In early April 2025, the White House issued Executive Orders establishing tariffs on imports from many countries that UO purchases products from. This has impacted both costs and delivery of products to UO.  PCS prepared this FAQ to respond to the many questions we are receiving related to tariffs and their impacts of UO’s supply chain.

Select the question in the table of contents to be taken directly to the question and answer.

What is PCS doing to reduce or avoid tariff costs?

For products that were ordered before the tariffs were implemented, PCS is using whatever leverage we can to attempt to share the tariff costs with suppliers. There is little we can do if the supplier will not contribute to those costs. For purchases moving forward, PCS has developed terms that call for the suppliers to cover tariff costs. We expect most suppliers to reject these terms, but we will use that as a starting point to negotiate with suppliers before products are ordered. Our objective is to understand, to the extent possible, the costs of a transaction, so that we have the option of paying that cost, negotiating the cost down, or finding an alternative source before UO is committed to a purchase.

The product I am buying is made in the US or in multiple countries and the supplier is trying to impose a price increase due to the increased cost of components that are made overseas, what are my options?

Suppliers should, at maximum, only be passing on the increased costs based on the actual cost of goods sold only for components made overseas. UO should not pay any tariff costs based on retail price (or even UO negotiated price) of US made products, the supplier’s profit, or components that are made in the US. It is incumbent on the supplier to demonstrate the validity of the price increase by showing the actual costs (not retail price). Any instances of suspected profiteering or “greedflation” (suppliers taking advantage or price uncertainty to increase profits) should be reported to PCS immediately.

Can grant funds be used to pay tariffs?

Departments should confirm with their grant coordinator at Sponsored Project Services that their grant funds can be used to pay tariff fees. If you are uncertain who to contact at SPS you can email their general inbox at sponsoredprojects@uoregon.edu.

At what point will a tariff be applied to my purchase?

Tariff fees are applied at the rate in place on the day the equipment enters US customs. Because the rate is not applied until the equipment reaches the US it is difficult to predict the effect, and the exact additional cost tariff fees will have on your purchase.

How do I know how much I will have to pay for tariffs?

With the continually changing landscape of tariffs, it is impossible to know what tariff fees will be at the time of delivery. This tariff tracker provided by Reed Smith seems to up to date as of April 14, 2025, when the last tariff changes were announced.

Which shipping terms require the supplier to pay all tariffs, custom fees, and shipping costs?

In international shipping, DDP stands for Delivered Duty Paid. It's an Incoterms rule where the seller takes full responsibility and all costs (including duties and taxes) until the products are delivered to the buyer's specified destination. PCS is including this in our POs, but we are expecting pushback from suppliers which may require additional negotiation before the order is issued.

I have an item that is being held by US Customs pending UO’s payment of tariffs, what do I do?

UO has a customs broker, BGI Worldwide Logistics. Please contact John Fulcher at (885)-687-0658 or email: johnfulcher@bgiworldwide.com and copy the PCS contact that worked on your purchase. BGI will help determine the tariff owed, and ensure the product is moving through customs.

What are creative strategies I might ask of suppliers to mitigate/offset tariff costs?

Some strategies PCS has used include adding terms that allow for no cost termination in the event tariffs are imposed on a purchase at all or over a certain amount, adding additional services or warranties in exchange for the supplier covering tariffs, and asking the supplier to share the costs of tariffs so that UO is still able to complete the purchase within its budget.

What can my department do to avoid uncertain tariff fees?

In some instances, tariffs will be unavoidable. When possible, it may be appropriate to look for a domestic supplier or delay purchases if it seems tariffs may be reduced or eliminated for the source country.

Do I have to cancel my purchase because tariffs are increasing?

PCS will not require you to cancel your purchase if funds are available to cover tariff costs. If you have the budget to cover tariff and customs fees, you can decide if you would like to pursue the purchase. PCS does not have a budget to cover tariff costs, but we are happy to brainstorm with you to identify possible funding options.

Can UO use the Florence Agreement to avoid tariffs for research equipment where there is no US made functional equivalent?

PCS will assess, in partnership with BGI, if this is an option on a case-by-case basis. From what we have learned from BGI and other universities, it seems that the Florence Agreement does not apply to the recently implemented reciprocal tariffs.

What do I do if a supplier on Duck Depot is telling me that they are unable to provide a product or are raising prices due to tariffs?

Please contact PCS. While prices may go up due to tariffs, this should be coordinated with our office, not pushed directly to campus without PCS’s approval.

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