What we will do facing the 34% tariff imposed by U.S. government? ReBag Factory solutions

Today we got confirmed that there will be 34\% tariff imposed for all the items to the US customers. Due to the unsure business situations to all our partners, we will do several ways to protect our relationships and try to provide a stable and health markets for all our clients. After disscusion, our solutions like below:

1. Do the cost optimization. we will try to reduce the bag material cost like by applying recyclable material and simplify bag design. e.g, fewer compartments or pockets, reduce the bag accessies or unnecessary labels. Also, we will negotiate with our fabric material suppliers again for discount or bulk pricing to offset tariff cost. 

2. Share the cost absorption. For the vip partners of us, we will split the tariff burden with U.S. CUSTONERS. Each 17 rate or we 20\% then 14\% depends on the project amount. 

3. DDP delivery terms will be more applied by us, so that we can take responsibility for tariffs in exchange for higher FOB prices, simplifying logistics for buyers. 

4. We will devote more to expand the customers need customize bags from EU, ASEAN or Middle East where tarffs are lower. 

By combining these steps, hope to redcue the tariff impacts while maintaining competitivveness and customer relationships.Thanks for you time and all your kind support