The China Tariff Pause: What It Really Means for Product-Based Brands
This week (5/12/25), the U.S. announced a 90-day pause on the steep tariff hikes that were set to impact Chinese imports—dropping the proposed 145% duty down to 30%.
If you manufacture in China, this might feel like a win—and in some ways, it is. But in reality, this short-term pause only buys time. It doesn’t solve the larger issue most brands are facing right now:
How do you plan inventory in a moment of massive uncertainty?
The Real Risk Isn’t Just Tariffs—It’s Inventory Strategy
Retailers are walking a tightrope right now:
Order too little, and you risk stockouts and missed sales during key selling periods.
Order too much, and you’re facing markdowns, overstock, and strained cash flow.
The timing couldn’t be trickier. With Fall and Holiday buying decisions already in motion, this 90-day window is less of a reprieve and more of a critical planning moment.
What Smart Brands Are Doing Right Now
I’ve been speaking with founders and reviewing inventory strategies across categories—and here’s what I’m seeing among brands who are navigating this moment well:
Tightening assortments: Fewer SKUs, stronger bets. Less fluff, more focus.
Prioritizing evergreen products: Items that won’t go out of style or be heavily seasonal.
Running margin checks: Pricing scenarios to protect profitability if/when tariffs return.
Negotiating supplier terms: Especially for bulk orders placed before the next hike.
It’s also a good time to re-evaluate how quickly you can pivot. If you're relying on long lead times or locked-in buys far in advance, it may be worth exploring flexible inventory strategies or closer-to-home production partners.
What You Can Do This Week
You don’t need to overhaul everything—but this is a moment to tighten the screws a bit. Here’s where I’d start:
Review your Fall and Holiday assortment plans. What’s essential vs. experimental?
Request tiered pricing from suppliers so you can adjust volumes without losing terms.
Order key core products now while the 30% tariff holds.
Look at your Q4 inventory cash flow to see where you might be exposed.
Ask for better payment terms. You don’t ask, you don’t get—and many suppliers are more flexible than you think right now.
The Bottom Line
This isn’t permanent relief—but it is a small window to get ahead.
Whether you’re making strategic bets, scaling back, or rethinking your assortment for the rest of the year, this is the time to plan—not panic.
And if you’ve been feeling overwhelmed by the uncertainty, you’re not alone. The best thing you can do right now is focus on clarity over chaos—and make a plan that can flex with you.
I'm always here if you could use someone to brainstorm some ideas with! Feel free to reach out - rachel@rachelralston.co.