On May 12, U.S. pauses tariffs on Chinese imports, cutting rates from 145% to 30% for a limited 90 day period. While this pause may appear to offer relief for importers, the reality for electronics manufacturers is more complex. Temporary policy shifts like this one do not remove risk; they highlight it.
Manufacturers who interpret this change as a sign of long-term stability may find themselves exposed once again to unpredictable cost surges. In an environment shaped by trade uncertainty, flexibility, not optimism, is the only sustainable strategy.
What a 30% Tariff Really Means
Although 30% is an improvement from 145%, it still represents a significant cost burden, especially for high-BOM electronics. More importantly, this reduction is temporary. After 90 days, rates could increase again or shift unexpectedly in scope.
This short-term policy shift does little to reduce long-term exposure. Businesses with China-centric sourcing strategies remain highly vulnerable to future trade disruptions.
A Pattern, Not an Exception
Since 2018, the U.S.-China trade relationship has been anything but stable, with tariff levels fluctuating rapidly and unpredictably. Tariffs often change by product category, manufacturing process, or through reinterpretation by customs authorities.
These are not isolated disruptions. They are part of an ongoing pattern. Manufacturers who failed to diversify during earlier rounds of tariff hikes absorbed heavy losses, from margin erosion to missed shipments and expensive redesign cycles.
How to Prepare: Design for Portability
Tariffs may pause, but uncertainty won’t. The best way to prepare is to design your product so it can move when it has to, without costly delays or redesigns.
Portable design means engineering with relocation in mind. It is not just about lowering BOM costs; it is about ensuring that your product is not locked into a single geography, vendor, or supply chain. This mindset influences every early design decision, from country-of-origin considerations to component selection.
Critical aspects of portable design include:
- Sourcing components with verified alternatives in multiple regions
- Managing country-of-origin status from the start, not as an afterthought
- Designing tooling that can be duplicated or shipped without needing complete redesign
- Selecting parts and materials that avoid triggering complex certification changes in new locations
This type of design thinking makes it possible to shift final assembly or even sub-assembly operations in response to tariffs, logistics bottlenecks, or geopolitical changes, with minimal disruption.
Designing for portability protects your product, your lead time, and your options. And in an era of trade unpredictability, that is what gives you leverage.
Conclusion
Short-term tariff reductions may offer breathing room, but they do not solve the underlying issue: trade policy unpredictability. Businesses who continue to rely on a single manufacturing geography are accepting risk that cannot be priced in.
Designing for flexibility across sourcing, assembly, and logistics is no longer optional. It is the only viable strategy for long-term supply chain stability.
