Designing Around Tariffs
Adapt or get left behind. Times are changing faster than ever, and shifts in government administrations, tariff policies, and consumer behaviors are causing confidence to waver. Companies must rethink everything about where their raw materials, manufacturing processes, and labor come from. There is more focus on made-in-America, and it’s not easy. How do you stay competitive when supply chains are in turmoil? The answer is to work with designers who know about designing around tariffs. Industrial designers know how to adapt resources and provide solutions that prepare companies for rapid change and innovation.
STRATEGIC DESIGN
Designers are strategic partners who collaborate with engineers, manufacturers, and marketers to develop products and bring a fresh perspective to problem-solving. They are resourceful and have a knack for solving problems and helping companies pivot when necessary.
If you remove certain resources or put restrictions such as tariffs on imported goods, designers will find ways to supplement them with something new. Applying design thinking and a user-centered approach lets companies quickly adjust to changing market dynamics. The result is strategic iteration and lean solutions that can directly respond to tariffs.
AGILE DESIGN
When tariffs are put in place, companies don’t have the luxury of time to adjust their supply chain, and they need to act fast. Time is money, and good design can save both. Studies find that businesses that integrate design thinking into their development processes increase the number of patents, inventions, and product expansions (Roos, 2016). An agile design process allows teams to think outside the box and iterate new solutions. Market shifts turn into opportunities.
This can be done by introducing locally sourced suppliers and manufacturers, and automating manufacturing processes to save on labor costs. Furthermore, just-in-time manufacturing can omit long lead times for the manufacturing and transportation of goods. When tariffs disrupt the old way of thinking, the design process lets you seize opportunities with new ideas and smarter production.
Take a consumer electronics company that faces suddenly higher tariffs on imported circuit boards. Instead of absorbing the costs, an example of an agile design approach would explore domestic alternatives, modular designs that require fewer components, or automated assembly methods to streamline production.
VALUE ADDED DESIGN
Designers bring a unique perspective that challenges the status quo. They work hand-in-hand with business leaders and industry experts to present quality ideas. Strategic design roadmaps help align business objectives and financial goals. McKinsey & Company reports that companies that excel at design have seen double the revenue and shareholder returns.
It’s not a coincidence; there’s a direct link between utilizing design and having better customer experiences and more market value. Challenges transform into competitive advantages through rapid iteration and adjusting to user feedback. Companies need design thinking to navigate and succeed when facing new hurdles and business complications.
So, how does this work in real life? Imagine a brand that faces rising costs due to tariffs. Instead of cutting corners, they can use design to reimagine their product to streamline materials, optimize production, and enhance user experience. The result? A product that’s not only cost-effective but also more innovative and practical.
RELEVANT DESIGN
There will always be market disruptors, like tariffs, but they don’t always have to be a negative for your business. Even when markets change, companies need to maintain their core values and stay true to quality, craftsmanship, features, and other unique attributes. Designers can introduce creative ways to deliver the same value under new conditions. This is where they shine.
Designers will break down the most vital aspects of the user experience and decide how to adapt and maintain high standards. Staying relevant means you solve problems with flexibility. Planning onshore sourcing and manufacturing allows businesses to maintain production and relevancy to account for new market conditions.
A premium furniture brand is a good example. If tariffs drive up the cost of imported hardwood, the company shouldn’t downgrade to a cheaper alternative. Instead, they can use design to explore sustainable, locally sourced options that align with the brand’s values while maintaining the quality customers expect.
GOOD DESIGN IS NECESSARY
Designers can prepare companies for change. They bring creativity and strategic thinking to the forefront of product development. The designer’s ability to understand consumer needs, challenge norms, and iterate rapidly puts businesses ahead of competitors in dynamic markets. Successful companies recognize that designers are not only creative contributors, but strategic and agile partners necessary for staying relevant as circumstances change.
For more information about designing around tariffs, contact info@startbeyond.com.
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