How to Protect Your Margins and Strengthen Customer Partnerships
In today’s unpredictable global trade environment, tariff volatility is only half the battle. While most manufacturers worry about the cost of tariffs, the real issue often lies in how suppliers plan, communicate, document, and manage those impacts. At the core of this challenge is documentation, both for cross-border shipments and for customer-facing negotiations.
Whether you’re seeking a tariff-related price increase or trying to avoid costly border delays, proactive planning and the ability to clearly document and explain your position determines how you’re perceived: as a trusted strategic partner, or as a risk to be managed.
Six Ways to Build Tariff-Resilient Supplier Relationships
Whether you’re trying to pass through a price increase or ensure your shipments clear customs without a hitch, proactive steps can pay exponential dividends.
1. Understand Your Internal Cost Structure
Before asking for a price increase, ensure you have detailed cost models. Be ready to show:
- Which inputs were affected by tariffs
- How much those costs increased
- Evidence such as supplier invoices or freight records
2. Train Your Teams and Audit Before You Ship
Equip your shipping, logistics, and commercial teams with targeted training on customs standards so they can confidently manage documentation and spot errors before they become costly. Reinforce that expertise with pre-shipment audits, verifying HS codes, declared values, and origin details before goods leave the dock. These audits aren’t just about avoiding mistakes but also a critical opportunity to flag shipments that could benefit from tariff deferral strategies. Catching mistakes and opportunities early is far less expensive than dealing with delays, fines, or customer escalations at the border.
3. Strengthen Broker Partnerships
In cases of complex shipments or when entering new trade lanes, partnering with an experienced customs broker is essential. Involve them early in the planning process to proactively address regulatory risks, ensure proper classification, and avoid costly delays. A knowledgeable broker can help navigate unfamiliar compliance requirements and provide strategic guidance as trade conditions evolve.
4. Integrate Documentation into Workflows
Break down silos between logistics, compliance, and finance by establishing end-to-end alignment. Develop SOPs and checklists for high-risk shipments and maintain a centralized knowledge hub for trade documentation. Look into leveraging automated customs software or ERP modules to streamline classification and reduce manual errors. By embedding clear, repeatable processes, this not only reduces errors but also improves visibility into which shipments are eligible for deferrals and enhances internal coordination and strengthens customer-facing communication.
5. Explore Tariff Deferral Tools: FTZs vs. Bonded Warehouses
Planning ahead creates the opportunity to evaluate and deploy tariff deferral tools that protect margins and improve cash flow. Two of the most effective options are Foreign Trade Zones (FTZs) and Bonded Warehouses, each offering distinct duty deferral advantages based on your operational needs.
Feature
Lock rates at time of admission
Set rates at time of entry
Duty/tariff deferral
Manufacturing allowed
Storage for re-export
Requires bonded transport
Best for high volume/integrated ops
Best for lower volume/SKU count
Storage duration
Setup complexity
Allowed materials
Foreign Trade Zone
✅
❌
✅
✅ (sorting, assembly, manufacturing)
✅
✅
✅
❌
Indefinite
Requires zone user setup; ideal for large ops
Foreign and Domestic
Bonded Warehouse
❌
✅
✅
❌ (limited to labeling/repacking with CBP approval)
✅
✅
❌
✅
Up to 5 years
Easier setup; customs broker files warehouse entry/withdrawal
Foreign only
To summarize:
FTZs are ideal if you expect tariffs to increase or plan to re-export, allowing you to defer or avoid duties altogether. Bonded Warehouses are beneficial if you expect tariffs to decrease, want shorter-term duty deferral, or need simpler setup for foreign goods storage.
6. Diversify and De-Risk Your Supply Chain
Reduce vulnerability to tariff shocks and geopolitical disruptions by diversifying your supplier base and country-of-origin exposure. Avoid overreliance on any single region, especially those prone to regulatory shifts, trade disputes, or logistical bottlenecks. A broader, more resilient supply network not only minimizes risk but also increases your flexibility in pricing negotiations, lead time management, and overall cost control. Proactive diversification enables faster pivots when trade conditions change and strengthens your long-term supply chain stability.
Documentation Is More Than Paperwork, It’s a Trust Signal
In times of tariff uncertainty, customers don’t just evaluate the numbers; they evaluate the narrative. Are you a supplier who understands your own business, anticipates risk, communicates clearly and builds forward-looking plans that include tools like tariff deferral? Or one who shows up reactive, unprepared, and vague. The difference can mean the difference between a smooth approval and a rejected cost pass-through.
Partner with Crossover Solutions
At Crossover Solutions, we help suppliers turn tariff and customs challenges into competitive advantages. From internal cost visibility to cross-border execution, we provide the tools, training, and strategies needed to build trust, protect margins, and perform under pressure.
If you’re navigating tariff volatility, or struggling to justify cost changes, reach out to us!