The U.S. Just Got Pricier. Here’s How the Best Suppliers Are Still Winning.

How New Tariffs Are Cutting Into Supplier Margins

The U.S. is still the most lucrative market in the world—but it’s also getting more expensive to serve. With a new wave of tariffs targeting Chinese goods and a broader push to reshuffle global supply chains, many suppliers are discovering that the cost to enter and stay competitive in the U.S. has quietly crept up.

As of June 2025, recent negotiations brought a temporary 90-day tariff reduction, dropping rates on some Chinese goods from a peak of 145% to a baseline of 30%. But don’t let that number fool you.

With added duties and fees, most suppliers still face real-world rates well above 30%, especially on electronics, lighting, and consumer goods. According to Yale’s Budget Lab, the U.S. is now experiencing its highest average tariff rate since 1909—over 21.9%.

Tariffs aren’t just a line item anymore. They’re eating into your margins, inflating landed costs, and forcing tough conversations with buyers who won’t always accept higher prices. Even suppliers outside of China aren’t immune. Countries like Vietnam, India, and Turkey are seeing increased scrutiny as the U.S. sharpens its trade policies.

Imagine a supplier importing LED fixtures from Shenzhen. Their product used to land at $12.50/unit, including freight. Now, with new tariffs, it’s $15.75. Their buyer wants to cap wholesale at $18. That leaves just $2.25 to cover warehousing, fulfillment, and profit. A few years ago, that margin would have been $5. They're feeling it.

📈 In a recent survey, 40% of global manufacturers expect double-digit cost increases due to tariff shifts. U.S. retailers, including Walmart, are pushing suppliers to eat the tariff to preserve shelf pricing. The pressure is real—and rising.

But while many are reacting late or unsure of what to do next, others have already adjusted. They understand this is the new cost of admission, and they've started playing a smarter game.

Here’s what you need to know.

Why Tariffs Aren’t Temporary Anymore

This isn’t about Trump vs. Biden. Both sides, regardless of party, have shown they’re willing to put tariffs on the table. China remains the focus, but the broader shift is toward "de-risking" supply chains and reducing dependence on any one foreign market.

Whether it’s the Biden administration targeting strategic sectors or Trump’s push for a 10% across-the-board tariff, the message is clear: tariffs are becoming a long-term lever, not a short-term tactic.

One home decor manufacturer we know in India assumed that a future administration would drop tariffs and restore "business as usual." But that rollback never came. Their U.S. buyer eventually dropped them for a Mexico-based supplier who could offer faster shipping and simpler compliance.

What that means for you is simple: trade disruptions, sudden policy changes, and tariffs aren’t just temporary spikes. They’re becoming part of the new normal. If your business depends on a smooth, low-cost path from factory to U.S. retailer, now is the time to rethink what "smooth" really means.

This is where long-term planning beats short-term reaction. The most resilient suppliers are already treating this shift like a permanent condition and realigning their infrastructure accordingly.

💡 Furniture prices alone rose over 7x the national average in April 2025 due to tariff impact. If your category hasn’t been hit yet, assume it’s coming.

A New Era of Supply Chain Strategy

We are transitioning from a cost-centric to a resilience-centric supply chain model.

The days of relying entirely on one low-cost country are fading. Many international suppliers—especially Chinese firms—are routing shipments through Mexico, conducting final assembly there, and importing into the U.S. tariff-free under the USMCA. In fact, container shipments from China to Mexico jumped more than 26% in the first half of 2024.

“We’re seeing more Chinese manufacturers relocating to Mexico than ever before,” noted the president of Redwood Mexico. Chinese-owned 3PLs in Mexico are also playing a key role in smoothing this workaround.

U.S. buyers are noticing. Many now ask international suppliers to use non-tariffed materials or re-engineer their products to fall into a lower duty bracket. These adjustments are strategic—and expected.

For some, the answer is nearshoring. For others, it’s final assembly on U.S. soil. Either way, the message is clear: what got you into the U.S. market may not be what keeps you there.

How Leading Suppliers Are Reducing Their Exposure

The suppliers who are still growing in the U.S. are the ones who started shifting gears early.

• Some moved the final assembly to Mexico to qualify for tariff exemptions. 
• Others partnered with U.S.-based 3PLs to speed up delivery and reduce cross-border friction. 
• A few simply began holding more inventory in U.S. warehouses, buying themselves breathing room when policy changes hit.

Most suppliers can’t afford to reinvent their entire operation overnight. But adding one new node to your supply chain? A small U.S. warehouse, a better 3PL, someone local who can receive, kit, or even label goods? That’s doable. And it gives you options.

For example, one supplier in home appliances moved last-stage assembly to Texas and qualified their product as “U.S.-made,” cutting tariff costs by 20% and unlocking new retail channels.

At CrossBridge, we’ve helped international suppliers test the waters in the U.S. by setting up warehousing, fulfillment, and compliance infrastructure that doesn’t require massive up-front investment. For many, it’s the edge they need to stay in the game, while others hesitate.

Book a free 30-minute strategy call.

Small Supply Chain Tweaks That Lead to Big Savings

You don’t need to overhaul your entire operation. But you do need to identify where your cost leaks are.

We’ve seen suppliers protect their margins not by cutting quality, but by bundling SKUs, repackaging product lines, or shifting key components to lower-tariff materials. A small change upstream can ripple into big savings downstream.

One supplier we worked with sold bathroom accessories. Shipping fully assembled pieces exposed them to high tariff rates. So we helped them change how they packed: shipping knobs and brackets separately, with final assembly happening locally. It was a simple switch that shaved off more than 18% in duty costs.

Others are rethinking how they price altogether. Instead of absorbing tariff costs, they’re creating flexible pricing models with buyers, offering better terms in exchange for volume commitments, longer contracts, or co-investment in logistics.

You could even go further—maybe shift the labeling or packaging to a U.S.-based partner. Maybe offer exclusive SKUs to your U.S. buyers that follow a more efficient tariff category. 

What Retailers and Buyers Expect From You Now

Retailers are under pressure too—from inflation, from competition, and from customers demanding fast, reliable delivery.

They expect suppliers to:

• Hit delivery windows
• Avoid chargebacks
• Integrate with their backend systems (EDI, compliance portals)

They want to know you can deliver on time, that your barcodes scan properly, that your invoices are clean, and that you understand their routing guides and chargebacks.

In short: they want suppliers who don’t cause headaches.

At CrossBridge, we’ve seen how small improvements in backend operations—like EDI compliance, OTIF tracking, and streamlined accounting—can help suppliers build real trust with their buyers. 

Another small example could be setting up a domestic returns address or final inspection point. These details build trust.

It’s not flashy work, but it’s what makes a supplier indispensable.

Actionable Moves You Can Make This Quarter

Many suppliers are rushing to ship inventory ahead of the tariff freeze ending. Container rates from China to the U.S. have jumped from $3,500 to over $6,500 in recent weeks. If you plan to ship, do it strategically—and soon.

If moving production isn’t realistic right now, don’t worry. There are still high-impact moves you can make:

• Partner with a U.S.-based 3PL to store and ship your most active SKUs.
• Revisit landed costs and make sure you’re accounting for tariffs, freight, and compliance properly.
• Split shipments strategically to delay tariffs or reduce exposure.
• Offer pricing flexibility to retailers by tying discounts to volume or prepayment.
• Ship components instead of finished goods, then assemble locally to qualify for better tariff treatment.

Think of it like tuning a machine. You don’t need to build a new one. You just need to adjust a few settings and watch the whole thing run smoother.

And if you don’t know where to start, that’s where we come in. We’ve walked dozens of suppliers through these changes—quietly, effectively, and without disrupting their existing business. Book a free 30-minute strategy call.

Control, Speed, and Visibility Matter More Than Ever

Cost used to be the only thing that mattered. Not anymore.

Retailers now care about stability.

Imagine your buyer is juggling 30 suppliers. Which one do they call first? The one who responds in five minutes, has inventory on hand, and hits every delivery window. Not the one who’s always explaining delays or is confused by the retail portal.

In this new environment, control beats cost. That means visibility, response time, and process reliability matter more than ever.

You don’t need to be tech-savvy to win here. You just need the right support. With the right ERP setup, a smart logistics partner, and a clear playbook, you can offer retailers exactly what they want, without guessing.

Final Word: Don’t Wait for Things to Calm Down

We know the instinct. Hold off. Wait for the tariffs to get lifted. Things may calm down.

Waiting worked in 2019. It doesn’t anymore.

In our experience, suppliers and product brands that are winning are doing the opposite.

They’re setting up a small warehouse. They’re rerouting just part of their shipments. They’re trialing new packaging workflows or adding one U.S. team member to handle compliance. They're not gambling on the future—they're being proactive.

If you’re ready to adapt but not sure where to start, we help suppliers set up lean, scalable U.S. operations—without the usual friction.

Book a free 30-minute strategy call and let’s map out your next move.