 26% U.S. tariff, it’s higher than before but still half the rate of China’s tariff (source). Southeast Asian countries like Malaysia, Thailand, and Indonesia were not on the highest-deficit list and thus only incur the base 10% tariff; they could be attractive for certain product categories.
Nearshore options such as Mexico (tariff-free if USMCA rules are met) or other Latin American nations can also reduce transit times and avoid many tariffs. The key is to develop multiple supplier relationships so you can flex sourcing as conditions change. Vetting new suppliers is a challenge – differences in culture, quality standards, and logistics can complicate a quick shift.
This is where East West Basics’ global network is beneficial: EWB maintains relationships with manufacturers in Vietnam, Cambodia, India, and beyond (EWB Asia), and can help companies quickly identify and qualify suppliers in these alternate locations.
Diversification isn’t just about chasing the lowest current tariff and building resilience. Even if Vietnam currently has a high tariff, having an established supplier there means you have options if policies evolve or if another country’s situation worsens. Diversification also gives you leverage in negotiations – if one supplier knows you have others in different regions, they are more likely to remain competitive on price and terms.
Implementing a multi-country sourcing strategy can take time, so the sooner you start, the better. Some businesses are even adopting a regional production strategy: for instance, supplying the U.S. market from Mexico, the European market from Eastern Europe/Turkey, and the Asian market from China – localizing production to each major region to minimize cross-border tariffs. Not every company can do that, but it’s a concept to evaluate as part of long-term planning.
Strengthen Supply Chain Partnerships:
Tariffs are an external factor that you often can’t control, but how you respond can be bolstered by strong partnerships. Consider joining group purchasing organizations (GPOs) or industry coalitions to increase your buying power. By pooling demand with others, even smaller businesses can obtain more favorable terms that mitigate cost increases (source).
Similarly, work closely with your freight forwarders and customs brokers – they can provide early warnings on regulatory changes, help expedite shipments to beat tariff deadlines, and ensure you’re taking advantage of any duty drawback programs (for instance, recouping tariffs on goods that you re-export or that qualify for refunds).
Communication up and down the supply chain is key in times of turmoil. Talk to your customers as well. Some large retailers, for example, are willing to adjust contract terms or pricing agreements with suppliers when tariffs strike, especially if it means ensuring continuity of supply.
Transparency about the challenges can lead to collaborative solutions, like jointly finding cost savings or alternative sources.
Internally, ensure your finance, procurement, and operations teams coordinate closely. The more synchronized your organization is in responding to tariffs, the more effectively you can execute the tactics discussed (from repricing to supplier shifts).
Regular “tariff task force” meetings or war-room scenarios can help larger firms stay on top of the fast-changing situation. In summary, think of your supply chain not as separate entities, but as a single team working to deliver value. The stronger the team ethos across company boundaries, the better you can weather these changes.
Explore Tariff Mitigation Programs and Legal Routes:
Depending on your product categories, government programs or legal avenues to mitigate tariff impact may exist. For example, the U.S. Foreign Trade Zone (FTZ) program was mentioned as a way to defer duties; additionally, there are tariff exclusion request processes for certain goods (if you can demonstrate that the item is not available outside the tariff-targeted country, sometimes governments grant temporary exclusions).
Stay informed on any relevant trade negotiations – if a deal is struck with a country, tariffs might be reduced for that region, which could quickly change your strategy. Large companies often lobby through industry associations for such exclusions or adjustments; small companies should at least keep an eye on announcements via trade publications or the USTR (United States Trade Representative) website.
Another angle is duty drawback, as noted: if your company re-exports imported goods (or finished products containing those goods), you can often get a refund of 99% of the tariffs paid on those components. Ensure you file for those refunds – it’s essentially reclaiming money that could significantly improve your cost position if you have any export volume.
Lastly, monitor the legal challenges to the tariffs: as of late April 2025, there are political and court challenges to the President’s tariff authority (e.g. a Senate bid to overturn the tariffs was narrowly blocked (source)). If there’s a chance some tariffs could be reversed, you want to be ready to adapt again. In essence, stay agile and informed – treat the tariff situation not as a one-time event, but as a fluid aspect of the business environment that you must continually navigate.
Each of these strategies requires effort and adaptation, but together they can substantially soften the blow of tariffs on your business. Companies that take a proactive, diversified approach – combining cost control, creative sourcing, and strong partnerships – will not only survive these challenges but could emerge more resilient and competitive in the long run. It’s a time of forced innovation in supply chain management, and sourcing professionals are at the forefront of this evolution.
Partnering with Experts for Global Sourcing Support
Adapting to the tariff upheaval can be daunting, and partnering with an experienced global sourcing firm can make a critical difference. East West Basics (EWB), for example, is a trusted sourcing and manufacturing partner that has been helping companies navigate international supply challenges since 1998 (EWB). In the current climate, a partner like EWB is an extension of your team, bringing deep on-the-ground expertise to guide you through real-time changes.
How can a sourcing partner help?
Broad Network Of Suppliers Across Different Regions
First, firms like EWB have teams and offices in key supply regions around the world – East West Basics maintains teams in the U.S. as well as in China, Vietnam, Cambodia, India, and other manufacturing hubs (EWB Asia). This means they can rapidly identify and vet suppliers in alternative countries if you need to pivot sourcing.
For instance, if tariffs make your Chinese supplier untenable, EWB’s team in India or Vietnam can quickly step in to recommend reliable factories there, leveraging their established network. (EWB’s network includes relationships with over 1,000 factories across Asia (EWB Asia), giving clients a vast pool of options.) These local teams also ensure quality control and compliance on the ground – a crucial factor when onboarding new suppliers in new countries.
They can perform factory audits, oversee production, and check product quality before shipment, reducing the risk of surprises that you might face if you tried to source remotely on your own.
Strategic Advisory Expertise And Risk Management
Second, an expert partner provides advisory expertise on supply chain strategy and risk management. East West Basics, for example, doesn’t just source products – they guide clients from design through delivery (EWB).
In practice, this means they can advise on how to redesign a product to be more “tariff-friendly”, suggest changes in materials or assembly that maintain quality while lowering cost, and manage the logistical complexities of shifting routes or consolidating shipments.
Their experience with international logistics is invaluable: EWB helps navigate the complex web of shipping, customs, and import regulations, ensuring that even as you juggle multiple sourcing countries, your goods keep flowing smoothly to their destination. For a company trying to handle these challenges internally, the learning curve is steep – but with a partner, you get the benefit of seasoned professionals who have seen similar scenarios before.
Scalability and Flexibility
Third, partnering can offer scalability and flexibility. If you’re a smaller company suddenly dealing with big-company problems (like multi-country tariffs and compliance issues), a sourcing partner scales up your capabilities quickly without the need to hire full-time specialized staff in every area. I
f you’re a larger company, an external partner can provide niche expertise or additional bandwidth to your procurement department during a critical pivot. In both cases, having a “guide” through the turbulent trade environment reduces risk.
It also frees your internal team to focus on core business activities (like marketing, product development, or sales) while the sourcing partner handles much of the firefighting in the supply chain.
Reliable Trusted Partner and Advocate
Lastly, a partner like East West Basics serves as a reliable ally and advocate. In uncertain times, it’s important to have someone watching out for your interests globally. EWB, for instance, keeps clients informed of on-the-ground developments – if there are sudden policy changes, port delays, or cost fluctuations in a region, EWB can alert you and help adjust plans.
This real-time intelligence is something few companies can gather on their own, but it’s part of the service from a globally immersed partner. Over the years, EWB has built a reputation as a trusted advisor in sourcing, having supported businesses ranging from innovative startups to major retail chains (many recognizable brands rely on EWB for their sourcing needs).
That trust is particularly valuable now: when every sourcing decision has high stakes, knowing you have expert support provides confidence.
Conclusion:
The 2025 U.S. tariffs have undoubtedly created challenges across the board – increasing costs, rattling supply chains, and forcing difficult decisions.
Yet, with challenge comes an opportunity to strengthen and innovate. Sourcing professionals are using this moment to implement smarter, more resilient supply strategies: diversifying supplier bases, refining cost structures, and forging stronger partnerships.
The guidance provided here – while born out of a specific policy shift – exemplifies good practices that will continue to pay dividends beyond the current tariff situation.
By staying informed (backed by real-time data and news (source)), remaining agile in operations, and possibly leaning on experienced partners like East West Basics for support, companies can not only mitigate the impact of these tariffs but also emerge with a more robust global sourcing approach.
Building a flexible and resilient supply chain is the best defense in a world where change is the only constant. The tariffs of 2025 are a big test, but with the right strategies and support, sourcing professionals across industries and company sizes can pass this test and keep their businesses globally competitive.