To all of our industry partners,
As we are well aware, the current tariff policy implemented over the last few months by the Trump Administration has generated quite a bit of turmoil in our global economy and manufacturing landscape. It’s characterized by a high degree of uncertainty and is very much an evolving situation. This letter is written to outline what we’ve been working on to mitigate the financial implications of this situation.
For those of you who read our eNewsletter, we’ve been providing frequent updates on the status of this policy and its implications. We have been keeping very close track of the developments, and as an importer of record with the U.S. Customs and Border Protection, our in-house freight specialist is very well versed in the nuances of how the tariff rates are calculated.
Currently, the tariff rate on China-produced products stands at 145%, with additional percentages for products or materials that fall into certain categories. Tariffs that have been levied on a multitude of countries around the world have now been paused until July 9th.
Here are several strategies we’re employing to offer as much flexibility and financial support to you as possible:
- Our production in China continues, and we can hold finished inventory for our customers. Once the tariff rate on China-produced products is resolved to a more reasonable level, we are poised to initiate container bookings and secure sailings as quickly as possible.
- We’re underway with manufacturing in Vietnam. We see this as a long-term strategy. And while the tariff rate on Vietnam-produced products has currently been paused, if and when it returns, we expect that it will likely be at a lower level than where the China tariff policy will end up. Our manufacturing capabilities in Vietnam center around printing. Injection molding (of certain components), vacuum forming, and wood is also common and can be supplied. Certain other components, however, will likely still need to be produced/sourced in China and then shipped to Vietnam. We are well-positioned to execute on strategy- many products in Vietnam currently use raw materials sourced throughout China (they share a border after all). Also, Vietnam has 163 international shipping ports, and in 2024 exported $136.6 billion in goods to the U.S.
- We can assist with your product development strategies to help mitigate the cost per unit that the tariff rate represents. In other words, we can assist with aggressive raw material sourcing for cost reductions, avoiding certain materials and components that trigger incremental tariff expenses, and support product design to maximize manufacturing cost savings and shipping efficiencies.
For almost 30 years now, GPI has steadily broadened our manufacturing, sourcing, and logistics expertise. We have a great deal of experience and can offer creative solutions to provide the highest benefit to our customers. And, we’re just a phone call away. Please contact us to learn how our solutions may be of the highest benefit to you in these challenging times.
Michael Fisher: Michael@madebygpi.com
Arianne Hutchins: Arianne@madebygpi.com
Al Ullman: Al@madebygpi.com
Derek Weston: Derek@madebygpi.com
Sincerely,
Michael Fisher
President
Grand Prix International, Inc. (GPI)
