Trying to Reduce China Tariffs? Don’t Fall Into the Country-of-Origin Trap

With U.S. tariffs remaining a major concern for companies importing products from China, China+1 manufacturing can seem like an attractive way to reduce exposure. But moving products through another country, changing the label, or carrying out a small amount of additional work there does not automatically change a product’s country of origin. In this episode, Adrian and Renaud look at the difference between legitimate China+1 manufacturing and risky tariff-avoidance shortcuts. They discuss substantial transformation, what importers should verify when production moves to another country, and why a seemingly simple change can introduce new quality, logistics, supplier-control, tooling, and IP risks.   Show Sections 00:00 – Why country of origin is back in the spotlight 02:13 – The dangerous shortcut: simply routing goods through another country 06:33 – What counts as substantial transformation? 12:34 – The China+1 questions every importer should ask 15:25 – Can you actually verify the second factory? 21:06 – The quality and logistics risks beyond tariffs 25:38 – Tooling, IP, and the problem of responsibility 28:19 – Is China+1 actually worth doing?   Related content Why “China Plus One” Isn’t What You Think For Electronics Pulling Your Tooling from Chinese Manufacturers: Key Risks and Best Practices Manufacturing in China for the U.S. in 2026: Tariffs, China+1, and the Real Cost of Moving Production [Podcast] How To Choose Which Factory Audit You Need? Vietnam-US Trade Deal: Trump’s Tariff Tactics & Transshipment Troubles [Podcast] Setting up Manufacturing in Vietnam vs China: Focus on Vietnam U.S. Customs and Border Protection — CROSS (Customs Rulings Online Search System) Get in touch with Sofeast Connect with us on LinkedIn Contact us via Sofeast's contact page Subscribe to our YouTube channel Prefer Facebook? Check us out on FB