Discover how MPD protected customers when tariffs spiked by absorbing costs, rethinking logistics and preserving margins, reinforcing its standing as a reliable partner.
When the US government imposed a series of tariffs on Chinese imports—including a broad range of electronic components—many manufacturers were caught off guard. The sudden spike in import costs placed immense pressure on supply chains, profit margins and customer relationships.
For Memory Protection Devices (MPD) the tariffs presented a logistical and moral challenge. Should it pass these costs onto loyal customers or find a better way? MPD chose to protect its customers by absorbing much of the financial burden and exploring creative, often complex, ways to minimize tariff exposure.
This difficult and prolonged journey tested the agility of MPD’s logistics, finance and compliance teams. Overnight, MPD reevaluated its global supply chain, re-engineered shipping strategies and reclassified hundreds of SKUs. Significant internal resources were directed toward analyzing Harmonized Tariff Schedule (HTS) codes to ensure each product was classified correctly to prevent overpayment of duties. MPD also engaged customs brokers, legal advisors and government channels to confirm compliance while containing rising costs.
Another massive undertaking involved the activation of MPD’s Hong Kong warehouse as an alternative shipping hub. This meant building new workflows, training staff on international fulfillment and coordinating with freight partners. This logistical maneuver bypassed certain US tariffs, allowing international customers—and some domestic ones—to receive product at a lower cost.
Despite all this effort, MPD still chose to absorb a portion of the tariff costs itself, a clear statement that MPD values long-term partnerships more than short-term financial gain.
Customer benefits were significant. Distributors and OEMs relying on MPD maintained pricing stability, avoiding disruptions to their own sales pipelines. Many avoided redesigning products due to cost-prohibitive component changes or delays while sourcing alternatives. MPD helped customers protect their profit margins, maintain delivery schedules and uphold contract obligations with end users.
This support created trust, with customers recognizing MPD as true a partner. In a market where loyalty is often transactional, MPD has earned something much more valuable: credibility. MPD has reinforced its reputation as a reliable, ethical and solutions-driven supplier, proving companies that prioritize customer success in times of crisis tend to emerge stronger, with deeper relationships and a competitive edge.
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