Country of origin now sets the tariff bill on every peak-season SKU, and a lower factory price no longer guarantees a lower landed cost, according to Rathna Sharad, CEO of cross-border platform FlavorCloud.

"Take the same product, but different origin and there will be a different tariff bill," Sharad told Sourcing Journal. "That's the variable that determines whether a retailer can make margin on an item that's sourced in one place, manufactured in another, held in yet another and sold in yet another."

Her comments land at the operational decision point. Retailers and brands are finalising fall and holiday purchase orders. The landed-cost figure modelled at PO release often no longer matches the figure at customs clearance, once tariff rates, freight and FX have moved.

What is changing the landed-cost math?

Four variables move between the purchase order and the delivery confirmation: tariff classification and rate, ocean or air freight rate, currency moves, and customs treatment at destination. FlavorCloud argues those four together — not the factory price — decide whether a unit clears at margin.

"Sourcing decisions are made months ahead while the economics can change before the product reaches the customer," Sharad said. "Tariffs, freight costs, currency movements and customs requirements all affect profitability."

How should brands price around the volatility?

Sharad splits the pricing question into two commercial decisions: how much of the added cost the brand absorbs, and how much it pushes through to the consumer. The split, she says, is product- and market-specific.

"How much of that added cost can they absorb, and how much can they pass on to the customer without losing the sale?" Sharad asked. A blanket price increase can protect margin on the spreadsheet while making the brand less competitive against local alternatives, she added.

The recommended replacement for a single global price list is a market-by-market pricing matrix, set inside margin guardrails defined by the brand.

What does FlavorCloud sell into that workflow?

The platform handles product classification, duties and taxes, customs compliance and carrier routing. On top of that sits a commerce-intelligence layer that combines landed cost, competitor pricing, market signals and the brand's own performance data, and outputs a recommended price by SKU and destination.

FlavorCloud also ships under delivered-duty-paid (DDP) terms, surfacing the all-in cost at checkout rather than at the door.

Which sourcing moves should buyers take before peak cut-offs?

Sharad's operator checklist:

• Re-score every supplier against full delivered economics — duties, taxes, transit time, disruption risk — not the ex-works price alone.
• Build at least three cost scenarios per market — up, flat, down — and tie pricing flexibility to each.
• Replace one global price list with market-specific lists. Some markets take a price rise; others need a different SKU mix or shipping option.
• Treat landed-cost intelligence as a sourcing input, not as an after-the-fact accounting entry.

"Commerce intelligence brings those signals together so teams can respond as conditions change," Sharad said. "AI is useful when it turns complex data into actionable decisions, with people setting the strategy and margin guardrails."

What is the regulatory hook?

Sharad does not cite a specific tariff line, ruling or section number. The compliance pressure point she names is HS classification on the commercial invoice, which sets the duty rate applied at the border, and customs requirements, which vary by destination market.

What does the news force?

For a sourcing team with a peak-season PO on the table this week, the decision Sharad forces is a country-of-origin re-check against the current tariff schedule, a re-quote of landed cost before the order is released, and a market-by-market price plan locked in alongside it.