Zefyr Solutions

The date for implementation of reciprocal duties is communicated as April 2nd - but we think April 1st is MUCH more appropriate. Reciprocal might sound easy and logical? Let’s do that math on it - There are currently 166 countries that are members of the World Trade Organization (WTO). All these countries have, since the end of WWII, agreed to the Most Favored Nation principle. The MFN duty rate means that while each country can set their own rate for a certain commodity, they charge the same duty rate no matter what MFN country that commodity is imported from. (Remember that duty is not the same as tariff). This change suggests a reciprocal duty structure which would end the MFN principle, and the US would have bilateral tariff relationships with each country. In the current U.S. tariff system, the 98 chapters cover approximately 15,000 unique commodities, or about 3,000 pages, fitting into a 6-inch binder. Under a reciprocal tariff system, where the U.S. imposes a unique tariff rate for each of the 160 WTO member countries on every one of the 15,000 commodities, the total number of tariff classifications would expand to 2.4 million unique tariff lines. The tariff schedule would grow to 480,000 pages, requiring a 960-inch (or 80-foot) stack—equivalent to an eight-story building. April fools? #tariffs #footwear #apparel #supplychain #zefyrexperts

On the eve of the next tariff deadline, the White House made a last-minute adjustment to its February 1st proclamations on duties for Canadian and Mexican origin goods - the previously announced ban on de minimis treatment for imports from Canada and Mexico is now on hold. Instead of taking effect immediately, the ban will remain paused until the Secretary of Commerce confirms that "adequate systems are in place" to track and collect tariffs on these shipments. (Considering this is 4M shipments per day - that might take a minute). The delay on De Minimis does not change the broader tariff picture, and barring some last minute deals with Canada, Mexico and China, the tariff picture as of March 4 will look like this: Canada: 10% on energy and energy products, 25% on all other products, including apparel and footwear Mexico: 25% on all products, including apparel and footwear China: 20% on all products, including apparel and footwear (doubling from 10% under IEPPA) These new duties will be in addition to existing costs, including standard U.S. duty rates, antidumping/countervailing duties, and Section 301 tariffs. The White House could still announce a last-minute deal with Canada, Mexico, or China, but as of now, there’s no indication that any such agreements are in place. Still trying to wrap your head around all these changes? We understand. Contact our team for a discussion today. https://lnkd.in/eiVMj2BQ #tariffs #footwear #apparel #supplychain #zefyrexperts

Partner Spotlight: Introducing the 101 Group! In 2024, we shone a spotlight on the incredible people who make Zefyr Solutions exceptional. But one of the secret sauces to our success is the partners we collaborate with – those who complement and expand our skills and allow us to support clients in meaningful, strategic, and often innovative ways. So, we’re excited to roll out the red carpet for 101 Group, our newest partner in consulting solutions excellence. Founded by Paul Herring in 2017, 101 Group specializes in Strategy, Operations, and Technology, with a particular knack for the apparel and footwear world. What makes the 101 Group so special is what they bring to the table: 🔷 101 Solutions: Paul Herring helps organizations optimize operations and implement game-changing strategies. They make complex processes simpler, without ever skimping on the detail. 🔷 101 Cyber: Led by Rob Geurtsen, who built Fortune 100 Security Operations Centers, this advisory practice takes on the tricky world of cybersecurity, making it easy to navigate. 🔷 WWA: Specializing in Fashion Value Chain Advisory, led by Jerris Marr and Eric Johnson, WWA focuses on Product Creation and Line Plan Optimization to deliver fast, impactful results. We’re thrilled to team up with 101 Group, and we know that together, we’ll continue to bring game-changing value to our clients, whether we’re streamlining operations, optimizing supply chains, or creating cybersecurity systems that ensure your business's success. Welcome to the Zefyr Solutions family, 101 Group – let’s make magic happen. ✨ #Partnership #Strategy #Operations #Technology #CyberSecurity #Consulting #FashionIndustry #ZefyrExperts #101Group #GameChangers

With the unfolding tariff drama over the last 24 hours, you may be feeling... frustrated, to say the least. We're right there with you. Read our latest blog for the most recent tariff updates and what you can do now. https://lnkd.in/ezxnZdGp #tariffs #footwear #apparel #supplychain #zefyrexperts

We want to hear from you! What is the largest issue facing your business in footwear and apparel in 2025? 👇

Mexico’s move to ban apparel imports bound for the US under the IMMEX program and slap temporary tariffs on textiles has created waves in the apparel and logistics space. Although these measures are framed as a way to protect Mexico’s textile industry, they might also be a savvy counter-response to early signals from the incoming U.S. administration about potential shifts in trade policies and tariffs. A Preemptive Move? The U.S. president-elect has hinted at a tougher approach to international trade, emphasizing bringing manufacturing back to the U.S. and potentially raising tariffs on imports. Mexico’s new restrictions could be a proactive strategy to shield its local industry from these anticipated changes. By curbing imports and encouraging more local production, the Mexican government may be strengthening its negotiating power before any new U.S. tariffs hit. Implications for Apparel Brands For U.S. apparel brands, this adds yet another layer of complexity to navigating the global supply chain. Recent data suggests that at least 30 of the top 100 Shopify brands leverage the Section 321 duty exemption by shipping through Mexico. Now, major 3PLs in Mexico have declared force majeure, canceling contracts with U.S. brands. Goods already on the ground in Mexico aren’t affected for the time being, but items in transit or still in production will require a fresh strategy. Here’s what brands can consider doing: ✅ Revisit supply chain routes – Consider options like Canada for shipping U.S.-bound goods (unless they originate in China, where further scrutiny may still apply). ✅ Stay on top of U.S. trade policy – Changes could come fast and spur further adjustments in your logistics approach. The Bigger Picture 👇 Mexico’s actions highlight the interconnected nature of global trade. What may seem like a straightforward bid to safeguard 400,000 Mexican textile jobs could also be a show of strength, signaling that Mexico plans to stand firm as the U.S. trade landscape evolves. Given how quickly things can change, brands, logistics providers, and policymakers need to keep their eyes open. Today’s trade moves are about more than just policy—they’re about strategy. If you’re exploring supply-chain alternatives or want expert advice, consider reaching out to Zefyr Solutions. We’ll help you uncover cost-effective routes, anticipate potential hurdles, and navigate new trade barriers. https://lnkd.in/eiVMj2BQ #footwear #apparel #supplychain #zefyrexperts

Earlier this year our team made predictions on what we thought would happen in our industry in 2024. As the year ends we want to reflect on those and see how it all played out. Check out our last blog of the year and let us know your thoughts on whether or not you agree with our year-end wrap-up. Click here to see how we did: https://lnkd.in/e7N-A4vF #footwear #apparel #supplychain #zefyrexperts

https://lnkd.in/gM9MTBwx We are proud to be able to say that our small but mighty team is working with 3 of these amazing companies this year, and are in conversations with one of the others. If we can help companies like this, we'd like to believe we can help yours too. Drop us a line and let's talk.

We are closing out the year with our final team spotlight - our other founder, Dave Kelley. Dave has an M.A. in International Relations from The George Washington University and since starting his career in Footwear in 1994, he has noted some interesting changes - including a more sophisticated consumer awareness and the push for faster leadtimes. "All good Footwear and Apparel businesses start with the consumer, and they drive the changes. We’ve gone from consumers not thinking much at all about how and where their products are sourced, to becoming incredibly informed about the impact that supply chains have on the world," he says. "I started in the industry before there was widespread access to the internet, and email was just starting to come into play. Now, for better and for worse, information spreads at incredible speeds. And while the industry still largely languishes in 18 month (or longer) leadtimes, there is incredible pressure to get faster." As far as what the future holds for the industry, the impact of AI is top of his list: "I love the idea of Demand and Supply Planning being improved by AI, but how it is being used - for instance – to identify possible violations of UFLPA is really interesting. The potential for other uses are endless." And, finally, for Dave there are three important parts of his work that he loves the most: 💡 Team: "I love working with experts who have such a depth of experience and knowledge and incredible value to provide." 🤝 Partners: "I value connecting with people who are passionate about making the Footwear and Apparel industries better." 💙 Clients: "I enjoy working with clients who want to improve, make the world a better place, and collaborate." When Dave isn't working on Zefyr, he enjoys teaching at the UO Sports Product Management Master’s Program, spending time with his family and friends (with great food), and watching University of Oregon football. #GoDucks! #footwear #apparel #supplychain #zefyrexperts

As the industry evolves, Footwear products, processes, and materials are becoming increasingly complex and costly. Having access to skilled footwear artisans and engineers isn't possible for many companies. This is where we can help, regardless of whether you're a brand, a factory, or a material supplier. Zefyr is excited to introduce our newest service: Footwear Innovation and Engineering. With over 100 years of collective experience, we'll partner with you to: ✔️Solve your trickiest challenges and problems ✔️ Deliver innovative products, processes, and materials that differentiate you from the competition. ✔️ Close the gap between your current capabilities and your future state, with practical solutions tailored to your timelines and budgets. Our team brings unmatched knowledge and a global network across: - Advanced product engineering & development: lasts, patterns, tooling, CAD/CAM - Upper manufacturing: knit, cut-and-sew, and cutting-edge methods - Process and manufacturing engineering: Lean practices, innovation in materials and machines - Chemical and material engineering - Innovation at every step of the supply chain 🌍 We've worked in every corner of the globe—Asia, Europe, and the Americas—collaborating with top manufacturers and supply chains to ensure you stay ahead of the curve. Let’s get after the future of footwear together. Email us today to learn more 📨 dk@zefyrsolutions.com #footwear #apparel #supplychain #zefyrexperts