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Struggling with rising tariffs and supply chain chaos? You’re not alone. In this must-watch episode,Patrick Maioho—a sourcing expert with decades of experience—reveals how to:
George: Hello everyone watching, and for those listening later on YouTube or through the podcast. Usually, when someone comes to my attention, they’re talking about their services. I always check with people I know who are selling products and ask who they’ve worked with or who they recommend.
Patrick is someone whose name has come up more than once from people I really respect. He’s been described as one of the best sourcing people out there. Patrick isn’t loud or self-promoting, but there are a lot of people who vouch for him. I’ve even recommended him myself, and the feedback has always been glowing.
So Patrick clearly knows what he’s doing, and it’s a pleasure to have him with us today. Thank you for joining us.
We also have Ben here. Ben isn’t new to the e-commerce space. He’s been my advisor for a long time, offering support and strategic guidance, and he’s now joined the company part-time as a partner-level advisor. I’ve brought him along to ask questions I might miss.
Patrick, let’s start with you. Could you share some background—how you got started and how long you’ve been in this space?
Patrick: Sure. First of all, can everyone hear me okay? Great. My name is Patrick Mayo. I’ve been in sourcing for a couple of decades now. I actually started in sales, which is why I’m so interested in the e-commerce side as well. On a trip overseas, I stumbled into sourcing, and that set me on a new career path.
Over the last 20 years, I’ve worked for large corporations managing annual sourcing spends in the hundreds of millions. These days I employ teams in both China and Vietnam.
I left the corporate world in 2021, right after COVID, to focus on sourcing for other companies. I also run my own e-commerce businesses—I started selling on Amazon in 2014 and have been active in that space ever since.
Right now, I still do a lot of sourcing out of China and Vietnam, but I’m also helping clients reshore or diversify into other regions, including the U.S. It’s been a very busy and very interesting time.
George: Thank you, Patrick. That’s helpful context. I know you even co-owned a trading company in China for a time, correct?
Patrick: Yes. I was a principal investor in a trading company south of Shanghai, which I operated for four or five years. That experience gave me a unique perspective on both sides of the equation—helping international buyers source from China while also supporting Chinese companies trying to export.
George: That dual perspective is valuable. Before we get into tariffs and the U.S. market, I’d like to ask: if you were still running that trading company in China today, how would you be working with U.S. sellers to accommodate the current challenges?
Patrick: The first step would be transparency. I’d sit down with suppliers and walk through the numbers. For example, if I buy something FOB Shanghai for $1 and tariffs add 150%, that $1 product now costs me $2.50. Suppliers need to see the real impact so we can negotiate ways to share or offset that burden.
It’s also important to avoid falling into an “us versus them” mentality. It shouldn’t be the U.S. versus China, or buyers versus suppliers—it needs to be “and.” If both sides treat each other as partners, creative, legal solutions can be found to weather the tariffs together.
Ben: That partnership mindset is key. What practical steps should sellers take right now?
Patrick:
Know your dates. Track exactly when your shipments left port. If a tariff went into effect after your goods shipped, you may not be liable for the higher rate. Documentation matters.
Leverage your freight forwarder. A good freight forwarder and customs broker should be part of your core team. They’ll guide you on HS codes and compliance.
Engage suppliers as partners. Don’t frame tariffs as “killing my business.” Frame it as “impacting our business together” and work on solutions collaboratively.
Those with deep, long-term supplier relationships will fare better than those who only have transactional ones.
George: We’re also hearing about tactical moves like DDP shipping, changing HS codes, bonded warehouses, or transshipping through other countries. Which of these are truly viable?
Patrick: Some can help, but they carry risks.
HS codes: Always review them, but don’t game the system. Misclassification can come back years later with penalties.
DDP: It can work, but abrupt changes raise red flags with customs. If goods are seized, you may not get them back.
Transshipping: Very risky. Unless substantial work is done in the second country, customs may treat it as Chinese-origin goods.
Bonded warehouses: These can buy you time by holding goods until tariffs change or you decide where to ship them. They don’t erase tariff liability, but they give breathing room.
Ben: I was recently in China when the latest tariffs were announced. Manufacturers were initially optimistic, hoping tariffs on other countries would give them a competitive edge. But as more rounds hit China specifically, that optimism faded. Still, they were looking for ways to keep business going.
Patrick: Exactly. That’s why calm, pragmatic collaboration is critical.
George: Longer term, many sellers are considering manufacturing outside China. But China is unique in how vertically integrated it is—you can find a denim factory, and they’ll know the zipper and button suppliers. That ecosystem doesn’t always exist elsewhere. How do you approach sourcing in places like Vietnam or Mexico?
Patrick: It’s harder. In China, everything is connected. In Vietnam, India, or Mexico, you often need to piece together the supply chain yourself—find the cut-and-sew shop, then separately source buttons, thread, packaging, etc. It takes more time, often people on the ground, and a lot of hand-holding. There are also queues forming now as demand rises. Costs in alternative countries may increase due to limited supply.
That said, diversification is critical. Start by finding what a country already does well in your category, launch a product there, and build trust with the supplier. Once that relationship is established, you can gradually transition more products over.
Ben: And for U.S. manufacturing?
Patrick: U.S. capacity is tightening as big players like Ford and GM ramp up orders. Minimum order quantities are higher, but creative negotiation helps—blanket POs over two years, prepaying setup costs, or paying deposits to show commitment. Everything is negotiable if you’re serious.
George: Let’s look ahead. What’s your outlook over the next 90 days?
Patrick: Based on history, tariffs on China are unlikely to disappear quickly. I expect them to remain at least through Q4. For countries like Vietnam or Thailand, I anticipate reductions—possibly significant—if they demonstrate they aren’t just conduits for Chinese goods.
George: And two to five years from now?
Patrick: Sellers should diversify globally. Don’t rely on one country. Look at India, Southeast Asia, even South America and Africa. Build parallel supply chains so you can pivot when disruptions occur. The goal is resilience.
George: Patrick, this has been incredibly insightful. If listeners want to reach out, what’s the best way?
Patrick: Email is best—I always respond. I’m also on LinkedIn and Facebook.
George: Excellent. We’ll add your details in the description for those watching on YouTube or listening via podcast. Patrick, thank you for sharing your expertise. Ben, thank you as well. And thanks to everyone tuning in.