“China tariffs” is one of the fastest-rising searches in the United States this year, and for good reason. Duty rates on Chinese goods have changed several times since 2018, new measures are announced with little warning, and the low-value shipment exemption that many e-commerce sellers relied on was closed for goods from China in 2025. For importers, the question is no longer whether tariffs will move, but how to buy in a way that survives the next move.
This guide explains what experienced US buyers are doing in 2026, step by step. It is written by our Hong Kong procurement team, which verifies suppliers and follows production in China and across Asia for international companies.
1. Map your real tariff exposure, product by product
Most companies know their total duty bill but not where it comes from. Start with a simple table: every product you import, its HTS code, its country of origin, the duty layers that apply to it today (the general rate, Section 301 duties on Chinese goods and any additional measures), and its yearly volume.
- Confirm each HTS code with your customs broker. A wrong classification is one of the most common and most expensive mistakes.
- Rank products by duty paid per year. Usually a small number of items carry most of the exposure.
- Flag the products where a change of a few percentage points would wipe out your margin.
2. Compare landed cost, not unit price
A factory price that is 8% lower means nothing if duties, freight, inspection and longer lead times erase the saving. Build a landed-cost model for each key product: unit price, packaging, inland transport, ocean or air freight, insurance, duties, broker fees and the cost of carrying more stock.
Run it for your current supplier and for every alternative you consider. Many buyers discover that staying in China with a better-negotiated contract beats moving production in a hurry.
3. Diversify carefully: China plus one, not China minus everything
Vietnam, Thailand, Malaysia, India and Indonesia are now part of most sourcing plans. They can reduce exposure, but they come with their own risks: less mature supply chains for some categories, longer ramp-up, and quality that varies more between factories.
- Move product lines gradually, starting with simpler items.
- Keep your best Chinese suppliers as a benchmark and a backup.
- Check rules of origin. US Customs looks closely at goods that are only assembled or relabeled in a third country. If the product is not substantially transformed there, it can still be treated as Chinese, with penalties for misdeclaration.
4. Verify every new supplier before the first payment
Rushing to a new country with an unverified factory is how tariff savings turn into losses. Before you pay a deposit, check the business license, confirm the factory actually makes your product (and is not a trading company presenting itself as a factory), visit or audit the site, and approve a production-grade sample.
5. Put tariffs into your contracts
Tariff clauses are now standard in serious sourcing contracts:
- Incoterms that match your control. FOB keeps freight and customs on your side; DDP shifts them to the supplier but hides costs inside the price.
- Price adjustment and tariff-sharing clauses that say who absorbs a new duty and from which shipment date.
- Shorter price validity and volume bands instead of fixed annual prices.
- Exit and transfer rights for your molds and tooling, so you can move production if you need to.
6. Time your purchases, but do not gamble
Some importers pull orders forward before an announced increase. It can work, but it ties up cash and warehouse space. Decide with your landed-cost model, not with headlines.
How Golden Leverage helps
From our Hong Kong office we help US importers benchmark their current Chinese suppliers, verify alternative factories in China and Southeast Asia, negotiate tariff-aware contracts and follow production until shipment. If you are reviewing your supplier base this year, start with our Sourcing Starter Pack: a one-time supplier verification and price benchmark before you commit money. Or simply tell us what you import and we will reply with the next steps.
Tariff rates change frequently. Always confirm the duty applicable to your HTS code with a licensed customs broker before you order.