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Sudden tariff hikes and unclear trade policy shifts don’t just squeeze margins—they disrupt quoting, delay decisions, and strain vendor relationships across an already complex supply chain.
In high-stakes sectors like defense and aerospace, clear communication and pricing transparency aren’t optional—they’re critical to maintaining trust with vendors and customers in a fast-moving, high-stakes supply chain.
What’s Actually Happening?
You’ve probably seen the headlines—but the fine print is staggering. Cambodia’s tariffs jumped from under 1% to 50%. Some categories from China now face rates as high as 145%. These aren’t minor tweaks—they’re massive shocks to pricing structures already operating on razor-thin margins.
Some of our vendors responded by pausing quoting activity entirely, afraid to take on risk without knowing how deeply tariffs will cut into already thin margins.
That’s a problem. For everyone.
The Ripple Effects Are Real
When vendors go silent or inject flat-rate surcharges “just in case,” quoting slows to a crawl. I’ve spoken with partners who’ve added arbitrary 10–15% fees—not because they know a tariff is coming, but because they’re afraid it might. That creates confusion for customers and adds friction into what should be a collaborative, transparent process.
We’ve even seen situations where goods already in transit are affected. There’s no consistent rule—sometimes tariffs apply at the port, sometimes at point of entry or customs declaration. That unpredictability leads to delays, margin erosion, and mistrust.
So What Do We Do Instead?
Let me be clear: don’t shut down quoting. And don’t react with blunt-force tariffs ahead of time.
Here’s how we’re approaching this at Radeus Labs:
• We keep quoting.
Pausing activity out of fear only creates downstream chaos. Small businesses can’t afford a 30-day standstill. We need to stay in motion.
• We add protective language to all quotes.
We now include a clear disclaimer and line item labeled:
➤ “Tariff – Actual Cost TBD”
This communicates risk without guessing. We’re not charging speculative fees—we’re creating space for mid-process adjustments if tariffs are triggered.
• We’re talking openly with customers and vendors.
Transparency isn’t just a tagline. We tell our vendors, "We’re trying to plan ahead for tariffs. We are keeping ourselves and partners aware to avoid being blindsided as much as possible."
We’re also working to negotiate back down where vendors are preemptively applying tariffs that haven’t yet hit. It’s worth asking: Can we hold off together?
• We’re actively reviewing sourcing—but not overreacting.
There’s a lot of noise about “Made in America” as a silver bullet. We’re pursuing that long-term, but let’s be honest:
➤ Most computing components still originate overseas, even for U.S.-based manufacturers.
You can’t pivot an entire BOM (bill of materials) overnight. In many cases, you’re just trading one tariffed country for another. We want to be realistic, not reactive.
Vendors Are Scared. Be the Steady One.
I understand our vendors’ fear. Margins are razor thin. But adding a 10% buffer “just to be safe” does more harm than good. It confuses customers and risks undermining hard-won relationships.
Instead of reacting out of fear, let’s be the ones who stay proactive, practical, and communicative.
• If you're a vendor: add line-item clarity, not blanket fees.
• If you're a manufacturer: educate your customers instead of panicking.
• If you’re both: be honest about what you can control and what you can’t.
Final Thought: Stay in Motion
If you take nothing else from this, remember:
Don’t shut down. Don’t preemptively add tariffs. And don’t sacrifice trust in the name of speed.
Instead:
• Add the language you need to protect your quotes.
• Continue operations, even amid uncertainty.
• Reassure up and down the chain.
That’s how we avoid a second wave of disruption—whether it’s order backups, port congestion, or customer frustration. And that’s how we show up as long-term, trusted partners in a volatile moment.
— Juliet Correnti is the CEO of Radeus Labs, a U.S.-based cleared facility and ISO 9001 certified manufacturer of satellite communication and computing systems built for mission-critical environments.
