The Tariff Turmoil: A Wake-Up Call for OEMs

OEMs Face a New Era of Tariff Uncertainty

From the U.S.–China trade war to last week’s round of tariff threats on over 24 nations, OEMs are feeling the jolt. The most recent escalation comes from President Trump’s latest announcements.

From Canada to Brazil: The Scope of New Tariff Threats

• A sweeping 35 % tariff on Canadian goods, effective August 1, citing concerns over fentanyl trafficking 
  

• A record‑high 50 % tariff on Brazilian imports, tied to Brazil's legal actions against ex-President Bolsonaro 
  

• Blanket up to 40% tariffs on nearly two dozen other nations if they don’t agree to new bilateral deals within the 90‑day negotiation window 

The surges in threatened tariffs aren’t just posturing. It’s already sending ripples through industries that rely on core electronic components.

Impact on Electronics and Component Sourcing

• Supply chain strategy chaos With shifts in sourcing to avoid material increases, OEMs are seeing production schedules collapse and costs spike.
  

• Urgent redesigns mid‑cycle Many sourcing teams are scrambling to requote or re-specify components to dodge tariffs altogether.

The Real Risks for OEM Supply Chains

Even the most meticulously planned supply chain is now at risk.

Why Single-Country Sourcing Is No Longer Viable

• Tariff exposure across geographies Dependency on a single-country supply chain becomes a strategic liability.
  

• Procurement paralysis Teams no longer control lead times when negotiations and threats drive uncertainty.
  

• Margin compression Unexpected duties eat into profits.

Mitigation Through Diversification

OEMs must act preemptively to build multi-regional resilience.

• Component cost hedging Secure alternative sourcing in low-risk tariff countries.
  

• Redundant manufacturing locations Balance production across the Americas, Asia, and Europe to shield against national policy swings.
  

• Dynamic sourcing agreements Lock in contingency clauses, inventory buffers, and flexible logistics entitlements with suppliers.

Sanbor Manufacturing: Built for Supply Chain Resilience

We’ve already invested in this future by offering the following:

• Operating factories in Malaysia, Indonesia, Poland, and more Offering built-in backup to any site facing tariff risk. Learn why Southeast Asia is ideal for cost-efficient, tariff-protected sourcing.
  

• Standardized quality systems and manufacturing procedures Ensure component designs can shift countries without re-engineering.
  

• Integrated supply chain oversight Helping OEMs pivot sourcing and manufacturing in real time when tariffs are threatened.

Act Now - Not After the Next Tariff Shock

Today’s tariff moves are more aggressive and unpredictable than ever. For OEMs, the lesson is clear: relying on a single-country supply chain is no longer viable.

Let Sanbor Help You Plan with Confidence

If you want to transform reactive procurement into proactive resilience, Sanbor Manufacturing can help you:

• Shield margins with tariff-mitigation strategies
  

• Guarantee uptime with alternative site planning
  

• Maintain consistency in quality, delivery, and cost

Now is the time to secure your supply chain, not after another round of tariffs.

Contact Us for a Supply Chain Resilience Review

Ready to talk? Contact us today to discuss how we can help you manage your supply chain with confidence. Call us at 610-530-8500 or email sales@sanbormfg.com.