The 2025 US-China trade war has significantly impacted businesses that rely heavily on Chinese imports, including retailers in the two-way radio industry. Recent developments in tariff escalations have created a challenging and uncertain environment, with significant implications for companies like ours.

A Brief History of the Tariff Situation
The current climate isn’t without precedent. Back in 2018, the US and China became embroiled in a trade war centered on tariffs, intellectual property, and tech disputes. Two-way radios were placed under a 25% tariff during this period, significantly affecting pricing. A Phase One agreement signed in January 2020 promised some relief, with China agreeing to increase US imports by $200 billion. However, the onset of COVID-19 disrupted trade and supply chains, and China ultimately fulfilled only 58% of that commitment. With no enforcement under the Biden administration, the agreement eventually dissolved.

In early 2025, tariffs surged again with renewed trade tensions. The Trump administration reinstated and significantly increased tariffs, partly in response to fentanyl-related issues. Initially, an additional 10% tariff was placed on Chinese goods, quickly escalating through a series of retaliatory increases between the two nations, peaking at an astounding 145% tariff on two-way radios from China.

This drastic increase essentially halted the import of two-way radios and related components from China, creating immediate disruption. Suppliers and retailers in the US faced immense uncertainty. Factories in China came to a sudden standstill. Since the US and China rely heavily on a stable trading relationship, the financial implications for both countries were quite serious.

The volatility of this trade environment had a direct and immediate impact on Buy Two Way Radios. Over 80% of our product inventory comes from Chinese manufacturers or suppliers who rely on Chinese components. The sudden and dramatic increase in tariffs made it difficult — and risky — to place new orders, since a change in policy could render recent purchases significantly overpriced.

To weather the storm, we reduced our advertising efforts and special promotions and temporarily stopped ordering Chinese products directly. Simultaneously, our suppliers began issuing warnings about upcoming price increases and temporary surcharges. Some of these costs had to be passed on to consumers, resulting in price adjustments on select products.

A Temporary Reprieve
On May 12, 2025, the US and China announced a 90-day pause on the newest tariffs, rolling back the most recent hikes by 115%. This brings the current US tariff rate on Chinese two-way radios to 55%. This is still substantial, but far less than the peak reached just weeks prior. The pause is meant to provide room for renewed negotiations and possibly a more stable agreement.

How Buy Two Way Radios Is Responding
We continue to operate carefully in this volatile environment. Although the combined tariffs still stand at a significant 55%, the 90 day pause has allowed us to resume importing activities cautiously, and some products have seen price adjustments to accommodate the higher import costs. We are closely monitoring the evolving scenario and preparing for potential future fluctuations. While the tariff pause offers temporary relief, uncertainty remains high, so we must be ready to adapt quickly as negotiations continue between the two economic powers.

Though products from Japan, such as those from Icom and Kenwood, were affected less severely, the overall uncertainty remains. As for the products imported directly from China, we have resumed ordering under the current 55% tariff rate, but long-term plans remain contingent on future policy developments.

Looking Ahead
While some may hope for a full manufacturing shift to the US, the reality is more complex. Building domestic production capacity for two-way radios is a slow, costly process, and competing with low-cost imports remains a major hurdle. For now, Buy Two Way Radios — like many retailers — continues to adapt in a constantly shifting trade landscape, while preparing for what may be next in the future.

Additional Resources
TWRS-121 - Tariffs on Chinese Two Way Radios?
TWRS-202 - Tariffs on Two Way Radios in 2025?