{"id":18383,"date":"2025-04-04T15:47:10","date_gmt":"2025-04-04T22:47:10","guid":{"rendered":"https:\/\/www.fictiv.com\/?post_type=cpt_blog&#038;p=18383"},"modified":"2025-08-05T12:54:10","modified_gmt":"2025-08-05T19:54:10","slug":"fictiv-ceo-dave-evans-walks-through-the-latest-tariff-news-and-discusses-mitigation-strategies","status":"publish","type":"cpt_blog","link":"https:\/\/www.fictiv.com\/articles\/fictiv-ceo-dave-evans-walks-through-the-latest-tariff-news-and-discusses-mitigation-strategies","title":{"rendered":"Tariffs: Finding the Way Forward\u00a0"},"content":{"rendered":"\n<p><\/p>\n\n\n\n<p>I\u2019d like to take you back to my days as a Division I rower at Stanford. For many college athletes, you spend thousands of training hours on the water for a race that takes mere minutes. What does this have to do with tariffs? Let me explain. As you navigate tariffs, you want to find experts who\u2019ve been training for years for the changes that are happening daily. Experts to help you overcome supply chain disruptions &#8211; to mitigate massive risk \u2014 who have spent over a decade building out a global network of manufacturing centers in <a href=\"https:\/\/www.forbes.com\/sites\/daveevans\/2024\/05\/20\/indias-rise-in-the-global-supply-chain\/\">India<\/a>, <a href=\"https:\/\/www.forbes.com\/sites\/daveevans\/2024\/11\/26\/chinas-crossroads-challenges--opportunities-for-the-worlds-factory\/\">China<\/a>, <a href=\"https:\/\/www.forbes.com\/sites\/daveevans\/2024\/07\/16\/building-resiliency-why-mexico-is-crucial-to-the-us-reshoring-strategy\/\">Mexico<\/a>, and the <a href=\"https:\/\/www.forbes.com\/sites\/daveevans\/2024\/10\/16\/powering-progress-how-us-manufacturing-drives-innovation-and-growth\/\">U.S. <\/a>\u2013 experts who can help you get ready for race day.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-the-race-is-on\">The Race is On<\/h2>\n\n\n\n<p>Tariffs are <a href=\"https:\/\/www.nytimes.com\/live\/2025\/04\/02\/business\/trump-tariffs-liberation-day\">making<\/a> headlines every day. In the past few weeks alone, Fictiv has been interviewed by <a href=\"https:\/\/www.usatoday.com\/story\/money\/2025\/03\/31\/trump-tariffs-benefits-costs\/82700560007\/\">USA Today<\/a>, <a href=\"https:\/\/www.investors.com\/news\/technology\/medical-stocks-supply-chain-tariffs\/\">Investor\u2019s Business Daily<\/a>, <a href=\"https:\/\/www.supplychainbrain.com\/articles\/41391-survey-trade-wars-becoming-new-normal-for-supply-chains\">SupplyChainBrain<\/a>, <a href=\"https:\/\/www.manufacturing.net\/supply-chain\/blog\/22934915\/tariffs-balancing-the-certainty-of-shortterm-pain-with-potential-longterm-gain\">Manufacturing.net<\/a>, <a href=\"https:\/\/www.investors.com\/news\/technology\/biotech-stocks-tariff-europe-ireland\/\">and more<\/a>.<\/p>\n\n\n\n<p>For over 10 years <a href=\"http:\/\/www.fictiv.com\">Fictiv has envisioned<\/a> a world where creation has no barriers. Where the idea of building a rocket, solving climate change, and inventing the next lifesaving medical device can all be created with ease. Nate and I founded Fictiv to simplify sourcing and eliminate the major bottlenecks in supply chain and manufacturing. <strong>&nbsp;I\u2019m reaching out today to help guide you through today\u2019s volatile trade landscape.<\/strong><\/p>\n\n\n\n<p>What we\u2019re hearing from customers and from our <a href=\"https:\/\/www.fictiv.com\/ebooks\/2025-state-of-manufacturing-report\">10th Annual State of Manufacturing and Supply Chain Report<\/a>:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>95% say they\u2019re worried about tariffs and expect a trade war.<\/li>\n\n\n\n<li>77% lack resources to manage their supply chains; and&nbsp;<\/li>\n\n\n\n<li>68% plan to onshore to the U.S. with over half looking at <a href=\"https:\/\/www.engineering.com\/common-misconceptions-about-injection-molding-versus-additive-manufacturing\/\">nearshoring to Mexico<\/a>.<\/li>\n<\/ul>\n\n\n\n<p>Few supply chain teams have the resources to manage their existing supply chains, let alone handle them during massive disruptions like tariffs. &nbsp;<a href=\"https:\/\/www.linkedin.com\/pulse\/tariff-whiplash-dave-evans-gvfec\/\">Everyone is left flat-footed<\/a>, and very few people understand what\u2019s been happening in the last week alone.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-tariffs-101\">Tariffs 101<\/h2>\n\n\n\n<p>Here are a few of the questions we\u2019ve been hearing from customers in the last few weeks.<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>What different types of tariffs are there?<\/li>\n<\/ol>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Section 301 which is applied for \u201cunfair trade practices\u201d<\/li>\n\n\n\n<li>Section 232 which is applied for \u201cnational security\u201d reasons<\/li>\n\n\n\n<li>IEEPA (International Emergency Economic Powers Act) which is applied for public health or national security reasons<\/li>\n<\/ul>\n\n\n\n<ol start=\"2\" class=\"wp-block-list\">\n<li>Are the new reciprocal tariffs cumulative?<\/li>\n<\/ol>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Yes, but there are exclusions<\/li>\n<\/ul>\n\n\n\n<ol start=\"3\" class=\"wp-block-list\">\n<li>Do the new reciprocal tariff have exclusions?<\/li>\n<\/ol>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Yes, if there is a Section 232 tariff then the reciprocal tariff will not apply<\/li>\n<\/ul>\n\n\n\n<ol start=\"4\" class=\"wp-block-list\">\n<li>What is the impact if I am importing an aluminum part from China?<\/li>\n<\/ol>\n\n\n\n<ul class=\"wp-block-list\">\n<li>What rate applies and how much?&nbsp;<\/li>\n\n\n\n<li>Aluminum does have a Section 232 tariff so the new reciprocal tariff will not apply. Aluminum will retain the original tariff rate which has a general duty (2.5%), Section 301 (25%), IEEPA (20%), and Section 232 (25%) for approximately a 72.5% rate<\/li>\n<\/ul>\n\n\n\n<p>For more on tariffs, check out our <a href=\"https:\/\/www.fictiv.com\/articles\/tariffs-101-qa-a-guide-for-manufacturers\">Tariffs 101 article<\/a>. This is the first in a series of articles designed to keep you up to date on the latest tariff news.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-is-onshoring-the-answer\">Is Onshoring the Answer?<\/h2>\n\n\n\n<p>For those considering onshoring to the U.S., it\u2019s important to recognize that this isn\u2019t always a straightforward solution to avoiding tariffs. While reshoring is a desirable goal\u2014especially with 68% of manufacturing and supply chain leaders expressing interest in bringing production back to the U.S.\u2014I believe it\u2019s essential to maintain access to global sourcing regions. A balanced, flexible approach is key.<\/p>\n\n\n\n<p><a href=\"https:\/\/www.forbes.com\/sites\/daveevans\/2024\/10\/16\/powering-progress-how-us-manufacturing-drives-innovation-and-growth\/\">U.S. manufacturing<\/a> is on the upswing but the race is on to rebuild America\u2019s supply chain infrastructure\u2014and fast. For OEMs and manufacturers to thrive in this new era, embracing advanced manufacturing, automation, and new technologies is no longer optional\u2014it\u2019s essential. Not surprisingly,<strong> 90% of manufacturing and supply chain leaders <\/strong>are already experiencing the <a href=\"https:\/\/www.fictiv.com\/ebooks\/2025-state-of-manufacturing-report\">benefits of digital manufacturing<\/a>. Especially important since the U.S. simply does not have the labor pool required to sustain large-scale production growth without the aid of advanced manufacturing solutions.&nbsp;<\/p>\n\n\n\n<p>Fictiv recognizes the challenges and the benefits of strengthening U.S. manufacturing. That\u2019s why we\u2019re hosting the inaugural, invite-only <strong>U.S. Manufacturing Revitalization Summit <\/strong>in May. Please <a href=\"mailto:chuck.conley@fictiv.com\">reach out<\/a> if you want a seat at the table.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-tariff-mitigation-starts-now-resources-you-can-use\">Tariff Mitigation Starts Now: Resources You Can Use<\/h2>\n\n\n\n<p>Fictiv is uniquely positioned to help ensure you have the tools, technology, and expertise needed to navigate this evolving landscape and <a href=\"https:\/\/www.linkedin.com\/pulse\/tariff-whiplash-dave-evans-gvfec?trk=news-guest_share-article\">to navigate tariffs<\/a>. We\u2019ve developed the following resources to help you manage tariffs today.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-fictiv-s-5-point-tariff-mitigation-strategy\">Fictiv\u2019s 5-Point Tariff Mitigation Strategy<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>First Sale:<\/strong> Businesses can reduce tariffs by using a lower value for imports since companies can use the price paid in the first sale. This allows the earlier sales value to be used in declaring customs value as long as that sale can be documented as a sale for export to the U.S. and the importer meets all other custom requirements.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Tariff Engineering:<\/strong> Refers to the process of designing, manufacturing or altering a product in a way that legally reduces the applicable tariff. By engineering the product&#8217;s characteristics, such as its composition or assembly method, companies can qualify their products for a more favorable HTS classification (Harmonized Tariff Schedule\u2014a system used to classify and define goods being imported or exported internationally).<\/li>\n\n\n\n<li><strong>Country of Origin:<\/strong> This involves manufacturing the part in a country with more favorable tariff impacts for that particular HTS classification.&nbsp;<\/li>\n\n\n\n<li><strong>Free Trade Zone (FTZ)\/Bonded Warehouse<\/strong>: This involves establishing a staging location for parts\/products in order to delay the actual import. It allows businesses to re-assemble or alter products to meet lower tariff designation.<\/li>\n\n\n\n<li><strong>Duty Drawback:<\/strong> This enables businesses to pay duty up front. Once it\u2019s re-exported outside of the U.S., businesses can file for duty reimbursement.&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>Making sure you have this level of technical institutional knowledge is critical. And if you don&#8217;t have that expertise, partnering with other companies that do will help mitigate tariffs and other supply chain disruptions.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-why-fictiv-nbsp\">Why Fictiv&nbsp;<\/h2>\n\n\n\n<p>If you have questions or need help, we offer a tariff concierge service to walk you through what the tariffs mean for your business, and what duties you can expect to pay by material, global region, and trade agreements.<\/p>\n\n\n\n<p>This is race day &#8211; It all comes down to who can help you find a way forward &#8211; regardless of what happens next.<\/p>\n\n\n\n<p>Additional Resources:<\/p>\n\n\n\n<p><a href=\"https:\/\/help.fictiv.com\/en\/articles\/11038439-tariffs-101-q-a-a-guide-for-manufacturers\">Q&amp;A Tariffs 101<\/a><\/p>\n\n\n\n<p><a href=\"https:\/\/www.fictiv.com\/articles\/tariff-notes-strategies-for-tariff-proofing-your-supply-chain\">Strategies for Tariff-Proofing Your Supply Chain<\/a><\/p>\n\n\n\n<p><a href=\"https:\/\/www.fictiv.com\/help\/placing-an-order\/guide-to-international-shipping\">Guide to International Shipping<\/a><\/p>\n\n\n\n<p><a href=\"https:\/\/help.fictiv.com\/en\/articles\/11005497-understanding-section-232-tariffs\">Understanding Section 232 Tariffs<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>I\u2019d like to take you back to my days as a Division I rower at Stanford. For many college athletes, you spend thousands of training hours on the water for a race that takes mere minutes. What does this have to do with tariffs? Let me explain. As you navigate tariffs, you want to find [&hellip;]<\/p>\n","protected":false},"author":40,"featured_media":18384,"parent":0,"menu_order":0,"template":"","fictiv_role":[],"fictiv_topic":[],"fictiv_industry":[],"fictiv_manufacturing_process":[],"coauthors":[43],"class_list":["post-18383","cpt_blog","type-cpt_blog","status-publish","has-post-thumbnail","hentry"],"aioseo_notices":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.2 (Yoast SEO v24.2) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>2025 Tariff Strategy Guide: How to Mitigate Supply Chain Risk<\/title>\n<meta name=\"description\" content=\"Worried about new U.S. tariffs? 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