GOOD Supply Chain - Lower your Goods Tariffs

Tariff roller coaster and rebuilding boom

A major shift in US policy, with tariffs on Chinese goods reduced from 145% to 30%, has triggered a frenzy of "gold rush" among exporters, who have rushed to buy US goods. As shipping space sold out, ocean freight rates soared by more than 40%, but short-term euphoria hides a harsh reality: tariff uncertainty remains, the 90-day tariff reprieve and structural trade tensions remain unresolved.

For cross-border sellers, this is not just a temporary relief, but a wake-up call to reshape their supply chain strategy for long-term survival. GOOD Supply Chain emerged as a key enabler, providing end-to-end logistics solutions to turn tariff fluctuations into competitive advantages.

1. New tariff landscape: short-term benefits, long-term challenges

A. 90-day window

- Tariff reduction: The base tariff has been reduced to 30%, but key categories (such as air conditioners) still face a 55% superimposed tariff.

- Tariff deferral for small packages: The minimum tariff is reduced from 120% to 54%, protecting low-value e-commerce shipments.

B. Hidden costs

- Freight rate increases: China-US West Coast freight rates increased by 50% after the announcement, eroding tariff savings.
- USPS/eBay fee increases: US freight rate increases (7-10%) in 2025 will further squeeze sellers' profits.

GOOD insight: "The winners will not be those who rely on tariff luck, but those who optimize every link in the supply chain."

2. Three pillars of post-tariff supply chain efficiency

Pillar 1: Agile first-leg transportation solutions
- Guaranteed capacity: GOOD's "lock in space, lock in rate" program protects sellers from spot market fluctuations.
- Hybrid routes: Combine air freight (for emergency replenishment) and slower but lower-cost LCL (less-than-container load) ocean freight.

Pillar Two: Smarter U.S. Warehousing
- AI Inventory Allocation: Allocation of inventory to GOOD’s 12 U.S. distribution centers to minimize last-mile “cross-zone” fees.
- Tariff Optimization: Delaying tariffs until point of sale using FTZ (Foreign Trade Zone) warehouses.

Pillar Three: Hyperlocal Last-Mile Delivery
- Zip Code Accuracy: GOOD’s “6K+ Regional Coverage” network reduces last-mile delivery costs by 18% compared to national carriers.
- Regional Carrier Partnerships: Local carriers can provide two-day delivery coverage to 63% of U.S. zip codes.

3. Case Study: How GOOD Helps Home Furnishings Sellers Reduce Costs

Challenge: A Shenzhen seller faced a 55% tariff on outdoor furniture, with 28% of orders impacted by UPS’s “Far Zone” surcharge.

GOOD’s Solution:

• Moved 40% of inventory to a bonded warehouse in Savannah, Georgia.
• Reroute freight to ship via Mexican assembly plants (with tariffs reduced to 12% under USMCA).
• Deploy regional carriers in the Southeast to reduce last-mile freight costs by $1.8 per unit.

Result: 22% net savings despite tariff increases.

- Zero surprise pricing: All-inclusive “single rate” model (no hidden dimensional weight charges).

In this era of export trade boom, partner with GOOD to make your shipments more competitive.