Exposing a false tariff claim with trade data
At a glance
- A supplier claimed tariff-related price hikes due to Chinese sourcing
- ImportGenius revealed the products were actually coming from Vietnam, tariff-free
- The price hike was blocked, avoiding an estimated $1M+ price hike annually
- The company adopted trade data as a standard part of its sourcing strategy
- Contracts were shifted to more transparent, lower-risk suppliers
Background
A U.S.-based manufacturer relied on a longstanding supplier for OEM-grade robotic equipment and components used across multiple its production facilities. These parts were crucial to maintaining product quality and efficiency across multiple manufacturing plants.
When the supplier suddenly announced a steep price increase, claiming newly imposed U.S. tariffs on Chinese goods, the manufacturer’s procurement team wanted proof before signing off. With margins already tight, they needed to know: Was this tariff hike legitimate, or an opportunistic markup?
Challenge
The supplier claimed the parts originated in China and were subject to new U.S. tariffs. But the manufacturer had no independent way to verify this and suspected the increase might be exaggerated or even false
The procurement and compliance teams raised a critical question: Are we really paying more because of tariffs, or is something else going on?
Solution
The manufacturer turned to ImportGenius to investigate. Using the platform, they accessed verified global shipment records tied to the supplier's product category,part numbers, and HS codes.
Here’s what they uncovered:
- A supplier claimed tariff-related price hikes due to Chinese sourcing
- ImportGenius revealed the products were actually coming from Vietnam, tariff-free
- The price hike was blocked, avoiding an estimated $1M+ price hike annually
- The company adopted trade data as a standard part of its sourcing strategy
- Contracts were shifted to more transparent, lower-risk suppliers
In short, the supplier’s justification didn’t hold up. The data proved the increase had nothing to do with tariffs
Outcome
- The price hike was rescinded.
- The incident triggered a full audit of vendor sourcing and pricing practices.
- Procurement estimated over $1 billion in annual cost avoidance from tariff-related overcharges across its procurement pipeline
Results & strategic shift
This incident became a turning point. Armed with trade intelligence, the company confronted the supplier and successfully blocked the unjustified price hike. The supplier’s misrepresentation was documented, and the manufacturer used this evidence to renegotiate terms and audit the entire sourcing arrangement
The company now uses ImportGenius to:
- Verify supplier claims around country of origin and tariff exposure.
- Identify new sourcing partners in non-tariff regions like Germany, Mexico, and Vietnam
- Pre-vet vendors based on sourcing transparency and compliance.
- Negotiate better pricing by uncovering true manufacturers behind intermediary resellers.
Procurement policy changed:
- Chain-of-custody and country-of-origin verification is now required
- Contracts have shifted away from high-tariff regions toward higher quality, lower-risk suppliers
- Trade intelligence is embedded in supplier onboarding and review
Conclusion
This case illustrates the importance of verifiable trade intelligence in modern manufacturing. When pricing, tariffs, and sourcing are in flux, accurate data becomes a strategic asset, protecting margins, enhancing supplier relationships, and guiding global procurement decisions with confidence.
By using ImportGenius to verify supplier claims, the company uncovered the true origin of its goods and avoided a major cost increase. This also opened the door to new sourcing strategies in tariff-free regions, helping the team build long-term resilience into their supply chain.
And by going beyond tier-1 visibility, they gained a deeper understanding of their supply network, ensuring they knew exactly where their products were really coming from.
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