Tariffs Are Coming (Again). But You’re Not the Titanic.

This article was originally posted on EMSNOW on April 24, 2025.

If you run a small EMS company and you’re losing sleep over global trade policy… stop. You're not a multinational. You're not lobbying Congress. You're not building fabs. You're just trying to get some boards stuffed with parts without going out of business.

In the grand scheme of geopolitical drama, you’re a dinghy in a macroeconomic ocean. You can’t control the waves —but you can keep your boat patched.

Here’s what you should focus on instead of doomscrolling USTR press releases:

1. Tariffs = Cashflow Drag. Budget for It.

Even if you pass tariffs along to your customer, that might take time during which you might still have to pay Customs before you get paid. That means you’re floating Uncle Sam’s bill for 30, 60, sometimes 90 days.

🚨 Translation: That $0.11 resistor with a 25% duty? It’s not killing your margin—but multiply that across a few POs, and suddenly your working capital feels tight.

Make sure your cashflow model reflects that reality.

2. Fix Your Accounting Systems

Too many EMS shops treat tariffs like a mystery line item.

• Is it in COGS?
• Is it buried in overhead?
• Did it just evaporate into the ERP void?

You need clear cost traceability. Your system should show:

• What duty was paid
• On which line item
• For which customer
• And when

If it doesn’t? Time to tighten that up. Your margins depend on it.

3. Smarter Sourcing = Lower Tariffs

If you’re buying from distributors, HTS codes and Country of Origin (COO) aren’t always obvious—but they should be part of your decision-making.

Two identical-looking parts might have wildly different tariff implications depending on where they’re sourced from.

Ask your disty. Push for COO visibility in your RFQ process. And while you're at it…

Offer alternates.

If your customer picked a part that’s functionally equivalent to one with a lower duty, offer to swap it out. That’s not just good sourcing—it’s value-added service.

4. Show Customers You’re “Tariff Ready”

Don’t just do the right things—show them off.

• Show them how your system flows tariff costs through their invoice.
• Highlight your HTS/COO logic in sourcing.
• Explain how you help reduce tariff exposure through alternates.

In a world where some EMS companies are still fumbling with spreadsheets, looking prepared is a differentiator.

5. Be Transparent About Tariffs

Tariffs are annoying. But they’re not something you hide in the back of the quote like you’re trying to slip in a “resort fee.”

Your customers will respect clarity. Even if the price goes up, being upfront helps build trust—and trust gets you repeat business when the next wave hits.

Bottom Line

You can’t predict the next trade war. But you can make sure it doesn’t take you down with it.

Stay lean. Stay clear. Stay honest. And stop pretending you control global economic policy.

(Unless you do, in which case: we have questions.)