Transforming Uncertainty into Strategy: Dukal's Tariff Response

Transforming Uncertainty into Strategy

Dukal's Tariff Response

Recent changes in US tariff policy are disrupting already complex global trade challenges. No longer just a tool to protect domestic industries or raise revenue, they are now also used as geopolitical leverage, introducing new challenges that face manufacturers with unpredictable shifts.

Today's tariff challenges demand a coordinated, multidisciplinary approach—one that brings together sourcing, quality, supply chain, and finance leaders to navigate disruption and build long-term resilience.

Proactive cross-functional alignment

Immediately following the announcement of proposed tariff changes at the beginning of 2025, Dukal launched a cross-functional and global effort, with teams focused on vendor diversification, risk mitigation, supply chain optimization, and strengthening stakeholder relationships.

Vendor diversification

Over the past several years, Dukal has worked to establish alternate manufacturing locations for all products. While the original intent was to diversify the supply chain, this investment allowed Dukal to reduce tariff exposure significantly. Where risks persisted, the company launched an aggressive, ongoing review of the global landscape to ensure its products continue to meet the highest quality standards while remaining competitively positioned within the market.

Strong stakeholder relationships and quality standards

Dukal retains full ownership of quality and regulatory processes across every factory; these rigorous practices and continuous on-site audits safeguard Dukal's commitment to uncompromising quality.

Accelerating packaging flexibility through in-house design

Building on this foundation of operational control and consistency, Dukal leveraged its in-house design team to deliver rapid turnarounds for art and packaging requests, enabling swift adjustments in response to dual sourcing or production shifts. By maintaining direct control over design and artwork approvals, the company was able to implement packaging changes quickly across multiple facilities, minimizing delays and ensuring continuity in both supply and branding.

Enhancing operational agility and risk mitigation

Dukal's dual sourcing strategy, supported by Dukal InSight, reinforces supply chain resilience and enables rapid, data-driven responses to industry changes. By coordinating

production across multiple facilities and maintaining complete visibility into the supply chain, Dukal not only mitigates disruptions but also enables pricing stability, delivering customers confidence in an unpredictable trade environment.

Driving resilience and customer confidence

By combining cross-functional alignment, strategic vendor diversification, rigorous quality oversight, and Dukal InSight, Dukal strengthens supply chain resilience and stability. These efforts enable the company to respond quickly to industry changes while consistently delivering reliable, high-quality products and long-term value to customers.