Tariff Truce or Ticking Clock? What the 90-Day Reset with China Means for Retail Suppliers

The HRG Team
2 days ago
3 min read

Breathe in. Hold it. Now exhale.

That giant whoosh you just heard? It’s the collective sigh of relief from retail suppliers across the U.S. reacting to the surprise 90-day tariff reset between the U.S. and China.

Under the agreement, U.S. tariffs on Chinese imports drop to 30%, while China cuts its tariffs on U.S. goods to just 10%. It’s a temporary reset that creates a narrow window of opportunity.

If you’re a supplier, the clock just started ticking. And what you do in these next 90 days may determine whether you hit your 2025 revenue targets—or get blindsided by deductions, disruptions, and disappearing margin.

Why This Reset Matters (Even If It’s Short-Lived)

Imagine you’re a mid-size electronics brand. Your fall orders are already on the water. Black Friday forecasts are locked. And then—boom—the tariff rate shifts. Your COGS drops 12%.

You’re thrilled, right?

Well… maybe.

Now, imagine your PO doesn’t match your invoice. Your retailer flags it. A deduction hits your next check. Multiply that by 400 stores and thousands of units. Suddenly, that tariff “relief” gets eaten up by mismatched paperwork and a messy supply chain.

That’s not fiction. That’s Tuesday in the world of deduction recovery.

Here’s What’s Really at Stake

According to Boyd Evert, HRG’s CEO and co-founder, this tariff shift is more than a headline. It’s a wake-up call.

“You don’t get a redo,” Evert says. “And a lot of this stuff—there’s real money at stake.”

What kind of money are we talking about?

Price Protection Miscalculations – Retailers may deduct funds if prices drop in transit and your systems don’t account for it correctly.
Shipping Penalties – Half-filled containers, delays, or misrouted shipments during this surge could trigger OTIF (On-Time In-Full) fines.
Unauthorized Deductions – A sudden change in tariff structure means retailers may audit invoices against purchase orders more aggressively.

In other words, this is prime time for deduction errors.

Three Smart Supplier Moves You Should Make Right Now

Rebuild Your Cost Model—Fast Don’t guess. Re-run your landed costs at the new 30% tariff level. Then overlay best- and worst-case scenarios. This will help you avoid pricing errors and set you up for clean reconciliations later.
Renegotiate Price Protection Strategically If you're offering price protection, make sure it accounts for both in-transit and on-hand inventory. It’s not just a goodwill gesture—it’s your first defense against deduction disputes.
Audit Your Deduction Playbook Use this window to look at your last 90 days of deductions. What trends do you see? Are there signs of confusion between PO and invoice pricing? Missing tariff code updates? These small oversights now could turn into major write-offs later.

What Comes After 90 Days?

No one knows for sure. But Evert has a clear perspective:

“You’re not turning a retail supply chain on a dime. It's a tanker, not a speedboat,” he says.

“Reshoring takes years. That means China’s still in play—and these deduction risks aren’t going away anytime soon.”

Uncertainty is also brewing with the EU. President Trump hinted that trade talks with Europe might get “even tougher” than with China. So don’t assume stability. Plan for volatility.

Deduction Risk is the Hidden Tariff

The tariffs may have dropped. But deductions? They’re still climbing.

In fact, some of the worst post-tariff losses aren’t from duties at all—they’re from incorrect invoices, outdated freight terms, or simple system mismatches that snowball into massive deductions.

This is where expert eyes matter.

Final Thought: Focus on the Hips

Boyd used a powerful metaphor from his high school wrestling days:

“Focus on the hips. The limbs—the flailing arms and legs—don’t matter if you’re not watching the core.”

It’s the same in retail. Don’t get distracted by headlines or political theater. Look at what’s actually happening in your deduction data. That’s where the real movement is.