How We Are Navigating the 104% Tariff as a Chinese Manufacturer？

📌 Introduction

In April 2025, the U.S. government imposed a steep tariff increase on many categories of Chinese-made products — including our core industry: indoor playground equipment. The tariff rate jumped from 34% to 104%, drastically affecting the cost structure of international trade.

As a Chinese manufacturer with 15+ years of global export experience, we understand that such dramatic policy shifts can disrupt not only suppliers, but also importers, distributors, and end users. We believe in proactive, transparent, and legal strategies to navigate these changes together with our clients.

Here’s what we’re doing to respond:

1. 🧮 Tariff Engineering & Product Reclassification

We are working closely with certified trade consultants to carefully review and optimize our product classifications under the Harmonized System (HS Codes).

Where possible, we explore:

• Adjusting material composition or design to qualify under alternative classifications.

• Separating finished and semi-finished components for different treatment.

This process — known as tariff engineering — is fully legal and helps reduce unnecessary tax exposure, while maintaining product integrity.

2. 🌐 Supply Chain Diversification

We are exploring diversifying production bases and component sourcing across multiple countries. Although some transshipment routes (such as Vietnam, Mexico, or UAE free zones) are now under scrutiny or blocked, long-term solutions may include:

• Partial production or finishing work in secondary countries

• Strategic warehousing or bonded facilities

• Stronger regional partnerships

However, we prioritize full compliance with all U.S. and international trade regulations.

3. 🤝 Client Collaboration & Transparent Pricing

We believe the best way forward is honesty. We're currently:

• Explaining the full cost impact of the 104% tariff to our clients

• Offering flexible pricing models based on production timeline and packaging format

• Helping buyers redesign orders to reduce tariff classification weight

We're not hiding from the truth — we're working with clients to solve problems together.

4. 💡 Emphasizing Product Value Over Price

In a high-tariff environment, value becomes more important than cost alone. We are reinforcing what makes our products unique:

• European & American safety certifications (EN1176, ASTM, TUV)

• Tailor-made themes for FECs, kindergartens, and shopping centers

• Durable materials, high-end finishes, and professional 3D layout design

We help our partners demonstrate to their customers why paying a little more is worth it in quality, safety, and lifecycle performance.

5. 🔍 Staying Compliant & Well-Informed

We constantly monitor trade laws, customs rulings, and policy developments. Everything we do — from logistics planning to classification adjustments — is done with 100% transparency and legal compliance.

We are committed to long-term business, not short-term shortcuts.

📬 Let's Connect

If you're a distributor, investor, or buyer impacted by the tariff hikes — or if you're looking for a smart and stable partner — we are ready to support you.

📧 Email: info@toymakerinchina.com
🌐 Website: www.toymakerinchina.com
📞 WhatsApp / Phone: +86-13868643987

Let’s navigate this together.

Join the discussion: This blog post was inspired by our industry conversation on Reddit. Read the original thread here: U.S. Tariffs Just Jumped to 104% — What Now?