Well that was bonkers…

Looking forward to the dust settling from this storm of global tariffs, we’ve been reflecting on what this really means going forwards – not just for us as designers, but for you and your pipeline of existing and new products.

It’s clear what’s coming. With global trade so interconnected and complex, very few product are 100% homegrown in the west. Components, sub assemblies and even the final product might be sourced from any number of different countries, with new barriers adding cost at every stage.

Reality is not as simple as those wielding the tariff stick believe. With stock levels shrinking and production costs climbing, the way products are made, priced and sold is shifting quickly.

So we’ve been asking ourselves: how do we as commercially focused industrial design agency plan for the unexpected and help you prepare?

How We’re Adapting

Expanding our production network

For the last 20+ years, China has been a reliable production partner for many of our projects. We’ve built a strong, reliable network there that we’ve used time and again. But here’s the reality – for any company launching a new product, where the US is crucial part of the future market, then using a Chinese supplier could be a non-starter.

From day one, it limits where they can grow. That’s a blocker we can’t ignore. (Unless of course you assemble elsewhere?)

We’re now investing in strengthening alternative supply chains – across Eastern Europe, Southeast Asia, and where possible, locally. We still push for UK or near-shore production whenever we can (even though it comes with its own headaches), but we also recognise that some sectors are so tied to China that a full shift will take years

Rethinking order quantities

Tariffs are being applied to the value of goods, which has big consequences. Most large production runs are financed, so interest costs are going up sharply. In one example, the interest per unit jumped from $8 to $23 per part on a 50,000-unit order. That’s a huge hit to the msrp.

As costs rise, clients are ordering fewer units. That means losing out on volume discounts, with knock-on effects on pricing and profitability. We’re now advising clients earlier to plan around lower MOQs and pressure-test their financial models from the start.

Putting the full financial picture on the table

This has been one of the biggest changes in how we work. We’re moving financial planning to the start of every project. Too often, designers get buried in the BOM and overlook the wider cost picture – tariffs, retailer margins, freight, storage, handling.

With margins under pressure, this kind of planning earlier on isn’t just helpful, it’s essential. It allows us to make better decisions, reduce risk, and help clients understand the full commercial picture before they’ve spent a penny on prototypes and tooling. Taking decisive actions on fluctuating markets means being on the ball with pricing.

Reframing value engineering

The natural response to cost pressure is to simplify—strip things back, reduce features, lower spec. And in some cases, that makes sense. But we’re encouraging clients to think beyond short-term savings.

Right now, it might not make financial sense to ship a product built in China into the US. But that doesn’t mean freezing development altogether. The market will shift again, and when it does, you need to be ready. This is the time to sharpen your product roadmap, refine your offer, and use the breathing room to fix long-standing issues—returns, poor reviews, missed opportunities.

Your competition is feeling the pinch too. So instead of pausing, focus on strengthening. Invest in R&D, explore new tiers in your range, and prepare to stand out when things stabilise.

There’s comfort in knowing you’re not alone. But there’s also opportunity in getting ahead.

Our Mindset Going Forward

We’re treating this tariff era not as a temporary disruption, but as a new business environment. One that calls for sharper thinking, broader production options, and earlier financial conversations.

As industrial designers, we sit in a unique position – balancing creativity with commercial thinking. That gives us a real opportunity to help clients not just design around problems, but design through them.

We’re still adapting, still learning, and would love to hear how others are approaching this. What changes have you made? Are you shifting suppliers, pausing launches, or reworking product strategies?

Tariffs might be here to stay, but so is creativity. And that is the best tool we have to adapt and thrive in any storm.