How Crowdfunding Campaigns Can Navigate Tariffs

Bringing a product to life through Kickstarter or Indiegogo is already a high-stakes journey, from design and development to manufacturing and fulfillment. But in 2025, there’s another layer campaigns can’t ignore: tariffs, which are now as high as 245% on imports from China. With trade tensions rising and new policies on the horizon, the cost to manufacture and deliver your product could change overnight.

This doesn’t mean you should delay your campaign. It means you need to plan smarter. Crowdfunding campaigns can navigate tariffs successfully if they take the time upfront to understand the risks and build a flexible supply chain strategy. In this blog, we’ll walk through the key things to consider so you can navigate tariff uncertainty, avoid surprises, and keep your campaign on track.

Why Crowdfunding Campaigns Need to Think About Tariffs

Crowdfunding campaigns operate on tight timelines and even tighter budgets. Whether you're a startup launching your first product or an established brand testing a new idea, the last thing you want is to be caught off guard by unexpected tariff costs.

Tariffs can shift quickly, sometimes after you’ve already sourced components or locked in your pricing with backers. And unlike traditional product launches, crowdfunding campaigns often have little room to absorb sudden changes in cost or lead time. If a new tariff hits while your product is mid-production or preparing to ship, it can eat into your margin or force you to delay delivery.

That’s why it’s critical to think about tariffs early. Understanding how they might impact your total landed cost and how quickly the rules can change will help you avoid last-minute scrambles and protect your campaign’s reputation. Planning now gives you the flexibility to adjust if needed, so you can fulfill your promise to backers and maintain your momentum.

Understand How Tariffs Work

Tariffs aren’t just a flat fee added to your product, they’re based on specific rules that depend on what your product is and where it comes from. And those rules can shift, especially during times of trade uncertainty like we’re seeing now.

Here are the basics:

• Tariffs are tied to the HTS code (Harmonized Tariff Schedule) assigned to your product. This classification determines the duty rate.

• The country of origin matters more than the country of shipment. Even if you're assembling or shipping from a low-tariff country, if the key components come from a higher-tariff country, like China, you may still be subject to those higher rates.

• “Substantial transformation” is what defines the country of origin. This means that if the product undergoes a major change in function or form in another country, it might qualify for a different origin. But it’s not always clear-cut and often up to customs to interpret.

Most importantly, tariff policies can change without much warning. A product that isn’t subject to duties today could be hit with a 25% tariff tomorrow. That’s why you can’t just check the rates once and forget about them. If you’re running a campaign, you need to monitor changes and build flexibility into your supply chain and pricing strategy.

Understanding these rules now allows you to build a plan that won’t unravel halfway through production.

Why Country of Origin Matters

For many crowdfunding campaigns, the assumption is that if you're shipping from a country like Vietnam, Thailand, or Mexico, you’ve avoided the worst of the tariffs. But that’s not always the case. What really matters is the country of origin, not the country of shipment.

The country of origin is determined by where the product underwent its substantial transformation, which is a specific legal definition. If you’re assembling a product in Thailand, for example, but the core components or subassemblies come from China and haven’t changed significantly in function, customs may still classify your product as of Chinese origin, meaning it’s subject to the full China tariff rate.

This can be a surprise to many first-time campaigners. You may think you’re in the clear because you moved final assembly outside of China, only to find that your landed costs are still affected by tariffs due to how customs defines origin.

Planning for the country of origin early helps you make smarter decisions about where you manufacture and how you source components. It can also give you time to structure your supply chain in a way that meets your campaign’s budget and delivery goals, without triggering unnecessary duties.

How to Build a Flexible Supply Chain Plan

You don’t need to lock in a fully global logistics strategy before your campaign launches, but you do need a supply chain that can adapt if the situation changes. Tariffs, shipping delays, and material shortages all have the potential to disrupt your plan. The more flexibility you build in now, the easier it will be to pivot later without disappointing backers.

Start by working with your supplier to understand what options are available:

• Can they offer assembly in multiple countries, such as China and Thailand?

• Can key components be sourced from alternative regions, not just China?

• What’s their lead time to switch locations if new tariffs hit?

• Do they understand country-of-origin rules and how to build your product in a way that qualifies for a different origin if needed?

If you're still selecting a manufacturing partner, prioritize those that can offer multi-country production or have experience navigating tariff-related shifts. Even if you don’t use these options right away, having them on the table gives you room to react.

A flexible supply chain doesn’t mean overcomplicating things. It means planning smart, giving yourself backup paths so you’re not boxed in if a new regulation or tariff change comes into play mid-campaign.

Communicating With Backers

Backers don’t expect perfection, but they do expect transparency. If tariffs or supply chain shifts affect your cost, schedule, or fulfillment plans, it’s much better to explain it clearly than to stay silent and hope for the best.

The key is to frame the message around preparation, not panic. Let your community know you’re actively planning for potential changes and have built flexibility into your manufacturing approach. 

You don’t need to dive into tariff codes or logistics details. Instead, keep the message simple:

• You're monitoring international trade changes.

• You've built your supply chain to adapt if needed.

• Your goal is to deliver on time, without cutting corners.

And if a change does occur, like a new tariff increasing your landed costs, communicate that early. Backers are much more likely to stay supportive if they feel informed and included in the process. Many understand that unexpected issues can come up; what they won’t forgive is being kept in the dark.

By sharing your planning process and being upfront, you build trust, and that trust is what turns backers into long-term supporters.

Conclusion: How Crowdfunding Campaigns Can Navigate Tariffs

Crowdfunding a product is always a leap, but that leap becomes a lot safer when you’ve planned for the variables that can derail your launch. Tariffs are one of those variables. They’re unpredictable, complex, and often overlooked by first-time campaigners until it’s too late.

But with the right supply chain strategy, you don’t have to delay your launch or compromise your vision. By understanding how tariffs work, planning for country of origin, and building in flexibility, you can protect your campaign’s timeline, budget, and backer trust.

If you’re preparing to launch a campaign and want guidance on how to navigate tariffs, origin rules, or multi-country manufacturing, reach out to EPower Corp. We’re a contract manufacturer with production facilities in China and Thailand, and we work closely with campaigners and product teams to help them go from development to production and then scale up for mass production.