How to Reduce Tariffs

How to Reduce Tariffs: A Strategic Guide for US Importers

The recent shift in US trade policy has created significant challenges for American businesses that rely on imported goods. The suspension of the de minimis exemption for a vast number of low-value packages means that countless imports under $800 are no longer automatically duty-free. This move has disrupted supply chains, increased costs, and left many US buyers asking a critical question: How can we continue to import goods profitably and sustain our businesses in this new environment?

The answer lies not in avoiding tariffs, but in implementing smarter, more strategic import processes. While the old model of direct-to-consumer shipping is now fraught with uncertainty and hidden costs, innovative manufacturers have developed legal and cost-effective solutions. By understanding and leveraging these new logistics models, US importers can not only survive but thrive.

 

The New Challenge: Understanding the Policy Shift

The de minimis rule previously allowed low-value goods to enter the US without formal customs entry or duty payments. Its suspension for many shipments means that Customs and Border Protection (CBP) now requires data collection and tariff payments on a massive scale. This has caused logistical bottlenecks and forced many carriers to pause services, directly impacting small and medium-sized businesses that depend on frequent, small-batch imports.

For the American buyer, this translates to:
Unpredictable Costs: Previously competitive products now carry unexpected tariff expenses.
Squeezed Profit Margins: Businesses must choose between absorbing new costs or risking sales with price increases.
Operational Disruption: The simple, direct-to-door import model is no longer reliable.

 

A Practical Solution: The "Special Line Shipping" Model

In response to this challenge, forward-thinking manufacturers are offering innovative logistics solutions. A prime example is OERISE, a custom manufacturer of streetwear and outdoor-style hats and clothing. Established in 2010, OERISE has introduced a "Special Line Shipping" method that effectively manages the new tariff burden for its US clients.

This model is a two-stage process that redefines the import journey:

Stage 1: Bulk Customs Clearance (6-8 days)
Goods are shipped from the factory via a dedicated customs airline. The critical differentiator here is that OERISE manages the entire customs clearance process. They prepare all documentation, declare the goods, and—most importantly—pay the required tariffs directly to US authorities. This transforms numerous small parcels into a single, managed commercial shipment.

Stage 2: Domestic US Delivery (3-5 days)
Once cleared and warehoused in the US, the orders are handed over to domestic carriers like UPS or FedEx for final delivery. This leverages the efficiency and reliability of the US logistics network.

Total Transit Time: 10-12 days, which is highly competitive for a fully customs-compliant shipment.

 

The Compelling Value Proposition

OERISE’s model is powerful because it directly addresses the core concerns of US importers with a triple guarantee:

1. No Direct Tariff Payment: The buyer does not pay the tariff separately. OERISE covers the cost at the bulk clearance stage, providing complete cost predictability and eliminating surprise bills.
2. Stable Shipping Costs: Through efficient logistics and economies of scale, the overall shipping fee remains similar to pre-policy rates.
3. Consistent Product Pricing: The unit price for products like custom hats remains unchanged, shielding clients from immediate cost inflation.

This approach provides a stable and predictable cost structure, which is essential for business planning and growth.

 

Legality and Security: A Foundation of Trust

A legitimate question arises: Is such a method legal and safe?
The answer is a clear yes. OERISE’s "Special Line" is built on a fully transparent and compliant framework. This method operates under a standard international trade term known as Delivered Duty Paid (DDP).

In a DDP arrangement, the seller (OERISE) assumes all responsibility for the goods, including all risks and costs—such as tariffs—until the products are delivered to the buyer. This is a perfectly legitimate and widely used Incoterm. There is no attempt to misrepresent value or circumvent the law; the correct tariffs are paid in full. This model effectively transfers the administrative burden and risk of customs clearance from the buyer to the supplier, making the process safer and simpler for the US importer.

 

Strategic Actions for US Buyers

To navigate this new era successfully, US importers must adapt their sourcing strategies:

Seek Agile Partners: Prioritize suppliers who offer proactive solutions, not just low unit prices. Ask potential partners about their specific strategies for managing US tariff policies.
Calculate Total Landed Cost: Always evaluate the "Total Landed Cost"—the sum of the product price, shipping, insurance, and all tariffs. A supplier with a DDP solution often provides a better and more predictable final cost.
Consolidate Orders: Consider consolidating smaller orders into larger shipments. This allows suppliers to use more efficient commercial freight methods where tariff and logistics costs can be optimized.

 

Conclusion: Turning Challenge into Opportunity

The changing trade policy does not have to be a barrier to business. It is a call to adopt more resilient and sophisticated sourcing strategies. As demonstrated by OERISE’s "Special Line Shipping," the path forward is through partnership and smart logistics.

This model ensures legal compliance, cost control, and operational reliability. By aligning with suppliers who have the expertise and infrastructure to manage these complexities, US buyers can secure their supply chains, protect their profit margins, and continue to grow their businesses with confidence.

The future of importing is not about finding loopholes; it's about forging smarter partnerships.

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Supplier Profile: OERISE
Website: www.oerise.com
Established: 2010
Specialization: A rapidly growing custom service manufacturer specializing in street style & outdoor style hats and clothing.

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