Domestic Supply Chains Provide Hedge Against Rising Import Tariffs

The shifting trade landscape of 2025 and 2026, characterized by a baseline 10% import tariff and targeted duties on China reaching as high as 145%, has forced a fundamental reassessment of consumer goods supply chains. While many firms struggle with China-dependent models and the elimination of the de minimis loophole, a select group of companies is benefiting from domestic orientation and strategic sourcing. Insteel Industries (IIIN), the leading domestic producer of steel wire reinforcing, has seen imports decline precipitously following the expansion of Section 232 tariffs to derivative products. With only 10% of its revenue exposed to import-heavy categories, the company is well-positioned to capture demand from domestic infrastructure and construction investment. In the apparel sector, Duluth Trading Co (DLTH) reported an 890 basis point jump in gross margin during its fiscal fourth quarter. This growth occurred despite the company absorbing over $7 million in tariff costs, a result attributed to its 'direct to factory sourcing initiative' designed to eliminate middlemen. Similarly, Acushnet Holdings (GOLF), the parent of Titleist and FootJoy, successfully reduced its full-year tariff impact estimate from $75 million to approximately $35 million through deliberate mitigation actions. The company's premium brand positioning provides a pricing buffer that offsets cost pressures. Finally, Lifetime Brands (LCUT) has proactively shifted its operational footprint by acquiring manufacturing assets in Mexico and establishing its own plastics production facilities. These nearshoring efforts allow the company to bypass the volatility associated with long-haul overseas imports.