How Trump Tariffs Are Reshaping Global Sourcing Strategies

Tariffs are back at the centre of trade planning. In 2025, the White House introduced a baseline 10% tariff on all imports, with higher country-specific “reciprocal” rates for dozens of partners. These measures sit on top of existing duties and any Section 301 tariffs, which means your landed-cost math has changed overnight.

Reuters reports that the new rates range from 10% up to the low-40s for many countries, with implementation beginning in early August and limited grace periods for goods already on the water. Enforcement attention has also turned to trans-shipment and tariff evasion, with steep penalties flagged for misdeclared origin.

For sourcing teams, this isn’t a theoretical policy shift. It affects quotes, MOQs, cash flow, Free on Board decisions, and even which port you ship from. Below is a practical playbook to protect margin and keep timelines steady.

What changed in 2025 (and why it matters)

10% baseline tariff + higher “Annex I” rates. The July 31 Executive Order retained a universal 10% tariff and modified many country rates above that level. Plan for the baseline plus MFN duty plus any existing special tariffs.
Roll-on from 2024 measures. The previous administration’s Section 301 review raised rates on targeted categories (for example EVs, batteries, solar inputs, cranes and some metals). Those actions remain part of today’s stack, so some SKUs now carry multiple layers of duty exposure.
Security-driven trade. Tariffs are being used more broadly as leverage in national-security and geopolitical negotiations, which increases policy volatility and the need for contingency routes. (The Washington Post)

What this does to your landed cost

Your total landed cost is now the only number that matters. Rebuild it line by line:

Tariffs and duty: Baseline 10% + Annex country rate (where applicable) + MFN duty + any Section 301 or special measures. Check current treatment for your exact HS code and destination.
De minimis and small parcels: Policy moves to curtail de minimis and crack down on parcel arbitrage will pull more shipments into full duty collection and formal entry. Budget accordingly.
Trans-shipment risk: Goods routed through third countries to change apparent origin face heightened CBP scrutiny and potential punitive rates if origin doesn’t meet the rules. Build documentation early.

If you need a refresher on the mechanics, start with our explainers on Incoterms and Duties & Taxes, then loop in the logistics plan with Air vs Sea Freight and Shipping & Logistics.

Strategy shifts we’re implementing for clients

Origin by design, not by accident

Move from “quote then ship” to origin engineering. For some product lines, Vietnam assembly can lawfully shift origin while holding quality, provided your rules of origin and substantial transformation tests are satisfied. We handle the factory mix and the paperwork so you don’t invite penalty risk.
(Reuters)

Dual-country playbooks

For electronics and complex assemblies, a hybrid route often wins: components in China, final assembly in Vietnam. You keep access to China’s deep component ecosystem while reducing the tariff hit where rules of origin permit. We map this at HS-code level and validate documentation before you commit.

Order economics that protect cash

Shorter runs and staged ramps reduce exposure while you test yields in a new country. Vietnam can help with friendlier MOQs in apparel, footwear and furniture; China still excels at high-volume throughput and complex tooling. We balance both to optimise total cost, not just unit price.

Helpful: Guide to Minimum Order Quantities

Contingency routing and buffer time

Expect extra customs scrutiny and new documentary asks. Build buffer lead time for first shipments out of a new origin, and confirm port pairings with capacity headroom so you’re not stranded if a lane tightens.

Compliance beyond the US

If you sell into the EU, keep an eye on CBAM. Reporting is already required in the transitional phase and monetary obligations start from 2026 for covered goods. That changes landed cost in Europe and may influence where you do energy-intensive steps. (Taxation and Customs Union artem.earth)

Quick comparisons you can act on

Apparel and footwear to AU/EU: Vietnam often wins on labour and origin. Check fabric/component sourcing and allow for testing and fit approvals.
Phone accessories to the US: China usually wins on tooling and component access. A Vietnam assembly finish can help if it meets origin rules, but model it both ways with your exact HS code.
Home furniture to AU: Vietnam’s woodworking and upholstery bases are strong. Validate packaging specs for drop tests to avoid rework.

If you want a model you can hand to finance, we can build a side-by-side landed-cost comparison for your top SKUs across China, Vietnam and a hybrid route. See Product Sourcing & Manufacturing and our Order Process.

A 30/60/90 action plan

Day 1–30

Confirm HS codes, destination markets and current tariff treatment.
Rebuild landed-cost models with the new baseline and reciprocal rates. (The White House Reuters)
Identify SKUs suited to Vietnam assembly and request factory pilots.
Tighten documentation for origin, content and supplier declarations.

Day 31–60

Split BOMs: keep complex components in China where it saves time; move labour-intensive steps to Vietnam where it saves duty.
Lock QC gates and first-pass yield targets; book pre-shipment inspections in both countries.
Publish updated Incoterms in POs; align freight with cash flow.

Day 61–90

Scale winning routes; retire lanes that no longer pencil out.
Build alternates for your top two SKUs in each country.
Start link-back planning to EU CBAM if you sell steel, aluminium or other covered inputs into Europe. (Taxation and Customs Union)

Why work with The Sourcing Co now

We’re a single team that joins the dots: product development, factory selection, quality control and logistics. That means one accountable plan from quote to customs. See our Case Studies and talk to us about a live landed-cost comparison for your next order: Contact us.

References

White House Fact Sheet, July 31, 2025: “Further Modifies the Reciprocal Tariff Rates.” Confirms a baseline 10% tariff and modified country rates.
Reuters, Aug 7, 2025: New tariff policy taking effect, with ranges, grace periods, and anti-evasion focus.
White House Presidential Action, July 2025: Executive Order background and legal basis.
Washington Post, Aug 9, 2025: Tariffs used as broader national-security leverage. (The Washington Post)
USTR/White House (Biden archives), May 14, 2024: Section 301 increases on targeted sectors that still apply in 2025.
European Commission CBAM page: timelines and compliance phases relevant to EU-bound goods.