Tariffs, Part 2: Your Next Supply Chain Moves (If You’re Playing Long-Term)

Hey there,

Last week, I sent an emergency update on the massive China tariff hikes—and how they could shake DTC margins overnight.

If you missed it, here’s the quick TL;DR:
📦 Tariffs are back—and they’re bigger than ever (some hitting 200%+)
🌏 China-heavy sourcing is now riskier and more expensive
 💸 DTC brands will feel the pinch harder than most

Now, here’s Part 2: what smart, long-term operators are doing next.

This isn’t about panic moves or short-term patches.
It’s about redesigning your supply chain so you’re not caught in the same vulnerable spot this time next year.

🔁 Shift from Reaction to Redesign

Here’s what to focus on:

✅ Run a Tariff Exposure Simulation

Don’t guess—get clear.
Start by mapping which SKUs and components are exposed. For each one, ask:

• Can I cut costs through redesign or supplier renegotiation?
  

• Can I shift production to a lower-tariff country?
  

• Can I start building a backup vendor now?

Understand the tariff stack:

• Baseline Tariff (10%)  - Applies to all imported goods entering the U.S., regardless of origin. Think of it as a universal “entry fee.”

• Reciprocal Tariff (125%) -Targets Chinese imports in response to trade tensions.

• Fentanyl-Linked Tariff (20%) - Broadly applies to Chinese imports, regardless of product relevance.

• Section 301 Tariffs (7.5%–100%)- Based on product category. Strategic sectors face the highest rates.

💡 Reminder: You can’t fix what you can’t see. Tariff visibility is the first step to smarter moves.

✅ Use “China-Plus-One” as the New Default

No, you don’t need to quit China cold turkey.
Not because you love it—but because an abrupt shift is risky and unrealistic.

Even with a full team, New Product Development (NPD) can take 1.5 to 3+ months. That’s too long to gamble with zero backup.

Instead, build a fallback:
Start testing small orders from Vietnam, India, Bangladesh, Cambodia, Mexico, Colombia—anywhere that gives you options.

This doesn’t just reduce risk—it gives you negotiation power and room to pivot.

✅ Reforecast Your Cashflow Now

Tariffs increase inventory cost. They extend lead times. They tighten cash.

If you don’t adjust your cashflow forecast now, you’ll feel it fast.

💡 Next Step:
Run “tariff vs. non-tariff” cashflow models across your top SKUs.

• How do terms, lead times, and landed costs change?
  

• What does it do to your working capital runway?
  

• Where can you push for early pay discounts or adjust order sizes?

✅ Tighten Your Freight Plan

Freight costs are rising again—and many brands aren’t watching closely.

Do a quick audit:

• Are you still stuck with expensive LCL shipments?
  

• Do you have backup lanes in case of port congestion?
  

• Can you renegotiate rates now before peak season?

🔁 Redundant lanes = fewer headaches later.
And it may be time to consider cross-docking or consolidating shipments if your volume allows.

✅ Add a Global Ops Arm (Full-Time, Part-Time, or Fractional)

You don’t need a massive team. You just need the right people watching the right things:

Consider fractional or remote roles like:

• A procurement analyst to explore alternative suppliers
  

• A freight coordinator to optimize routing and reduce delays
  

• A finance analyst/controller to model the real impact of new landed costs
  

• A supply chain lead to manage POs, vendor timelines, and production shifts
  

• An inventory planner to re-forecast across multi-country sourcing

🔧 Whether part-time, full-time, or agency-supported—this lean layer saves your in-house team hours every week and gives you real-time visibility where it matters most.

The Big Picture:

You don’t need to do a full rebuild.
But you do need to evolve.

Tariffs won’t be the last curveball.
Brands that move now?
They come out more resilient, more profitable, and way ahead of the pack.

Real Talk:
Back in 2019, I supported brands through the original Section 301 tariff crisis.
In 2020, I helped teams navigate factory shutdowns, freight delays, and total supply chain chaos during COVID.

This? You can absolutely get through.

And if you need help—
✅ A cost modeling template
✅ A sourcing trial plan
✅ Or someone to walk through your numbers with you

Just reply with “TARIFF” and I’ll send over what we’re using with our top clients right now.

Let’s stay ahead. Let’s keep moving.

— Lara
CEO & Supply Chain Partner
Move Supply Chain

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