Multi-region sourcing diversification reduces tariff exposure to single-country shocks (Section 301, Section 232, AD/CVD). Common approach: primary sourcing from low-tariff origin (Mexico USMCA, Vietnam) with secondary sourcing from alternative low-tariff origin (India, Korea KORUS) for redundancy.
This guide covers Multi-Region Sourcing Diversification. Strategic tariff work spans sourcing decisions, scenario planning, and supply chain design.
Practical implementation depends on company size, sector, and operational structure.
Reducing China concentration
Section 301 + Section 122 stack creates ~22-42% effective rates on China-origin. Diversification reduces exposure.
Vietnam alternative
No Section 301 (with proper substantial transformation). Section 122 still applies. Effective ~15-17%.
Mexico USMCA
Section 301 avoidance + USMCA qualification = Section 122 exempt. Effective rate often 0-5%.
India and other alternatives
India: no Section 301, Section 122 applies. Korea KORUS: preferential rates with qualification.
Frequently asked questions
When does this apply?
Most relevant for SMB importers facing the named situation or considering the named strategy.
What documentation is needed?
Standard CBP forms plus topic-specific records.
What is the timeline?
Initial assessment 2-4 weeks; complex implementation 8-16 weeks.
What does this cost?
Project work typically $5,000-$25,000. Ongoing retainer for active operations.
How do I begin?
Book a 15-minute scoping call. We confirm fit before any engagement.
Get started
Engage on supply chain or strategy work. Project pricing varies by scope.