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Exploration of strategies for enterprises to reduce losses under Sino-US trade frictions

Time:2025-04-10

Against the background of the continued fermentation of Sino-US trade frictions, how enterprises can effectively respond and minimize the losses caused by policy changes has become an important issue facing many import and export enterprises. The following strategic suggestions are put forward from multiple dimensions to help enterprises move forward steadily in a complex and changing market environment.


1. Select manufacturers and strictly control quality and delivery time


Faced with the frequent adjustments of tariff policies, the traditional procurement model that relies on Chinese wholesalers faces many uncertainties. The Trump administration announced a reciprocal tariff policy in April, which instantly exacerbated the tense atmosphere in the market. For companies that have placed orders or whose goods are about to arrive at the port, the additional taxes and fees are undoubtedly a heavy burden. And if the supplier postpones shipment for various reasons, it will be even worse. Therefore, it is particularly important to choose a strong and responsive manufacturer or supplier.

Case sharing: As a leader in the industry, Yinyewang has achieved independent control of the production rhythm with its 13,000 square meters of self-owned factories and four efficient production lines. They not only strictly control product quality, but also regularly feedback production progress to keep customers informed of order dynamics. In addition, Yinyewang provides instant quotation and delivery confirmation services, which effectively shortens the decision-making cycle and reduces market risks.


2. Layout diversified supply chains to avoid tariff barriers


With the Trump administration's announcement of a 90-day suspension of reciprocal tariffs except for China, companies have ushered in a new window of opportunity. For companies seeking to reduce tariff costs, cooperating with factories with production bases in Southeast Asian countries such as Vietnam and Thailand has become a feasible path. With their geographical advantages, these factories have successfully transferred part of the industrial chain to low-tariff or tax-free areas, thereby effectively avoiding high tariffs.

Strategic recommendations:

In-depth research: When choosing a cooperative factory, be sure to conduct a detailed due diligence to ensure that the factory's strength and reputation coexist, and avoid falling into the trap of false listing.

Optimize logistics: Re-evaluate transportation and freight forwarding solutions to ensure that goods can arrive at their destination efficiently and safely, while considering the balance between tariff costs and transportation time.

Risk warning: Establish a dynamic monitoring mechanism for tariff policies to respond to possible policy changes in a timely manner and reduce losses caused by uncertainty.


3. Innovate the trade model and choose DDP transaction


Under the traditional FOB (free on board) trade model, the buyer needs to bear all risks and costs after the goods cross the ship's side, including tariffs, value-added tax, etc. In the context of Sino-US trade frictions, this model undoubtedly increases the cost burden of the buyer. In contrast, the DDP (Delivered Duty Paid) transaction method is more flexible and advantageous.

DDP full name analysis: DDP, that is, delivery after duty paid, means that the seller hands over the goods to the buyer at the designated destination, and at the same time bears all risks and costs of transporting the goods to the designated place, including all customs procedures and tariffs, value-added tax and other taxes required for the export and import of goods.

Advantage analysis:

Reduce buyer costs: Under the DDP model, tariffs and other taxes are borne by the seller, and the buyer no longer needs to worry about tariff issues, thereby reducing procurement costs.

Simplify the process: The seller is responsible for handling all customs procedures, and the buyer only needs to receive the goods at the designated location, which simplifies the transaction process and improves efficiency.

Enhance competitiveness: For sellers, providing DDP services can attract more buyers seeking to reduce tariff costs, thereby enhancing market competitiveness.

Implementation suggestions:

Clear terms: Clarify DDP terms in the contract, including key elements such as the place of delivery, tax and fee assumption, and risk transfer.

Choose reliable partners: Cooperate with logistics service providers with rich DDP operation experience to ensure the safety and timely delivery of goods.

Pay attention to policy changes: Pay close attention to the dynamics of Sino-US trade policies and adjust trading strategies in time to cope with possible policy changes.


IV. Strengthen risk management and build a diversified market layout


In addition to the above strategies, companies should also strengthen risk management awareness and build a diversified market layout. By expanding emerging markets, developing new product lines, and enhancing brand influence, reduce dependence on a single market and enhance the company's risk resistance.

Specific measures:

Market research: Regularly conduct research and analysis on emerging markets to understand market demand, competitive situation and policy environment.

Product innovation: Increase R&D investment, launch new products that meet the needs of emerging markets, and enhance market competitiveness.

Brand building: Strengthen brand publicity and promotion, enhance brand awareness and reputation, and enhance consumer loyalty.