Working Around U.S. Tariffs: 6 Practical Strategies for Importers Selling Domestically

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Tactics to Protect Margin, Cash Flow, and Competitiveness in a 100 %-Tariff World


Why This Matters in 2025

Tariffs on Chinese and other foreign goods now top 100 % in several categories. Import-heavy companies are watching margins erode overnight.

You can’t change U.S. trade policy, but you can change your playbook.

Below are six legal, field-tested tactics I’ve used—or seen smart operators use—to cut, defer, or offset duties while continuing to sell in the U.S. market.

Strategy 1 — Delivered Duty Paid (DDP)

Shift liability (and declared value) to the supplier.

Effort Savings Snapshot
Low ~$1,750 saved on a $10,000 shipment

How it works
Your supplier ships DDP and declares a lower customs value. Example: Supplier invoices you $10,000 but files $3,000. A 25 % tariff is now $750, not $2,500.

Watch-outs

  • Partner only with reputable factories.

  • CBP audit risk sits with the importer of record (the supplier under true DDP).

Strategy 2 — Unbundle the Components

Ship parts under lower HTS codes; finish assembly in the U.S.

Effort Savings Snapshot
Moderate ~$20,000 saved per $100,000 of treadmills

How it works
Motors, frames, and consoles each clear customs at 3–5 %. Once they land, you assemble domestically and avoid the 25 % rate on finished treadmills.

Best for complex products—fitness, furniture, appliances—where assembly is straightforward.

Strategy 3 — First-Sale Rule

Declare duty on the manufacturer price, not the final resale price.

Effort Savings Snapshot
Low ~$500 saved per $7,000 shipment

How it works
Manufacturer sells to a trading company for $5,000. Trading company sells to you for $7,000. With proper paperwork, CBP accepts the first sale value ($5,000) for duty.

Fully legal—documentation must prove the arm’s-length first transaction.

Strategy 4 — Tariff Engineering

Modify the product to slide into a lower-duty classification.

Effort Savings Snapshot
Moderate 8 %+ duty cut per unit (apparel example)

How it works
Change fabric weight, add a pocket, alter board thickness—just enough to fall under a lower-tariff HTS code. Common in apparel, electronics housings, even footwear (Converse’s “felt slipper” precedent).

Requires R&D + new BOM, but ROI compounds on every container.


Strategy 5 — Stockpile Ahead of Hikes

Pull forward inventory before announced tariff bumps.

Effort Savings Snapshot
Low $100,000 saved on $1 M inventory

How it works
If a 10 % hike hits July 1, import June 30. You lock in old rates, then ride out new ones. Works if you have predictable sell-through and storage capacity.

Strategy 6 — Bonded Warehousing

Defer duty until goods exit a CBP-bonded facility.

Effort Savings Snapshot
High $75,000 duty deferred on $500,000 inventory

How it works
Goods enter a bonded warehouse duty-free. You pay tariffs only when inventory ships to domestic customers, preserving cash flow.

Ideal for >$500K monthly imports, long inventory turns, or re-exports (drawback eligible).

Quick-Glance Matrix

Top 5 Practical Tariff Reduction Strategies for U.S. Importers (Selling Domestically)

Final Recommendations

  1. Grab the low-hanging fruit first (DDP, First Sale, Stockpile).

  2. Layer in mid-effort tactics (Unbundling, Engineering) as volume grows.

  3. Use bonded warehousing only when scale justifies setup and compliance.

Even a 2-3 % landed-cost improvement can add seven figures of profit over a year. In a 100 % tariff environment, it might be the difference between growth and collapse.

Need help sizing the ROI or navigating CBP compliance?

📩 DM Luke Peters on LinkedIn

Luke built an $80 M consumer-product brand, sold it to PE, and now helps founders defend margin, scale smart, and prep for exits.