If you run a product-based business, you’ve likely felt it: the pinch of rising costs, longer lead times, and cash flow strain. Now, there’s more pressure on the horizon — tied to a major policy shift that’s still reshaping global trade.
Last week, the Trump Administration introduced sweeping tariffs, including:
- A 10% baseline tariff on nearly all imported products from every country, with very few exceptions
- Additional “custom” tariffs targeting goods from countries with larger trade deficits with the U.S.
These tariffs haven't gone away — and they’re not expected to anytime soon. With global tensions persisting and trade enforcement tightening, elevated import costs are the new normal.
Let’s break down what this means for your business, who’s feeling the most pain, and what you can do about it — starting today.
Who's Feeling It the Most?
Tariffs impact many industries, but they hit certain SMBs especially hard. If you're in one of these groups, it's time to take a closer look at your exposure:
- Ecommerce brands sourcing from Asia, Europe, Africa, or South America
- Retailers with international supplier networks
- Manufacturers importing machinery, parts, or packaging
- Wholesalers relying on overseas product lines
If you’re seeing margin erosion, cash flow hiccups, or delayed inventory — tariffs are almost certainly a factor.
5 Ways to Reduce Your Tariff Exposure
While you can’t make tariffs disappear, you can take steps to reduce their impact and regain control over your operations and cash flow.
- Analyze Your Exposure
Start by identifying exactly where you're vulnerable.
- Map your supply chain: Which products and suppliers are most affected?
- Factor in hidden costs: Tariffs can hit not just finished goods, but also components, packaging, and freight.
- Stay informed: Policy shifts happen quickly. Make tariff tracking part of your regular financial review.
- Re-Negotiate with Overseas Suppliers
Your suppliers are aware of the tariff landscape — and they may be open to helping you manage the impact.
- Use your data: Share the real costs you’re absorbing to make your case.
- Ask for flexibility: Push for better payment terms, price adjustments, or different shipping strategies.
- Explore alternative countries: Shifting sourcing to countries with more favorable trade terms (like Mexico or Vietnam) may offer relief.
- Restructure Your Inventory Strategy
If lead times are stretching and costs are climbing, consider a new inventory approach:
- Switch from just-in-time to just-in-case for key SKUs
- Stock strategically: Focus on high-demand items that are costly or slow to replenish
- Tie inventory to cash flow forecasts so you don’t overextend your working capital
- Rework Your Pricing Model
Many SMBs hesitate to raise prices, but waiting too long can put your margins at risk.
- Experiment with smart price adjustments: Consider tiered pricing, bundles, or value-based increases
- Track profitability by SKU: Know where you're gaining or losing money post-tariff
- Keep customers in mind: Balance affordability with sustainability
- Communicate with Your Customers
In times of economic uncertainty, transparency builds trust.
- Be honest about the reasons for price changes — customers are more understanding than you might think
- Frame your updates around continuity and quality: You're working hard to maintain both
- Strong relationships can help you weather short-term volatility
Final Word: Navigate, Don’t Panic
Trade volatility is the new normal — and tariffs are a long-term fixture of that environment. But that doesn’t mean you’re powerless.
By analyzing your cost structures, adjusting sourcing and inventory, and keeping your pricing and customers aligned, you can stay agile and protect your bottom line.
We’re here to help with:
- Landed cost analysis
- Margin and pricing strategy
- Supplier planning
- Cash flow forecasting
- Tax planning (including tariff-related incentives and credits)
Need Help Thinking Through Your Tariff Strategy?
Let’s talk. We’ll walk through your numbers, your suppliers, and your options — so you can make confident, strategic decisions in a world full of uncertainty.