Tariff Mitigation Strategies

Section 301 tariffs on China impact billions in imports, adding costs on top of baseline and reciprocal duties. For U.S. companies sourcing electronics, plastics, metals, or textiles, that means higher landed costs and shrinking margins. This guide covers how to identify tariff exposure, check for exclusions, and apply proven strategies to protect your margins.

What's inside

• Tariff engineering: adjust classification and design to legally reduce duty
• Foreign Trade Zones (FTZ): defer, reduce, or eliminate duties on qualifying goods
• Duty drawback programs: recover duties paid on re-exported goods
• First Sale for Export: base duty on the first sale price, not the final invoice
• Supply chain diversification: nearshoring to Mexico or shifting to Vietnam
• HTS code accuracy: correct classification to avoid overpaying
• Case study: a Plan B mold strategy where an $18k mold returned $480k/year in savings

Talk with a tariff expert, or submit a sourcing request for a tariff-aware plan.