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Home » One Company's Bid to 'Tariff-Proof' its Supply Chain

One Company's Bid to 'Tariff-Proof' its Supply Chain

An array of digitally rendered blue circles connected by six lines, each bearing an icon depicting different stages in manufacturing, from factories to assembly lines

Photo: iStock / Blue Planet Studio

April 23, 2025
SupplyChainBrain

In a period where many companies have spoken of a need to increase prices for consumers to cover the added costs from new tariffs, hydrogen water flask and filter company Echo says that it has successfully built a "tariff-proof" supply chain. 

According to an April 22 release from Echo, the company made a decision in 2024 to move its production out of China and into the Philippines, in anticipation of tariffs the incoming Trump administration had hinted at for months. 

Today, the company is "operating at full speed," said CEO Josh Carr, and has managed to maintain both its supplies and pricing, despite absorbing the "significant costs" that came with moving away from China. That included tooling and setup fees that had previously been covered by state subsidies from the Chinese government, as well as investments in new supplier relationships and equipment. Even so, Echo estimates that it saved nearly $10 million in 2025 by shifting to the Philippines when it did.

“It’s not just about lead times — it’s about insulation,” Carr said. “We can absorb price volatility because we invested in flexibility before it was urgent.”

President Donald Trump on April 2 rolled out tariffs for most of the U.S.'s trade partners including a 17% rate for Philippine goods. He later imposed a 90-day pause on the new levies, with most countries instead being taxed at a base rate of 10%. China is currently subject to a 145% tariff rate on all exports to the U.S. Executives from Walmart, Target and Home Depot met with President Trump on April 21, according to The New York Times, to discuss the possibility of carving out exceptions similar to the reprieve given to smartphone and computer manufacturers in mid-April. 

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