US tariffs on China significantly change the landed-cost equation for ungated wholesale products when you compare Chinese sourcing to nearshoring from Mexico. Tariffs on many China-origin consumer goods can exceed 100% effective rate once Section 301 and related duties are layered in, which can easily translate into several dollars added per unit on mid-priced Home & Kitchen items.
By contrast, Mexican-origin goods typically face standard MFN or preferential duties in the 0–10% band under current trade arrangements, dramatically lowering customs cost per unit for similar SKUs.
On a practical level, if a Clorox-equivalent cleaning or storage product costs, for example, $4 landed from China after tariffs, the same functional item sourced from Mexico might land at $2–$3.50, creating a $2–$5 per-unit advantage even after accounting for roughly 20% higher labor and factory costs in Mexico.
Faster transit times, often about one week by truck or short sea versus roughly a month door-to-door from China. Also reduce in-transit capital lockup and stockout risk, improving inventory turns. Combined, lower duties plus faster replenishment can easily add around 10–12 percentage points of net margin to an otherwise identical ungated Home & Kitchen or Household SKU.