Tariffs Are Changing the Rules

Here’s How to Adapt Your Sourcing Strategy – and How Edgeworks Can Help

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Your production manager just called. Again.

A critical part is stuck in customs, and the import duties just doubled. All thanks to an overnight tariff change.
You’re not just fighting for delivery. You’re fighting for margin.

And like many operations leaders today, you’re asking: Is there a better way to build and scale my supply chain, without constant surprises?

Tariff Volatility Is the New Normal

The last few months have made one thing clear: global sourcing is no longer predictable.

Tariff schedules are changing rapidly, often with little warning. Compliance is more complicated. And yet, expectations for cost-efficiency and delivery speed are higher than ever.

If your supply chain isn’t flexible, it’s at risk. But flexibility doesn’t mean guesswork. It means strategy. Many OEMs are rethinking how and where they source critical components, and how their partners can help.

Here’s what we’re seeing from the most resilient teams:

• They rely on engineering insight to drive sourcing, not just pricing.
• They want clear visibility into total landed costs before they commit.
• They’re designing supply chains that can pivot quickly in response to policy shifts or regional disruption.
• And they’re expecting partners to handle compliance, customs and logistics, so they can stay focused on their products.

“Tariffs are a constraint, not a roadblock,” explains Mike Clark, Fathom’s Director of Commercial Operations. “With so much uncertainty affecting supply chains today, it’s critical that you partner with a company that not only has a global footprint but also an experienced compliance team. They should be able to design a supply chain solution around your needs. Plus, they should be able to quickly adjust their sourcing strategy as the global tariff environment changes.”

There’s no one-size-fits-all model anymore. But there is a smarter approach—and it starts with clarity, flexibility and engineering alignment.

Tariff Engineering

We help our customers weigh trade-offs in sourcing, materials and assembly that could shift the tariff outcome, without making compromises that could affect part performance or production timelines. This includes understanding the end-use of your parts, so we can make engineering and sourcing decisions based on HTS classifications (used to determine tariff rates).

Small adjustments in how a part is designed, assembled or routed can often lead to significant duty reductions, especially when our compliance and engineering teams work together from the start.

This type of end-use analysis can often uncover big opportunities to save money.

For example, we recently helped one medical equipment manufacturer reduce the duties on one of the components we build for them from 20% to 0% through strategic classification and material choices, all without impacting performance or delivery timelines.

Delivery Duty Paid (DDP) Logistics

Fathom has spent years refining our overseas sourcing programs to be as cost-effective and hassle-free as possible. One key example of this is our Delivery Duty Paid (DDP) approach. When Fathom is the importer of record, not your company, we take full responsibility for delivering your parts from our overseas partners to your specified location. That includes handling import duties, taxes, and customs clearance, along with all associated risks and paperwork.

This not only reduces your internal overhead but gives you something many suppliers can’t: true landed cost visibility upfront.

“Unlike some of our competitors, we’re able to provide you with a total landed cost for your parts, which enables you to make better-informed sourcing decisions. Fathom’s network gives our customers the optionality of a global supply chain with the control and clarity of a local partner.” Clark adds.

You’ll also benefit from our economies of scale. Because we ship large volumes for customers across industries, we’re able to negotiate discounted international freight rates and pass those savings directly to you in the form of lower per-part costs.

Prototype-to-Production Continuity

Many contract manufacturers avoid prototyping due to its uncertainty. But it’s often the most important phase, where you can make decisions that affect long-term cost, compliance and tooling flexibility. At Fathom, U.S.-based engineers collaborate with customers early to optimize parts before tooling is built overseas. Duty-free prototype codes and agile tooling programs allow customers to move fast, without compromising long-term scalability.

• U.S. Based Engineering // Our U.S. engineers can help you optimize your parts for manufacturability before tooling is built overseas, helping you avoid costly and time-consuming tool changes.
• Overseas Tooling & Part Production // You can have injection mold tools and parts made in small quantities quickly and affordably – ideal for a start-up with a new product or an existing one with a limited budget.

As your production needs grow, we offer hybrid and U.S.-based manufacturing options:

• International-Only Manufacturing // Source your injection mold tools and parts from our overseas manufacturing network. This is a popular low-cost manufacturing option.
• Hybrid Manufacturing // You can have export tools produced overseas, which can then be shipped to Fathom’s McHenry, IL location for U.S. production. Save money on tooling costs and have your parts built domestically. This arrangement is perfect for growing companies.
• U.S. Tooling & Part Production // All tooling and injection molding is done in the U.S. by Summit by Fathom in McHenry, IL. As your needs grow, it’s nice to know you have a stateside manufacturing option!

U.S.-Based Support, Global Execution

Each customer of our international manufacturing network is assigned a dedicated U.S.-based account manager. This experienced professional oversees all project communications, shipping logistics and customs and compliance documentation, from quote to final delivery.

“We manage our customers’ projects across time zones, regulations, languages and compliance requirements so they don’t have to,” Clark concludes.

Our Solution: Fathom Edgeworks

To bring all these capabilities together into one flexible approach, we created Fathom Edgeworks: a smarter global sourcing solution designed to help manufacturers navigate today’s supply chain volatility with more adaptability, clarity and control.

Fathom Edgeworks empowers customers to:

• Engineer around tariffs using HTS classification and end-use analysis
• Understand total landed costs upfront with our DDP model
• Leverage a global supply chain without losing quality or control
• React quickly to policy shifts, regional disruption or pricing changes

It’s not just a sourcing program. It’s a resilient, engineering-informed framework built for real-world challenges—like rising tariffs, compliance complexity and international uncertainty.

And it comes with a clear promise: Fathom will beat any fully-landed price, from any supplier, in any geography.

By combining global leverage, domestic optionality and tariff-smart strategies, Fathom Edgeworks gives you more than a supply chain solution. It delivers a better bottom line.