Some tariffs are here, and others are slated for the near term. The situation is fluid as US policy is clarified and the US’ trading partners negotiate, but the exact concessions our government seeks are not clear.

In our last blog post, we outlined some ways to position your business amid a tariff environment. Do not forget to attend our March 20 Summit for a detailed look at federal policies and business impacts. In the meantime, here are a few more practical steps to consider as tariffs are implemented:

Do Not Take the 'Due to Tariffs' Explanation at Face Value

Some of our clients are noting that their suppliers began raising prices “to cover tariffs” before tariffs were even in effect. If you know exactly which of your inputs are subject to tariffs, and how much the tariffs are, you will be in a stronger position to negotiate pricing.

Getting a handle on this information – which tariffs are impacting your inputs, and by precisely how much – can be difficult. Countries of origin need to be correctly identified – not an easy task when it comes to components and intermediate goods that will eventually be incorporated into finished goods. You will also need to identify the tariff classification code to understand the duties that must be paid. A customs and duty specialist can help sort it all out. Our colleagues at Crowe LLP stand ready to help. Contact Dan Swartz for a complimentary Trade Data Analysis.

Explore Potential Mitigation Actions

There will be fewer feasible mitigations this go-around than in 2018 because the government has purposely removed loopholes, but there are still actions to take.

• Manage your inventory carefully. Some businesses have reported success in front-loading their inventory before tariffs take effect. It is pretty late in the game for this strategy, but a supplier may give you a discount if you buy in bulk. This is a risky move unless you have a very firm handle on where your market is going. ITR Economics can help there.
• Evaluate your contracts. Does your contract stipulate which party is responsible for footing the tariff bill? Is there room for pushback? Make sure this variable is addressed to your satisfaction in any future contracts you enter into.

Do Not Get Distracted – Continue To Optimize Your Business for a Rising Macroeconomy

It is important to remember that we are anticipating mild growth in 2025 and 2026. The service sector has accounted for a large portion of GDP growth in recent years, and that trend is likely to continue. If you sell goods, identify ways to attach your goods to the service sector.