07 Apr US Tariffs Are Driving Up Costs — Is Your Supply Chain Ready?
Buying from the USA? Your supply chain is about to get a lot more expensive!
Here’s why:
Let’s say a backpack is made in Vietnam for $5.
It sells in the USA for $10.
In the USA, it costs $12 to manufacture a backpack, so production is outsourced.
Now, if the USA adds a 150% tariff on imported backpacks, the Vietnamese backpack would cost $12.50 in the USA.
American factories can now compete and sell backpacks for $14 to make a profit.
What does this mean?
Americans pay $14 instead of $10 for the same backpack.
US companies struggle to export their $14 backpacks, as the rest of the world can still buy them for $5 elsewhere.
The USA’s global competitiveness declines while domestic prices rise.
If your supply chain relies on the USA, prepare for rising costs.
Now is the time to diversify your sourcing.
At Liya Solutions, we help companies around the world find high-quality, cost-effective suppliers in China.
Stay competitive — source smarter.
