How to Prepare Your Supply Chain for Upcoming Tariff Changes in 2025

Tariff threats are once again creating waves across global supply chains. While no policies have been confirmed as of now, the uncertainty alone is enough to stall decision-making. Many companies are taking a “wait and see” approach, but that strategy comes with some risks. 

When tariffs are announced, there’s typically little time to react. Lead times for shifting production, qualifying new suppliers, or moving tooling can stretch into months. If you wait to start exploring your options until after policies are implemented, you’re likely to get stuck paying higher landed costs while others move ahead.

Now is the time to prepare, not to make final decisions, but to get the information and options in place so you can act quickly when needed. This blog will walk through the key areas to evaluate, how to build flexible plans, and what actions you can take today to reduce your tariff exposure in 2025.

Why You Should Start Preparing Before Tariffs Are Finalized

When it comes to tariffs, the timeline between policy announcement and enforcement is often short and that can leave your supply chain exposed if you haven’t planned ahead. Once changes go into effect, many companies rush to shift production or explore alternatives, leading to extended lead times and higher costs. 

The reality is that preparing your supply chain takes time. Qualifying a new supplier, moving tools, or validating a new production site can easily take several months. If you wait until tariffs are officially announced to start this process, your decision-making will be rushed and reactive, increasing the likelihood of paying higher import duties simply because your options aren’t ready.

Doing the research now, while things are still uncertain, gives you the breathing room to evaluate alternatives at your own pace. It ensures that when the time comes, you’re not starting from zero. Instead, you’re ready to make a quick and confident move with a well-developed plan already in place.

Key Supply Chain Elements to Evaluate Now

Even if you’re not ready to make changes yet, there are several areas of your supply chain that you should start analyzing today. This preparation will help you understand your risk exposure and identify which levers you can pull quickly if tariffs are implemented.

Country of Origin Exposure

Identify which products or subassemblies are currently made in high-risk countries. This is especially important if your goods are made in China, as they are often the primary target of new tariff measures. Review your commercial invoices and customs declarations to confirm how your products are classified and where the origin is being claimed.

We covered this topic in more detail in our blog: Understanding Country of Origin in Manufacturing. 

Bill of Materials and Component Sourcing

Tariffs don’t just apply to finished goods, they can also affect subcomponents. Review your BOMs to see where parts are sourced and where they’re assembled. Even if final assembly happens in a tariff-free country, your product might still be considered Chinese-origin if critical components come from China and if substantial transformation is not achieved. 

Freight and Port Logistics

Evaluate how your current shipping routes, consolidation points, and ports of entry might be impacted by tariff-related delays or surcharges. Consider how a shift in production location would affect your logistics costs and timelines.

Supplier Flexibility

Talk with your current suppliers to understand their footprint. Do they have facilities outside of China? Can they shift production if needed? Understanding their capabilities will help you determine if you can adapt to your current relationships or if you need to find new partners.

By evaluating these elements now, you can better understand where your supply chain is vulnerable and what options are realistic if new tariffs come into effect.

Scenario Planning: Plan Multiple Paths Forward

With so much uncertainty around upcoming tariff changes, scenario planning is one of the most practical steps you can take today. Rather than betting on a single outcome, you can model a few different paths, each based on potential policy shifts, and start preparing accordingly.

Begin by estimating your total landed cost for each key product in a few different production locations. This includes not just the manufacturing cost, but also duties, freight, and any additional costs related to quality or validation. Compare that to your current costs to understand what a tariff hike would actually mean in real terms.

Here are a few common scenarios companies are evaluating:

Scenario A: Tariffs Are Reinstated or Increased on China

Model the cost impact if duties on your current imports from China increase to 145% and potentially 245%. Then compare those costs to producing the same product in a nearby country like Thailand or Vietnam, even if manufacturing there is slightly more expensive, the tariff savings could offset the difference.

Scenario B: You Maintain the Status Quo

If you decide to stay with your current supplier, model what steps you'd need to take to stay competitive, this could include negotiating better pricing, automating part of the process, or increasing order volumes to reduce per-unit cost.

Scenario C: You Diversify to a Second Supplier

Evaluate what it would cost to split your production between two countries, keeping part of it in China while transitioning some volume to another location, which is the China + 1 Strategy. This can help you build in resilience without fully overhauling your supply chain.

Having these models in place doesn't mean you have to act on them today. But by knowing what each scenario looks like financially and logistically, you’ll be ready to move quickly once the tariff picture becomes clear.

Actions You Can Take Today

While final decisions about your supply chain may still be months away, there are several low-risk, high-impact steps you can take today to set yourself up for faster, smarter decisions when tariffs are finalized. These actions won’t require a full commitment but will give you a critical head start if you need to move quickly.

Start Supplier Conversations and RFQs

Reach out to potential suppliers in other countries, such as Thailand, Vietnam, or Mexico. Even if you're not ready to switch, preparing for the RFQ process now helps you understand pricing, lead times, and capabilities. It also gives you an early sense of which partners are responsive and can best support you. 

Review Your Tooling Agreements

If you own your tooling, make sure it can be transferred if needed. If the tools are held by your current supplier, confirm the terms around tool transfer and what steps would be required to move them. This can be one of the longest lead-time items in a supply chain migration, so clarity now is essential.

Model Cost Scenarios

Build side-by-side comparisons of what it would cost to manufacture in your current location versus an alternative site. Include manufacturing, duties, shipping, and tooling. This will give you a clearer picture of when it makes financial sense to act.

Forecast Demand and Timelines

If you anticipate growing order volumes or new product launches, factor that into your planning. Larger volumes can justify new tooling or supplier validation efforts that wouldn’t be worthwhile for smaller batches.

Taking these steps now doesn’t lock you into a new supply chain, it just gives you options. And when tariffs are finalized, having those options ready could mean the difference between absorbing costs or staying competitive.

How EPower Corp Can Help You Prepare For Tariffs

At EPower Corp, we understand that navigating changes in the supply chain, especially under the pressure of looming tariffs, isn’t easy. That’s why we’ve built our business around flexibility, transparency, and helping customers plan for long-term resilience.

We operate manufacturing facilities in both China and Thailand, allowing us to offer production continuity while reducing tariff exposure. For companies exploring a “China +1” strategy, our Thailand facility can serve as a lower-risk entry point into Southeast Asia without compromising on quality or production support.

That said, we’re not the right fit for every product or business model and we’re upfront about that. But if you're looking to compare your options or understand what a shift might look like, we’re happy to share how our approach works and see if there’s a fit. Whether you're looking to transfer existing tools, start a new product, or simply want to be ready when the time comes, we’re here to help you explore the possibilities. Contact us today.