Rising USA Tariffs-Diversifying your supply chain

Diversify your supply chain

The old saying “Don’t put ALL your eggs in one basket” applies when creating a reliable and flexible supply chain for your foreign produced goods. Many are quickly learning that over reliance on one country ie “China” as the sole manufacturer of your products can be a risky endeavor in todays geopolitical environment. This is why USA importers must create alternative avenues of production in foreign countries that have more amenable relationships with the US.

Multi pronged approach

Having a multi pronged supply chain in place ( suppliers in multiple locations and countries) allows for a stronger business model that is less effected by varying economic and geo political events. Discovering new avenues of production in countries besides your main supplier ( ie China)  may result in even higher quality product offerings to your customers. You may also find exciting new opportunities arise from taking advantage of the various trade deals between the USA and friendlier partner nations.

Which countries should I consider?

-Countries that are part of free trade zones and free trade agreements with the USA are the most amenable for USA importers. Your business will benefit from no/lower tariffs and much lower barriers to entry. Your business can scale up long term without the worry of a trade dispute or currency manipulation affecting your supply chain and your bottom line.

-Countries that are traditional allies with the United States of America are always good choices when it comes to building quality products and creating strong working relationships with suppliers.

-Consider language barriers and ethical differences in the way countries treat their workers.

-You may find working with a partner in a closer time zone makes it easier to do business.

Bottom line-Flexible and Agile supply chains=stronger business

Multiple avenues of quality production across the globe allow businesses to scale and respond much faster than those reliant upon “one source”. Be stronger and more responsive to your customers needs. Reap the benefit of better/stronger relationships with your suppliers. Remember, although China has been a somewhat reliable source for goods in the past…it is far from perfect and not the ‘only fish in the sea”. Research companies throughout the globe who offer similar products and reach out to these potential partners for RFQ’s. Diversity in your supply chain can soon be your strength when it comes to importing goods to the USA.

World Class Shipping can help you diversify your supply chain and become less vulnerable to trade disputes and geopolitical events. Call us today for immediate assistance and in these matters and more. 


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