Tariff Whiplash: How is it Affecting Your Quality Control?

Caught in Tariff Whiplash?

In this conversation, we unpack the rollercoaster that is the U.S.-China trade relationship—and how it’s turning supply chains upside down. As tariffs spike, pause, and shift again, companies are scrambling to protect product quality while working to adjust their sourcing strategies.

We dive into:

• Why cutting corners on quality during trade turbulence is a dangerous gamble
• What to watch out for when shifting production to new countries like Vietnam, India, or Mexico
• How to vet new suppliers to avoid compliance disasters
• And why now is not the time to loosen up on inspections or skip testing “just this once”

The bottom line? Uncertainty isn’t going away. But with the right systems in place, your quality program doesn’t have to flinch every time headlines change.

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Transcript (Modified)

Billy Miner:
If you’ve been trying to keep up with the U.S.–China trade situation this year, you’re not alone. Everyone’s been talking about it—and for good reason. Tariff policies have shifted constantly, and the ripple effects have hit supply chains hard.

In this video, we’re discussing the latest developments following the recent London meeting, and what they mean for your quality control strategy.

Trade Talks and Tariff Whiplash

U.S. and Chinese representatives met in Switzerland last month and agreed to a 90-day pause, rolling back tariff percentages. Now, after a follow-up meeting in London, things appear to be stabilizing, with a total tariff of 55% on goods coming from China.

But the constant back-and-forth has created a kind of “tariff whiplash.” Factories in China were ramping down production, then ramping up again just as quickly—leading to instability that affects quality management.

Importers rushed to place orders while the pause lasted, unsure of what might happen next. That uncertainty poses real challenges for quality control.

How Tariffs Impact Factory Quality

Andy Church:
Tariff whiplash is definitely the theme this spring. One concern our clients keep raising is whether their factories are maintaining quality, especially as everyone looks to cut costs. Even if companies pass some tariffs on to consumers, they’re still worried about factories using lower-quality or cheaper materials.

When factories shut down, many workers were sent home or left for other jobs. Now that things are picking back up, some factories lack qualified workers trained for the tasks they were doing before.

That’s why inspections are so critical right now—along with testing raw materials and components to ensure regulatory compliance. It’s essential to maintain your quality program through all this unpredictability.

The Shift to “China Plus One”

Billy:
So far, we’ve talked about U.S.–China trade and Chinese production, but many companies have been diversifying their manufacturing locations. This isn’t a brand-new trend, but it’s accelerated recently.

Most consumer goods brands aren’t seriously considering a move to U.S. manufacturing. Instead, they’re looking at “China Plus One” strategies—expanding production into Vietnam, India, Cambodia, or Mexico.

At Insight, we’ve seen many clients take this path. So Andy, what do you see as the biggest quality and compliance risks when companies move production to a new country?

Quality Risks When Switching Countries

Andy:
There are several. One major risk is that the new factory might not have experience producing for the U.S. market. That includes a lack of familiarity with regulatory compliance requirements.

This gap can be addressed by sharing requirements clearly and maintaining a robust testing program. It’s also critical to conduct due diligence—ensuring that a factory has both the capability and capacity to meet your needs.

Many factories are overwhelmed with sample and quote requests and might say “yes” to everything. But if they lack the bandwidth to actually fulfill those orders properly, your quality suffers.

Maintain your inspection program—whether that’s incoming materials, in-line inspections, or final random checks before shipping. Don’t grant waivers or make one-off exceptions. That’s a slippery slope.

What to Look for When Vetting a Factory

Billy:
Let’s get specific. What should companies look for during the factory vetting process?

Andy:
Great question. Here’s a checklist of what we focus on during due diligence audits:

• Licensing: Does the factory have the right legal scope to make and export your product?
• Capability: Can they really make the product to your specifications?
• Capacity: Do they have the resources to handle your order volume?
• Quality Processes: Are there real systems in place, not just a dusty quality manual on a shelf?
• Samples & Documentation: Are there product samples in various production stages?
• Internal QC: Is there an active internal quality control team inspecting throughout?

Finding a factory is one thing. Ensuring they can meet your ongoing needs is another. That’s where a strong quality program becomes essential.

Preparing for the Unexpected

Billy:
The tariff situation may seem stable right now—but we’ve seen how fast that can change. How should quality and compliance teams prepare without overreacting to every headline?

Andy:
Stay the course. Don’t let tariff fluctuations dictate your quality strategy.

Keep doing inspections, testing, and audits regularly—whether that’s annually, biannually, or whenever you add a new supplier. The key is consistency. If your quality program is solid, there’s no need to panic every time a new tariff is announced.

Final Advice for Importers

Billy:
If you had to give just one piece of advice for importers right now, what would it be?

Andy:
Take a deep breath. The headlines come fast, the policies shift often, and the uncertainty can feel overwhelming.

But your factory probably isn’t going to cut its prices, and your client probably doesn’t want to pay more. So you have to find a way to keep products moving and protect your margins.

Breathe. Stay focused. Stick to your quality program.

Wrap-Up

Billy:
Thanks, Andy, for breaking that down.

If this helped you think differently about quality management in today’s trade climate, give us a like, leave a comment, and hit subscribe so you don’t miss the next one.

And if you’re dealing with supplier risks or planning inspections in a new country, reach out to us at Insight Quality. We’re here to help you get the clarity you need.