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Razor USA's once-straightforward import setup for its made-in-China scooters has been upended by Trump-era tariffs, forcing the company to overhaul who pays U.S. customs duties and how the costs are shared across the supply chain.
The designer of personal ride-on vehicles once paid all import duties on its products, which were entirely manufactured in China, according to Bryan Wood, VP of global supply chain. Today, that arrangement has been upended: U.S. customs duties are now folded into the factory price, which also includes production costs, overhead and the supplier’s margin.
The tariff portion of the price ultimately impacts costs for the supplier factories, Razor, retail partners and, ultimately, the consumer, Wood told Supply Chain Dive. The company’s main retail partners are Amazon, Target and Walmart.
"We can't move the retail price that quickly, so it is not one of those things where we can just pass that on to the consumer," Wood said. "So, we eat it, Walmart eats it, the factory eats it, and we try to smooth that out as much as possible."
