Lara Guevara walks through how tariffs on Chinese imports are reshaping product costs. An $8 factory item that cost $0.60 in duties now costs $11.60 under the new 145% tariff, pushing landed cost from $12 to over $23. Brands need to model multiple tariff scenarios to survive.
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Let me show you the tariff math most brands are getting wrong. So you source a product from China. Factory price is $8. You've been importing it with a 7.5% duty rate. That's $0.60 per unit. And this year, tariffs went up to 145%. That's $11.60 per unit on an $8 product. Your landed cost just went from roughly $12 to over $23 on the same product Same factory, same customer, and yes, there's a 90-day deal that brought it down to 30%, so now it's around 10.4% until June. But the 90-day window closes, and nobody knows what rate comes after. This is not a political opinion, this is math. If you haven't rebuilt your pricing scenarios at 30%, 54%, and 145%, you are flying without instruments. And the brands surviving this are not the ones who predicted the outcome, they're the ones who know their numbers at every scenario. Tomorrow, what the minimis ending means if you're still shipping small parcels directly from China.