With global headlines dominated by tariff tensions and trade policy shifts, small and mid-size business owners are understandably on edge. Whether you import materials, export finished goods, or operate in a supply chain that touches international markets, tariffs can ripple through your business in unexpected and costly ways. 

As trade policy evolves, here are key considerations and proactive strategies to help you recalibrate and stay resilient in the face of tariff uncertainty. 

1. Assess Your Exposure

The first step is to pinpoint potential vulnerabilities on the supply and demand sides of the equation. 

Supply chain: Are you sourcing raw materials or components from countries targeted by a new or changed tariff? If so, are you already seeing price increases from suppliers, or are the increases still just potential? 

Customer base: Do you sell products or services to international buyers? If so, how might that impact future business? 

Once you’ve determined how (and to what extent) tariffs will directly impact your business, focus on your cost structure. How much will you incur in additional costs versus what you will pass on to customers?  To answer this question, take a structured approach that looks something like this: 

  • Break down the cost of goods sold to isolate tariff-related increases. 
  • Run a breakeven analysis to see how different price points impact profitability. 
  • Conduct margin analysis on your product or service lines, determining which are more price-sensitive and vulnerable to losing market share if you increase the cost. 
  • Segment your customer base to understand if you are selling to large institutional buyers who expect long-term pricing stability, or to individual consumers who may tolerate incremental increases. 
  • Consider tailored price adjustments by customer type.  

2. Diversify Suppliers and Markets 

Diversification can make your business more resilient, whether you’re purchasing or selling. It’s the best defense against disruption and instability. 

Explore domestic options for procurement: While not always cheaper, U.S.-based suppliers may offer price stability and fewer regulatory headaches. 

Expand your market: Consider entering new markets that are less affected by tariff disputes, such Australia, New Zealand, Singapore, Malaysia, and select regions of Europe. You can procure relationships with new markets by attending international trade shows or partnering with experienced exporters and distributors who already have a footprint in your target region. They can help you navigate cultural nuances, compliance requirements, and customer acquisition challenges. The U.S. Commercial Service offers market research, matchmaking, and support for U.S. exporters. They even run programs like Gold Key Services to help you find buyers and distributors abroad.   

Consider nearshoring: Because the tariffs have thus far been product-specific, countries like Mexico or Canada might be viable alternatives for sourcing raw materials or manufacturing, particularly if your current suppliers are in tariff-affected regions. These countries benefit from geographic proximity, established trade frameworks like USMCA, and reduced shipping time and cost compared to overseas alternatives. 

3. Review Contracts and Pricing Flexibility   

Renegotiate supplier contracts: Add clauses or cap cost increases tied to tariffs.   

Implement dynamic pricing: Especially for online or high-volume businesses, pricing models that adjust based on input costs can protect margins.   

Even if you can’t control prices, you can control how you communicate them. When prices go up, transparency and a clear message to customers explaining how external factors influence your pricing can help preserve trust. 

4. Monitor Policy and Plan for Multiple Scenarios 

With tariff policies announced, delayed, and revised—sometimes in a single day—it’s challenging to know when and how to react. To protect your business and sanity, we suggest preparing as much as possible but waiting for reliable information before taking action. 

Follow trusted sources: Don’t make critical business decisions based on the latest cable news chyron. Instead, look to the U.S. Chamber of Commerce, the Small Business Association, or trade associations in your industry for more reliable policy updates. 

Build flexibility into forecasts: Create a few “what if” scenarios. Then, adjust cash flow planning, inventory levels, and capital investments accordingly. If circumstances change and you must pivot, you’ll be ready to respond quickly and effectively.   

5. Lean Into Advisory Relationships 

Uncertainty is when strategic guidance matters most. Make sure you have the right advisors on your team, not just to react, but to help you plan ahead and capitalize on change.   

Let Our Advisors Help Your Small Business 

Cerity Partners Business Owner Advisors can assist with financial modeling, tax impact analysis, inventory and cash flow planning, and scenario forecasting. Our fractional CFOs can offer high-level insights without the full-time cost, helping you interpret the numbers and turn them into strategy. If you’re building toward a business sale or transition, a tariff-driven market shift may impact valuation. We can help you navigate this ever-changing environment to determine whether it’s time to sell or hold. 

These advisory relationships can also be helpful:  

Supply chain consultants: A consultant can analyze your exposure to tariffs and help you create alternate sourcing and logistics plans. 

International trade consultants: To ensure compliance with import/export laws, classify goods correctly (for tariff optimization), and help reduce customs penalties.   

Commercial bankers and lenders: A good banking relationship will facilitate access to working capital, trade financing, and credit flexibility to help weather tariff-induced cost fluctuations.   

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