International Market Entry Strategy
We help companies design and implement an international market entry strategy, so that they can scale internationally and amplify their impact in the world.
We help companies to scale internationally by supporting them in three key areas of their business:
10x Strategy
for many companies this is a robust international market entry strategy that is ten times better than their current best thinking
10x Momentum
in other words moving 10x faster into international markets than your current pace
10x Cashflow
cash in the bank is increasing by at least 10% year on year
To get those results, there are three big levers you can pull…
The first lever is Critical Thinking which includes:
- Developing an expanded vision - big picture thinking, rather than a “nickel and dime” picture of what you want to achieve.
- Pursuing deep insights - into the opportunities, threats, strengths, weaknesses and barriers to entry in the countries you’re hoping to enter. Understanding the size and dynamics of each market, who your ideal clients and competitors are and how to appeal and deal with them, appreciating the nuances of each culture and what that means for your team as you begin to work there.
- Getting a robust grip on reality - developing certainty that you can deliver on the vision you’ve developed and that your company is set up to do it.
To get those results, there are three big levers you can pull…
The first lever is Critical Thinking which includes:
- Developing an expanded vision - big picture thinking, rather than a “nickel and dime” picture of what you want to achieve.
- Pursuing deep insights - into the opportunities, threats, strengths, weaknesses and barriers to entry in the countries you’re hoping to enter. Understanding the size and dynamics of each market, who your ideal clients and competitors are and how to appeal and deal with them, appreciating the nuances of each culture and what that means for your team as you begin to work there.
- Getting a robust grip on reality - developing certainty that you can deliver on the vision you’ve developed and that your company is set up to do it.
The second lever is the ability to make Definite Decisions - high-quality choices which you make and adhere to. This is enhanced by:
- Having uncompromising objectives - clear, achievable goals that take you beyond your comfort zone. Without these, you won’t take the risks that you need to take to be internationally successful.
- Knowing your numbers - to make high-quality decisions you need to be across and in control of all the numbers in your business. This includes financial numbers and marketing data.
- Creating a powerful plan - a step-by-step plan which sets out who must do what, by when, to make your vision a reality.
And finally, to get things moving, you’ll need Extraordinary Execution - you must consistently carry out your strategy to a very high standard.
Extraordinary Execution becomes much easier when you have:
- Super systems - across all areas of the company, so that the founders can stop working 80 hours a week and start getting maximum leverage from their time.
- A top team - who are 100% on board with your ‘global vision’ for the company. Ideally, they’ll also have at least 90% of the skills needed to make the vision reality, and be willing to put in 120% effort to get results.
- Active accountability - external observers who give objective feedback, encouragement and counsel on your plans and on progress. We believe that to a large extent, environment dictates performance.
Executive Advisory Program
The Executive Advisory Program (EAP) is our flagship offering in the international market entry strategy space.
It is designed for companies turning over $2M+ and enables us to work with your team across a number of areas, to give you the tools to realise your global vision with minimum stress and maximum impact.
We start with a four-month engagement, as in our experience this is the minimum amount of time that you need to get results. Each month we meet twice to work on the areas that you have identified as priorities, including:
- an hands-on, ‘doing’ workshop, to give you the tools that you need to go global and,
- a 1:1 mastermind session to review your financial dashboard, problem solve, track progress and celebrate wins.
In between workshops, you can reach out to us for support,
whenever you need it.
Our Advisors
Meet our team of trusted international strategy experts
Our Clients
What our clients say
This blog is part of a series adapted from The Global Standard, Cynthia’s forthcoming book on building internationally competitive businesses. In the lead-up to the hardcopy release, we’re unpacking some of the most persistent myths that hold companies back from global growth.
International Business Myths: Success Abroad Relies Solely on Connections
One of the most persistent misconceptions about international expansion is the belief that success hinges on having the right connections: a distributor who can open doors, an investor with influence, or a government contact who can make things happen. It is an appealing idea because it promises a shortcut. If only you knew the right people, your company could go global overnight.
But international business does not work that way. Relationships matter, of course; they can accelerate progress, open opportunities and provide early insights. Yet without the structure to support them, they collapse under their own weight. Connections can open doors, but only strategy, data and disciplined execution can keep those doors open.
In my experience, companies that cling to the “connections-first” mindset rarely achieve true international success. They invest in introductions instead of intelligence and rely on goodwill instead of groundwork. When the first few deals falter because pricing is misaligned, the product is not fit for market, or logistics cannot deliver at scale, they often conclude that the timing was wrong — when in fact the problem was structural.
The truth is that connections are only one gear in a much larger engine. In The Blueprint for International Success I describe the full set of moving parts required to make a business truly global: a crystal-clear strategic vision; market selection based on data, not guesswork; a deep understanding of the ideal international client and what drives them; confidence about which channels to sell through and how to optimise them; marketing that resonates with overseas customers and delivers measurable returns; a sales system designed for cross-border business; the right team; systems that can scale internationally; and tools that allow people to work productively, harmoniously and profitably across time zones and cultures.
To that list, I would add active accountability — external advisers or partners who hold you to account for progress against your strategy and guide and encourage you on the journey. Without these elements in place, no number of connections will carry a company far.
The firms that thrive internationally understand that relationships are multipliers, not substitutes. When supported by clarity, capability and consistent delivery, connections amplify impact. When they stand alone, they lead nowhere.
Looking Ahead
The myth of the “right connections” assumes that influence and access are unevenly distributed — that the global stage belongs only to those already inside the network. The next myth takes that assumption even further, suggesting that global trade itself is a game designed for men.
That idea, too, deserves to be challenged — and it’s where the next chapter of The Global Standard begins.
Table of Contents
In the opening piece of this series, we explored why protectionism doesn’t build prosperity, despite its political appeal. As my forthcoming book, The Global Standard makes clear, protectionist thinking is only one of several outdated narratives that continue to shape how leaders view international business.
The next myth, deeply embedded in the mindset of many mid-market founders, is the belief that international expansion is something only large, well-resourced corporations can pursue.
This assumption may have been true thirty years ago, but today, it is profoundly outdated. In fact, the global economy is now more accessible to smaller companies than at any point in history. And the companies capitalising on this shift are not multinational giants, but founder-led, agile businesses that understand the new rules of global competitiveness.
This blog unpacks why global growth is no longer a corporate privilege, and why founder-led companies are increasingly the ones rewriting the playbook.
The Old Model: Size = Global Capability
For most of the post-war era, going global meant:
- establishing subsidiaries
- travelling extensively
- navigating complex regulatory regimes
- maintaining large international teams
- relying on capital-intensive supply chains
Expansion was bureaucratic, slow, and staggeringly expensive. Only corporates had the teams, capital and infrastructure to shoulder the burden.
But that world is gone.
The New Reality: Global Expansion Has Been Democratised
Three forces – all explored more deeply in The Global Standard – have fundamentally changed the equation:
1. Technology has levelled the playing field
2. Logistics and supply chains have become plug-and-play
3. AI has radically reduced the cost of global capability
Companies can now:
- research markets
- translate content
- localise marketing
- analyse competitor data
- map international customer segments
…in minutes, not months, and often at a fraction of the traditional cost.
These changes have not just lowered the barriers. They’ve changed the definition of “global readiness” entirely.
Global Readiness Is No Longer About Size - It’s About Clarity
In my work advising companies around the world, I see a consistent pattern: the businesses that succeed internationally are not the ones with the largest budgets, but the ones with the clearest thinking. Three factors matter most:
1. Clarity
A company must understand:
- who its international customer is
- why they should care
- what the business uniquely offers that resonates across borders
This clarity is far more important than scale.
2. Capability
Capability today means:
- the ability to deliver consistently
- the systems to support cross-border operations
- the processes to sell and serve internationally
It does not require hundreds of staff.
3. Commitment
Most international failures stem not from ability but from inconsistency – leaders start enthusiastically, then lose focus, momentum or discipline.
Commitment is the differentiator.
These three traits – clarity, capability and commitment – form the through-line of The Global Standard.
Real-World Proof: Founder-Led Companies Are Going Global Faster
The misconception that only large corporations can expand internationally is usually dispelled the moment leaders see what smaller, founder-led companies are achieving when they follow the right strategy. At Dearin & Associates, we’ve worked with hundreds of mid-sized firms across sectors and continents, and we’ve seen firsthand how clarity, focus and a structured framework can propel even modestly resourced companies into global markets at remarkable speed.
The following case studies – all real clients of Dearin & Associates – illustrate this shift. Each company began as a domestic player with limited international capability. None had the size, staff numbers or capital traditionally associated with global expansion. Yet each one achieved rapid, meaningful traction overseas by applying the strategic principles outlined in The Global Standard. Their journeys demonstrate a central truth: in today’s global economy, international strategy matters far more than size.
Survival: Taking First-Aid Global with Precision and Pace
Survival is a family-run Australian business that designs premium first-aid kits for families, workplaces, outdoor adventurers and emergency professionals. The products were exceptional – intuitive layouts, high-quality components, stringent testing – but like many mid-sized firms, the team lacked clarity about how to take their product to the world.
They had interest from international distributors and sporadic overseas sales coming through online channels, but no cohesive strategy to convert this interest into real traction. Their questions were familiar:
Which region should we prioritise?
How do we price for markets with different margins and expectations?
What structure do we need to scale reliably?
When our Senior Advisor for Consumer Products, Mike Todd and I began working with the founders, the first step was to remove guesswork. Market analysis showed that Europe was the natural launchpad, with large outdoor markets, strong appetite for premium safety products, and consumer willingness to pay for quality. With that decision made, we helped the Survival leadership build a structured expansion roadmap, including
- A regionally aligned pricing and margin model
- Distributor selection criteria
- Regulatory pathways for medical products
- A global brand narrative tailored to European consumers
- A trade-show strategy to accelerate visibility
Within months, Survival showcased at ISPO in Munich — a pivotal moment that placed them in front of serious distributors and buyers. With a clear follow-up and conversion plan in place, the company secured partnerships across Europe and the Middle East. By the end of the first year, Survival products were selling in 22 countries, supported by a scalable operating model, streamlined logistics, and a cohesive global brand.
This transformation illustrates a central message of The Global Standard: companies don’t go global because they’re big; they go global because they’re clear.
PumpEng: Overcoming Market Misalignment and Accelerating U.S. Growth
PumpEng manufactures world-class underground dewatering pumps designed for harsh mining conditions. The engineering was strong, the performance exceptional – yet after a year of operating in Idaho, the company struggled to gain traction in the massive U.S. mining sector.
Leadership suspected they had entered the wrong region, but the deeper issue was market misalignment. The U.S. mining market is highly regional, with distinct procurement structures, clusters of activity, and entrenched supplier relationships. PumpEng needed precision, not effort, to win.
D&A’s team began by mapping the entire U.S. market:
- Where mining activity was concentrated
- Which companies dominated procurement
- Competitor positioning and pricing
- Customer pain points by region
- How procurement cycles differed across states
This market analysis revealed that PumpEng had been focusing its energy in a region with limited demand for submersible pumps of their specification. The real opportunity lay in completely different mining states where conditions matched PumpEng’s strengths.
Once their focus shifted, we redesigned their market-entry approach:
- A refined U.S. ideal customer profile
- A sharper value proposition highlighting performance advantages over existing competitors
- A targeted sales plan aligned to procurement cycles
- A channel strategy that prioritised the highest-potential regions
Within three months, sales tripled. Within two years, PumpEng became a serious competitor in the U.S. market – strong enough to be acquired by Franklin Electric in 2025, validating the strength of their technology and strategic positioning.
PumpEng’s story highlights a core principle of The Global Standard: international success depends less on size and more on strategic focus.
Redsbaby — From an Australian Favourite to a Global Challenger
Redsbaby is a family-founded Australian pram and stroller brand built around thoughtful design, strong aesthetics and a deep understanding of parents’ needs. Domestically, the brand grew quickly through a community-first model, but when the founders first attempted international expansion, the results were disappointing.
They invested $80,000 in a major European trade show and left with dozens of business cards… but no meaningful commercial outcomes. The underlying issue wasn’t product quality or brand strength – it was the absence of a structured approach to global expansion.
Redsbaby faced common challenges:
- Pricing that didn’t translate competitively into European markets
- A value proposition that needed localisation
- An internal team stretched across too many priorities
- No system for managing international leads or distributor onboarding
Partnering with Dearin & Associates, the founders stepped back to rebuild their international strategy from the ground up, using the Blueprint for International Success™, which appears later in The Global Standard. Together, we:
- Re-engineered the pricing model to ensure competitiveness across multiple regions
- Adapted the brand messaging for European consumers
- Created a structured funnel for trade-show leads and follow-up
- Defined the team roles required for consistent global execution
- Constructed a distributor strategy and selection framework
Within months, the difference was dramatic. Leads from the previous year were successfully reactivated. The company secured seven European distributors, re-establishing momentum and credibility in the market. Redsbaby shifted from “local hero” to genuine global contender – without needing the headcount or capital of a multinational.
The success of these companies reinforces a key argument of The Global Standard: clarity and systems empower mid-sized companies to scale internationally just as effectively as global giants.
Table of Contents
Over the last few years, my team and I at Dearin & Associates have had the privilege of working with clients and partners across almost every continent. The scope of our work has been wide and varied: different markets, different industries, different business models. And as I’ve reflected on the projects we’ve delivered, one truth has become impossible to ignore:
Working with partners who share your values dramatically accelerates trust, collaboration and results.
Some projects felt effortless, not because the work itself was simple, but because the relationship was. Others required more grit, more communication and more emotional energy than they should have. The difference? Values alignment.
This isn’t just intuition. It is exactly what Stephen Covey describes in The Speed of Trust:
“Trust is the one thing that changes everything.”
When values align, trust is easier to build and renew. And when trust is present, everything moves faster.
Let me show you what I mean.
The Speed of Trust, in Real Life
At its core, trust is confidence in someone’s integrity, motives and capability. When trust is high, communication flows, decisions are simpler and collaboration feels safe, even in challenging moments. When trust is low, everything slows down. Suspicion creeps in. Rework increases. Stress rises. Progress stalls.
Three recent partner experiences illustrate this clearly.
Case Study 1: Shared Values, Shared Success
One of our longstanding global partners is a large multinational organisation whose key leaders share our values. Over the years, we have collaborated on numerous initiatives, and the alignment has always been evident.
When technical challenges arose in one of their service lines, communication intensified through phone calls and email, but the trust never wavered. We knew their intentions were good. They knew ours were too.
As a result:
- Challenges were resolved quickly
- Relationships strengthened rather than frayed
- The work continued to deliver value on all sides
This is the power of aligned values. Even under pressure, the partnership holds.
Case Study 2: Extending Trust and Earning It
In another instance, we worked with a large offshore organisation we had never partnered with before. Neither of us knew whether the other shared our values, but we chose to extend trust and move forward.
Were there challenges? Yes, particularly around timelines and expectations. But because both teams kept communication open and constructive, we navigated the bumps and delivered strong outcomes.
By the end, we had established enough trust and shared understanding to say, “Yes, we can work together again.”
Case Study 3: When Values Do Not Align
And then there are the relationships that teach us what we do not want.
An offshore organisation approached us to collaborate on a major project. There were promising signs early on, so again, we extended trust.
But quickly, cracks emerged:
- Communication was inconsistent
- Expectations about delivery and compensation did not align
- Promises were made but not honoured
- Signals suggested that excellence, integrity and respect were not shared values
As trust eroded, everything slowed down. Stress increased. Momentum evaporated. The relationship became transactional and strained, rather than collaborative and forward-looking.
Ultimately, it became clear that this was not a partnership built to last.
Values Are the Foundation of Speed, Safety and Success
Across these experiences, the smooth, the workable and the uncomfortable, one factor determined the quality of the relationship and the pace of the work:
How closely our partners’ values aligned with ours.
At Dearin & Associates, we are guided by four core values that anchor how we operate internally and externally:
Integrity
We do what we say we are going to do, transparently, ethically and honestly.Excellence
We strive for high standards, continuous improvement and world class outcomes.Respect
We honour people, perspectives and cultures, listening deeply and communicating openly.Fun
We choose to enjoy the work, the journey and the people we work with.These values shape our decisions, our culture, our client experience and our impact in the world. They are not negotiable.
When partners share them, everything accelerates: trust, momentum, outcomes. When they do not, everything slows: communication, clarity, progress.
So What Have I Learned?
Simply this:
I only want to work with people and organisations that share our firm’s values.
When values align, collaboration becomes a force multiplier. When they do not, no commercial opportunity is worth the cost.
As leaders, we often underestimate the strategic advantage of choosing partners wisely. But values alignment is not soft. It is not a nice to have. It is a business accelerator. It is a risk mitigator. It is a cultural safeguard. And it is the foundation for creating work that is not only commercially successful but deeply satisfying.
If you are building partnerships, exploring international markets or scaling your organisation, make values alignment a non negotiable. It will change the quality of your outcomes and the experience of achieving them.
And it will change the speed of trust.
Maintaining brand consistency is the foundation for building trust and loyalty with your customers. But when expanding internationally, simply sticking to the same formula won’t cut it. Adapting your brand to align with local cultures, norms, and preferences is just as critical for success. Get it right, and you can tap into new markets and boost your bottom line. Get it wrong, and you risk poor sales—or even legal challenges. In this blog, we’ll explore how SMEs can strike the perfect balance between brand consistency and localization, and share proven strategies and real-world examples to guide your global journey.
Why Brand Consistency Matters
Brand consistency is more than just maintaining a uniform logo or color scheme—it’s about delivering a cohesive experience that resonates with your audience and builds trust. According to Forbes, maintaining consistent branding can increase revenue by up to 33%, underscoring its impact on financial performance. Similarly, Salesforce reveals that 90% of consumers expect their interactions with a brand to be consistent across all platforms and locations, regardless of where they are.
Consistency fosters familiarity and trust, representing key elements of a loyal customer base. However, when expanding internationally, maintaining this consistency can be both complex and costly. This is where brand localization comes in, allowing you to adapt your brand to meet the unique needs of local markets without sacrificing your core identity.
The Role of Localization in Global Success
When expanding internationally, there’s no one-size-fits-all solution. Different markets have unique cultures, consumer behaviors, and preferences, meaning what works in your home market may fall flat elsewhere. Localization bridges this gap. In fact, a McKinsey report found that 80% of companies with localized product offerings outperformed their competitors in market share.
Take McDonald’s, for instance. To cater to India’s predominantly Hindu population, where beef consumption is uncommon, McDonald’s swapped its signature beef burgers for vegetarian options like the McAloo Tikki. This cultural adaptation helped McDonald’s thrive in India, resulting in over 500 successful outlets across the country.
Proven Strategies for MSMEs
1. Conduct In-Depth Market Research
Market research is essential, yet it’s often overlooked. Avoid costly mistakes by:
- Engage Local Experts: Consider engaging cultural advisors or our Market Ranking Report service to help you gain a better understanding of your market’s cultural and consumer landscape.
- Leverage Free and Affordable Tools: Use free resources like Google Trends, Statista, and social media insights to supplement your understanding of consumer behavior and trends in your target market.
- Pilot Testing: Pilot your product online in your target market through platforms like Amazon or local e-commerce sites to test demand with minimal investment.
Case Study: Netflix in India
Netflix’s success in India can be attributed to its extensive research into understanding local content preferences. For example, they identified the growing demand for regional-language programming and Bollywood-style storytelling. In response, they invested heavily in original Indian series and movies, creating hits like Sacred Games and Delhi Crime. These efforts paid off, with Netflix India reporting a 49% net profit increase in 2024.
2. Customise Products and Messaging
Tailoring your products and messaging to reflect the cultural and practical needs of your target market does not have to be drastic and expensive. Here’s how:
- Prioritise High-Impact Customisation: Focus on small but meaningful changes, such as adjusting the packaging design, adding culturally relevant flavours, or translating key product descriptions and marketing materials according to the market’s language.
- Seek Direct Feedback: Engage with local customers via surveys and social media polls to understand their preferences.
Case Study: Coca-Cola’s “Share a Coke” Campaign
Coca-Cola customized its global “Share a Coke” campaign by personalizing labels with popular local names in each market. In Australia, where the campaign originated, sales grew by 7%, and the idea quickly expanded to over 70 countries, each adapting names to fit cultural norms and trends.
3. Leverage Local Partnerships
While entering a new market feels foreign, this does not mean that you have to do it alone. Partnering with local businesses can ease your entry into new markets:
- Collaborate with Small Local Businesses: Partner with local retailers, influencers, or communities to help you gain market access and credibility without all the heavy upfront investment.
- Join Trade Networks: Look for international SME trade alliances or government programs that connect small businesses to trusted international partners.
Conclusion
Building a global brand isn’t about choosing between consistency and localization—it’s about finding the perfect balance. By staying true to your core identity while tailoring your approach to meet local needs, you can build trust, connect with diverse audiences, and achieve sustainable growth.
Localization isn’t a compromise. It’s a powerful tool that elevates your brand to the forefront of consumers’ minds worldwide. Ready to take the leap? Let us guide your next steps.
Expanding into international markets often involves partnering with contract manufacturers (CMs) to scale production. When done right, a reliable CM can reduce costs, boost efficiency, and help you meet global demand.
But this decision is far from straightforward. Too many companies dive into international expansion, assuming their contract manufacturer will just “figure it out.” However, poor due diligence at this stage has derailed product launches, triggered legal disputes, and permanently damaged reputations. According to a 2024 McKinsey survey, many companies attribute poor visibility into their contract manufacturers as a major cause of delays and disruptions in product delivery.
So, how do you avoid the pitfalls and find a CM that’s right for your business? In this blog, we unpack the most common mistakes and how to steer clear of them.
Mistake #1: Chasing the Cheapest Quote
If a price seems too good to be true, it probably is.
A US-based wearable tech startup learned this the hard way. Attracted by a Southeast Asian CM offering rates 30% below competitors, they ignored warning signs. Within six months, customer complaints flooded in: overheating batteries, failing devices. The startup was forced to do a full product recall, costing millions and scarring their brand reputation.
Lowball quotes often signal poor quality control, underpaid labour, or outdated equipment. According to a 2023 report by SupplyChainBrain, 61% of surveyed companies indicated that up to half of all product recalls could be traced back to supplier issues, many of which stem from inadequate oversight or cost-cutting measures by manufacturing partners.
Pro tip: Focus on value, not just price. Look at the CM’s capabilities, certifications, and long-term viability.
Mistake #2: Accepting Vague or Incomplete Quotes
An incomplete quotation is a ticking time bomb. If a CM’s quote isn’t crystal clear about what’s included, such as tooling, shipping, testing, and compliance, it’s almost guaranteed that surprise costs will show up later.
One Australian medtech company accepted an attractive quote without realising it excluded compliance testing and customs duties. Their actual costs ballooned 35% beyond budget, compromising their launch timeline.
Pro tip: Request a detailed quote with a complete cost breakdown. Ensure responsibilities are clearly defined, and never sign off until you understand every line item.
Mistake #3: Choosing a CM Without Product Fit
It’s tempting to go with a CM that boasts impressive clients and a slick sales pitch, but do they have experience manufacturing your type of product?
A consumer electronics brand selected a high-profile CM to produce a children’s wearable. Unfortunately, the CM lacked experience with child safety standards. Regulatory issues in Europe and Australia delayed multiple shipments, crippling their supply chain and jeopardising retail partnerships.
Pro tip: Choose a CM with experience in your product category and a solid track record navigating your industry’s regulatory landscape.
Mistake #4: Failing to Vet Ownership and Subcontractors
Who actually owns the factory? Are they financially stable? Do they subcontract without your knowledge?
A fitness tech brand learned the importance of these questions too late. After six months of smooth production, their China-based CM stopped replying. The factory was in the middle of an ownership dispute, and the company lost all its tooling and inventory.
Pro tip: Conduct background checks on your CM’s ownership structure and demand transparency about subcontractors. Site visits and third-party audits can be worth their weight in gold.
Mistake #5: Skimping on IP Protection
Your CM is not just a partner; they could also become a competitor.
That’s what happened to a UK electronics firm. They didn’t secure robust IP terms in their contract. Two years in, their CM was selling an identical product in emerging markets under a different label. Despite legal action, the damage was done.
Pro tip: Use contracts that clearly define IP ownership, tooling rights, and enforceable dispute resolution mechanisms in jurisdictions you can trust. Consider registering your IP in your CM’s country as well.
Mistake #6: Overlooking the Importance of NPI Communication
New Product Introduction (NPI) is where great ideas often fail in execution.
A hardware startup handed a loosely defined bill of materials to their CM and assumed things would run smoothly. But the CM sourced mismatched components, leading to system failures and a missed retail launch.
Pro tip: A good CM should ask questions, flag concerns, and collaborate closely during the onboarding and prototyping phase. If they’re passive early on, expect major issues later.
Mistake #7: Allowing Hidden Subcontracting
Who’s really making your product? If you don’t know, you could be liable.
An EV parts manufacturer found out too late that their CM had quietly outsourced production to a third-party factory with lax safety practices. A fire broke out. Lawsuits followed. Though they’d never met the subcontractor, the client was held accountable.
Pro tip: Your contract should prohibit unauthorised subcontracting. Demand visibility into the full supply chain and audit as needed.
Conclusion: Do Your Homework
Choosing the right CM isn’t just about ticking boxes; it’s about making sure your partner is aligned with your standards, communicates transparently, and shares your long-term interests.
Because when it goes wrong, it’s not just a manufacturing hiccup. It’s your brand, your revenue, and your reputation on the line. Take the time to assess thoroughly, ask the uncomfortable questions, and don’t settle for shortcuts.
“The bell on a tiger’s neck can only be untied by the person who tied it.”
– China’s Ministry of Commerce
Tensions between the US and China are escalating once again. Both countries have recently imposed steep tariffs on each other’s imports — in some cases, as high as 125%, with certain Chinese goods now facing levies of up to 145%.
While electronics like smartphones and laptops have been temporarily spared from the steepest US tariffs, they’re not off the hook just yet – a new “national security” tariff is expected to hit these goods within the next two months, with the US justifying that critical tech must be manufactured in America.
At this point, it just seemed like a war of numbers, but what do they actually mean for business owners – especially those crossing paths with the US and China? In this blog, we unpack what’s covered by the latest tariffs, who’s most at risk, and what your business can do to stay ahead in an increasingly fragmented trading environment.
What’s in the Crosshairs Now?
From the U.S. side, current tariffs now cover a wide range of Chinese goods, including:
- Textiles and apparel – key components for construction and manufacturing
- Industrial machinery – critical for manufacturing and construction
- Home appliances – refrigerators, washing machines, microwaves
And there’s more to come. US Commerce Secretary Howard Lutnick has flagged that a new set of national security tariffs will soon target electronics, aimed at encouraging domestic production of strategically important tech.
While US tariffs aim to shield American industries, the reality is far more complicated. In today’s economy, a product is rarely entirely manufactured in a single country; it’s typically designed with parts from across the globe, including the U.S.
Take smartphones, for example: they might use U.S.-designed chips, Chinese assembly, and parts sourced from Europe or Southeast Asia. A 125% tariff on the final product disrupts every stage of that chain — hitting margins, delaying production, and increasing end prices for consumers.
Moreover, while relocating production to the U.S. may provide a solution for some companies, it’s not a quick fix. Labour costs are higher than in China. Energy is more expensive. And setting up new factories doesn’t happen overnight.
China, in response, has imposed its own 125% tariffs, striking back at core U.S. exports:
- Agriculture – soybeans, pork, wheat, dairy, seafood
- Automotive – American-made vehicles and parts
- Technology – semiconductors, telecommunications equipment
- Energy – LNG and crude oil exports
These industries are not randomly targeted – they are sectors critical to the US economy. By targeting these sectors, China is turning up the heat on American policymakers.
Three Ways These Tariffs Could Hit Your Business
1. Supply Chain Disruptions
If your business relies on parts, raw materials, or finished goods from either country — or from suppliers that do, brace for impact.
As companies scramble to shift production or sourcing to alternative manufacturing hubs like Vietnam, Mexico, India, or elsewhere, demand is outpacing supply. That means longer lead times, higher costs, and more uncertainty. For firms heavily dependent on lean inventories or just-in-time logistics, even minor delays can lead to severe backlogs. One of my colleagues runs a business that includes semiconductors as component parts. He says,
My primary concern is damage to the global supply chains. I still have nightmares from the days post [COVID-19] pandemic when certain semiconductors we relied upon went from 3 weeks to 52 or more. It nearly killed the business.
2. Margin Pressure and Pricing Dilemmas
With higher import costs, businesses are facing a tough choice: absorb the extra cost, or pass it on to customers.
For Micro, Small, and Medium Enterprises (MSMEs), neither option is ideal. On one hand, they don’t have the luxury to cushion these costs, which can squeeze margins to the point where growth stalls—or reverses. On the other hand, raising prices could make you less competitive, especially in price-sensitive markets.
3. Forced Strategic Repositioning
With the U.S.-China trade dynamic shifting so dramatically, many businesses are reassessing their global strategies.
We’re seeing a rise in:
- Nearshoring – relocating production closer to home
- Supplier diversification – reducing dependency on any single country
- Market reorientation – exploring regions with favourable trade deals and fewer barriers (FTAs)
Looking Ahead: A More Fractured Trade Landscape
With no sign of a de-escalation between the U.S. and China, these tariffs might not just be a phase. If anything, the introduction of national security tariffs signals a deeper ideological shift in US trade policy – one that prioritises domestic manufacturing and economic self-sufficiency.
For businesses operating internationally, this is a wake-up call. It’s no longer just about cost-cutting or chasing the biggest market. Success now depends on building supply chain resilience and a robust international blueprint.
At Dearin & Associates, we specialise in helping MSMEs navigate complex global environments. Whether you’re reviewing your supply chain, exploring new export markets, or adapting your growth strategy to meet today’s challenges, we’re here to help.
Book a complimentary strategy session with one of our international business advisors to explore how we can help fortify your business against external shocks.
Enjoyed this article? You might also like my piece, “Why April 2 Wasn’t a Shock – If You’ve Been Paying Attention?”. It unpacks how the US has historically used tariffs as a strategic tool — and its impact on the global economy.
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