Suggestions and Support During the Current Tariff Situation

Dear Customer,

With the recent developments in U.S.-China trade relations making headlines, the continuous rise in tariffs has brought significant uncertainty to the global supply chain. We understand the pressure this is placing on many brands and suppliers, and we want to take this opportunity to share some thoughts and possible solutions.

Tariff fluctuations have always been part of international trade dynamics. In the past, preferential trade agreements and cost considerations have driven manufacturing shifts from China to Southeast Asia. Some companies have also turned to third-country routing to reduce duty rates. The current challenges are part of this ongoing evolution.

We’ve already received notices from several customers to delay shipments due to the unexpectedly high tariffs. As a result, many booked containers have been canceled. This could lead to cargo congestion at ports and warehouses, increased storage fees, and underloaded vessels, which in turn push up freight costs. If tariffs drop later, there’s a high likelihood of a shipping surge, container shortages, skyrocketing freight rates, and limited inland transportation capacity in the U.S.

On the production side, order suspensions have left factories with idle capacity. If tariffs drop and orders flood in simultaneously, manufacturers may struggle to keep up, potentially resulting in delayed deliveries or even price increases. In such cases, production lines will likely prioritize long-term partners and high-value orders.

Some clients are exploring third-country transshipment routes through Vietnam, Mexico, or Brazil to reduce duties. While this can be a temporary workaround, it involves double freight costs, dual customs clearance, longer lead times, and additional compliance risks—making it less ideal for the long term.

In light of this, we’d like to offer several possible support measures to help our clients navigate this period:

: For customers with urgent stock needs, we can support small-volume orders now and schedule larger orders once the tariff situation improves.

: We suggest preparing part of next season’s products in advance. If tariffs rise further, current rates may be the most favorable. Early procurement also helps ensure timely launches, with larger restocks scheduled later.

: We can agree on a special price structure during this period. Once tariffs return to a mutually agreed level, the pricing can be adjusted accordingly to ease short-term cost pressure.

: We offer free terminal storage for ready-to-ship goods and will monitor policy shifts closely. Shipments can be dispatched immediately once conditions improve.

: For orders above certain thresholds, we can offer duty subsidies. For example:

: For customers preferring a hands-off solution, we can shift from FOB to DDP terms. We will handle all logistics and customs, allowing you to focus solely on receiving goods.

We understand that this is a challenging time for all parties. That’s why we are doing our best to provide flexibility and work together toward practical solutions. Please feel free to share your thoughts or any specific requests—we’re here to support you.

Best regards,

Lan

Hangzhou Lantop Footwear Co., Ltd.