Razor USA has cut its China production from 100% to about 75% and now embeds US duties directly in the factory-gate price, spreading the tariff bill across its factories, its own books, and retailers like Walmart, supply chain VP Bryan Wood told Supply Chain Dive.
How it works: Most importers buy FOB at the exporter's dock and absorb the full duty when goods clear customs.
Razor instead bakes the tariff into the factory-quoted price, so every party downstream negotiates from a duty-inclusive base. "We eat it, Walmart eats it, the factory eats it, and we try to smooth that out as much as possible," Wood said.
The refund track: Razor has also recovered 10% to 15% of the duties eligible under February's Supreme Court ruling, and found the process easier than expected. "I was expecting a lot of documentation, a lot of pushback from Customs, and it's been very, very straightforward," Wood said.
CBP had accepted roughly $85 billion in potential and certified refunds for processing by late May, per a court filing cited by BDO.
The catch: The ruling covers only the reciprocal and fentanyl-related levies. The Section 301 China tariffs, which still apply to the roughly 75% of Razor's output made there, are not refundable, and the administration has appealed the decision that lets importers who never sued claim refunds at all.
Across the sector: Most large importers picked a single lever.
Nike is sharing structural costs with partners against a roughly $1 billion tariff hit, HP moved final assembly so more than 90% of its North America-bound products are built outside China, and Williams-Sonoma roughly halved its China sourcing and absorbed the remaining duties.
Razor is unusual in running cost-sharing and refund recovery at once. Walmart, one of Razor's retail partners, expects up to $2.4 billion in refunds of its own and plans to put the money toward price cuts.
