Are You Ready for the End of the Tariff Pause? (Supply Chain Signals)

Welcome to the latest Supply Chain Signals video, where we discuss the latest news affecting consumer-product importers and the issues that impact product quality and compliance. Today, we cover three topics:

1. The end of the 90-day tariff pause between the U.S. and China, and how companies are responding.
2. How production monitoring can help ensure high-quality products.
3. Ideas for managing inventory-replenishment cycles.

Here’s a transcript.

The 90-Day Tariff Pause

Billy:
The 90-day tariff pause between the U.S. and other countries ends soon. Opinions vary on what happens next. Andy, what might we see, and how should importers prepare?

Andy:
Companies importing from overseas are anxious about what follows the initial 90-day pause.

Only three countries have deals with the U.S., and those agreements lack clarity—especially with China.

The new Vietnam deal sets a 20 % tariff and a 40 % transshipment rate. Clients are still asking whether raw materials count as transshipment or whether goods must undergo significant manufacturing.

When the pause began in mid-April, many firms rushed shipments, causing ongoing disruption. Expect similar behavior once Vietnam orders stabilize.

Importers should explore alternative sourcing options, either outside of China or from Vietnam to other lower-cost countries, and maintain contingency plans.

Retail partners aren’t accepting many tariff-driven price hikes, so importers must absorb costs or negotiate with factories. Customs bills the importer, not the factory.

Uncertainty remains high. One apparel client sourcing from Vietnam worries that the transshipment rule may apply to fabric from China, which supplies 100% of their raw materials. Keep alternative plans ready and discuss cost-sharing with factories.

Bottom line: chaos and uncertainty persist, and firms must stay nimble.

Production Monitoring vs. Traditional Inspections

Billy:
Production monitoring is becoming a big trend with our clients. Andy, what is it, and why use it beyond standard inspections?

Andy:
Production monitoring encompasses more than just quality checks; it also addresses timing, communication, and factory processes.

Few service providers offer it, so we stepped in to meet client demand.

We review incoming raw materials, identify root causes, and work with factories on corrective actions.

The factory must welcome the service; improvements benefit all its customers.

It isn’t practical for very short runs (e.g., those completed in under a week). In such cases, an audit accompanied by a corrective-action plan is more effective.

Monitoring is ideal for specific SKUs with recurring issues. Insight can support this throughout Asia.

Managing Inventory-Replenishment Cycles

Billy:
Given tariff uncertainty and holiday timing, most companies should have already shipped their Q4 orders. Importers often struggle to establish an order cycle that maintains an appropriate flow of inventory throughout the year. How should they plan recurring orders?

Andy:
Inventory replenishment challenges everyone—from small e-commerce sellers to billion-dollar retailers.

Smaller firms may struggle more as sales accelerate. They must juggle tariff policies, peak shipping seasons, factory capacity, warehousing, and distribution-center constraints.

Sometimes holding costs drop if you ship early to a distribution center during its slow season—before holiday peaks.

One long-time client, selling a winter lawn-and-garden item, shifted production from late summer to right after the Chinese New Year, importing before the peak shipping season.

While shipping and warehousing aren’t Insight’s core services, inventory strategy has quality implications: Will cartons or poly bags withstand long-term storage? Are desiccant packs needed to prevent mold?

Smaller e-commerce clients should ask factories about slow periods, potential discounts for earlier production, and whether those savings can offset warehousing costs.

Coordinate with your factory, 3PL, and quality assurance provider to understand and address challenges as order frequency increases.

Closing

Billy:
That wraps up today’s topics. Andy, thanks for sharing your insights. Thanks for watching. If you found this helpful, please consider liking and subscribing.

Andy:
Questions or future-topic suggestions? Email us at info@insight-quality.com. One of my team members or I will respond. Sometimes a quick conversation solves an issue—and sometimes that leads to working together down the road. Reach out anytime!