How Rising US Tariffs Are Threatening Your American Customer Relationships—and How to Protect Them

How Rising US Tariffs Are Threatening Your American Customer Relationships—and How to Protect Them

If you're an international company selling to US customers, you're facing a crisis that has nothing to do with your product quality, pricing, or service—and everything to do with tariffs.

The effective US tariff rate has surged from 2.3% at the end of 2024 to 15.8% as of August 1, 2025. New country-specific tariffs take effect August 7 (35% on Canadian goods, 30% on South African goods, 20% on Vietnamese goods), and rates are projected to reach 18-20% by year-end. In pharmaceuticals, tariffs could hit 200% by mid- to late-2026.

Here's the problem that's keeping your US customers up at night: They pay the tariff, not you.

The Real Tariff Crisis: Your US Customers Are Paying—and They're Scared

Let's be crystal clear about how tariffs work: tariffs are incident on the importer. When your products cross the US border, your American customer (the importer of record) pays customs duties based on the declared value and tariff rate.

This means:

·         Your US customers' costs have increased 15.8% overnight—through no fault of yours or theirs

·         Their margins are evaporating unless they raise prices (risking lost sales)

·         They're actively looking for US-based suppliers who can offer the same products without tariff exposure

·         Your long-standing relationships are at risk because the math simply doesn't work anymore

Your customers aren't abandoning you because they want to—they're doing it because they have to survive.

A Real Scenario Your Customers Are Facing

Imagine your US customer has been buying $100,000 worth of your products annually. With a 15.8% tariff, they now pay $115,800 for the exact same goods. If tariffs rise to 20%, that becomes $120,000. If they're in pharmaceuticals and tariffs hit 200%, a $100,000 order becomes $300,000.

They have three choices:

1.      Absorb the cost and watch their profits disappear

2.      Raise prices and lose customers to competitors

3.      Find a US-based supplier and eliminate tariff exposure entirely

Which option do you think they'll choose?

The Solution: Become a US-Based Supplier and Keep Your Customers

Here's the good news: you don't have to lose these valuable relationships. You can transform from a foreign supplier into a US-based partner—and protect the customer loyalty you've spent years building.

The strategy is straightforward: establish a US entity or partner with a US-based service provider so your American customers can buy from a local company without triggering import tariffs.

How This Works in Practice

Instead of your US customer importing finished goods from you (and paying tariffs), you:

1.      Establish a US company (LLC or corporation) or partner with a US service provider like Forwell

2.      Import components or semi-finished goods (often at lower tariff rates than finished products)

3.      Complete final assembly, packaging, or customization in the US using a small team and warehouse space

4.      Sell to your US customers as a domestic supplier—no import, no tariff

Result: Your US customers buy from a local company (yours), pay no tariffs, maintain their margins, and stay loyal to you. You preserve the relationship, revise your cost structure, and gain a competitive advantage over foreign competitors who haven't made this move.

Two Paths to Becoming a US-Based Supplier

• Option 1: Create Your Own American Entity

Form a US LLC or corporation and establish your own operations. This gives you:

·         Full control over your US presence

·         Direct relationships with US banks, suppliers, and logistics partners

·         Ability to hire your own US team

·         Long-term scalability as your US business grows

Timeline: 3-4 weeks to full operation with the right support

• Option 2: Partner with a US-Based Service Provider (Faster, Lower Risk)

Work with a company like Forwell that already has US infrastructure in place. We become your US operational partner, handling:

·         Entity formation and legal setup

·         Employee hiring and management (via Employer of Record)

·         Warehouse receiving, light assembly, and fulfillment

·         Compliance, payroll, and tax management

·         Banking and financial operations

You maintain your brand and customer relationships—we handle the operational complexity.

Timeline: 2-3 weeks to operational (via EOR), 3-4 weeks with full entity setup

Real-World Example: Saving a Customer Relationship

Let's say you're an Italian furniture manufacturer with a loyal US retailer who's been buying $200,000 annually from you. With 15.8% tariffs, they now pay $231,600—an extra $31,600 that's destroying their margins.

They tell you: "We love your products, but we can't afford these tariffs. We're looking at US-based suppliers."

Your response with Forwell's help:

"We understand completely—and we have a solution. We're establishing US operations in Dallas. Instead of importing finished furniture, we'll import unfinished components (lower tariff rate), complete final assembly and finishing in our Dallas facility, and sell to you as a US-based supplier. No import tariffs on your end. Same quality, same service, better economics for both of us."

What happens:

·         You import components at 8% tariff (vs. 15.8% on finished goods)—you absorb this lower cost

·         You hire 2-3 US employees via Forwell's EOR service for assembly and finishing

·         You lease warehouse space through Forwell's Dallas network

·         Your customer buys from your US entity—zero tariff

·         Your customer saves $31,600 annually and stays loyal to you

·         You maintain the relationship, gain "Assembled in USA" branding, and position yourself ahead of competitors

Why This Strategy Creates Customer Loyalty

When you make this move, you're not just solving a tariff problem—you're demonstrating commitment to your US customers:

·         You're investing in their market and showing you're a long-term partner

·         You're absorbing complexity so they don't have to change suppliers

·         You're providing faster delivery (2-3 days domestic shipping vs. weeks from overseas)

·         You're offering "Made in USA" or "Assembled in USA" branding they can leverage with their customers

·         You're building trust by being physically present and accessible

This isn't just tariff mitigation—it's relationship preservation and competitive differentiation.

Why Dallas, Texas Is the Ideal Location for Your US Operations

Location matters when you're establishing US operations. Dallas offers strategic advantages that maximize your efficiency and minimize costs:

·         Central US location: 2-day ground shipping to 93% of the US population—your customers get faster delivery

·         No state income tax: Texas has no corporate or personal income tax, reducing your operational costs

·         Business-friendly environment: Fast permitting, streamlined regulations, pro-growth policies

·         World-class logistics infrastructure: DFW International Airport (major cargo hub), extensive rail and trucking networks, abundant warehouse space

·         Skilled, affordable workforce: Large talent pool for assembly, logistics, and operations at competitive wages

·         Lower operating costs: Real estate, labor, and overhead costs significantly lower than coastal cities

How Forwell Helps You Become a US-Based Supplier—Fast

At Forwell Furniture and Marketing Services, we specialize in helping international companies like yours establish US operations quickly and cost-effectively. We understand the urgency—your customers are making decisions now, and you need to act fast.

Our Services:

Employer of Record (EOR): Hire US employees in 2-3 weeks without forming an entity. We handle payroll, benefits, HR, and compliance while you focus on serving your customers.

US Entity Formation & Management: We form your LLC or corporation, obtain your EIN, set up business banking, register for taxes, and manage ongoing compliance. Operational in 3-4 weeks.

Warehouse & Light Assembly Operations: We connect you with trusted Dallas warehouse partners for receiving, storage, light assembly, kitting, quality control, and order fulfillment. You get infrastructure without capital investment.

Market Entry Strategy & Consulting: We assess your customer relationships, tariff exposure, and product requirements—then design a customized operational model that preserves your margins and customer loyalty.

Compliance & Legal Coordination: We ensure you stay compliant with US employment law, tax regulations, and industry requirements. We coordinate with trusted legal and accounting partners.

Ongoing Operational Support: We don't just set you up and disappear. We provide ongoing support for HR, payroll, logistics, compliance, and customer service—so you can focus on growing your US business.

Why Partner with Forwell?

·         35 years of international business experience: We've helped companies navigate cross-border expansion and understand the challenges you're facing

·         Deep Dallas network: Established relationships with banks, CPAs, warehouse providers, and logistics partners—we open doors for you

·         Boutique, personalized service: You work directly with experienced professionals who understand your business and customers

·         Cost-effective: 30-60% lower cost than enterprise competitors, with transparent, upfront pricing

·         Speed to market: 2-4 weeks to operational—fast enough to save at-risk customer relationships

·         Flexible partnership models: Whether you want full entity ownership or a partnership arrangement, we customize to your needs

The Time to Act Is Now—Your Customers Are Making Decisions Today

Tariffs aren't going away. According to J.P. Morgan, rates will continue rising through 2025 and beyond. Your US customers are evaluating their supplier relationships right now, and every week you wait is another week they're talking to your US-based competitors.

But here's the opportunity: most of your international competitors haven't figured this out yet. If you move now, you'll be ahead of the curve—protecting your existing customers and winning new ones who are desperate for tariff-free suppliers.

Let's talk about your customers. We'll assess which relationships are at risk, evaluate your operational requirements, and design a plan to transform you into a US-based supplier—preserving loyalty and positioning you for growth.

📞 Schedule a free consultation: Let's discuss your customer relationships and how we can help you protect them.

📧 Email: info@forwellmarketing.com

📍 Based in Dallas, Texas—ready to help you become a US-based supplier in weeks, not months.

Your US customers don't want to leave you—they just need you to be a local supplier. Let Forwell help you make that transformation and keep the relationships you've worked so hard to build.