By: Rachel Phillips
In recent weeks, we’ve seen a spike in questions from our clients about the evolving Trump-era tariff policy changes—and for good reason. These changes can significantly impact cost structures, pricing models, sourcing decisions, and overall profitability.
Tariff policies may shift, but your business doesn’t have to be at their mercy. The businesses that stay informed, agile, and data-driven are the ones that will weather these changes—and emerge stronger.
This blog post is designed to help you avoid the disruption. I’ve distilled the most common client questions—and our strategic recommendations—to help you stay informed. If you’re running an eCommerce business, here’s what you need to think about right now.
Q: How will new tariffs impact the cost of my goods?
The concern: You’re worried about increased costs on imported goods and whether you can absorb those or should pass them to your customers.
The reality: For most, it will be a mix of both. We’re advising clients to proactively build cash reserves now by running profitable sales and focusing on customer lifetime value (LTV). Increasing LTV gives you more flexibility to absorb new costs without eroding your margins.
💡 Action Step: Review your 13-week cash flow forecast. Don’t have one? You can download our free resource here. Reallocate resources to drive sales volume and increase average order value (AOV). This cushions the financial hit.
Q: Should I change suppliers or sourcing strategies to avoid tariffs?
The concern: You’re considering switching suppliers to countries with lower or no tariffs.
The real question: Will it actually improve your bottom line?
Sometimes lower tariffs come with trade-offs—longer lead times, higher manufacturing costs, or quicker payment terms. You need to assess total landed cost, not just the tariff rate.
💡 Action Step: Conduct a full cost-benefit analysis before making any major supplier shifts.
Q: How will tariffs affect my pricing and competitiveness?
The concern: Raising prices to offset tariffs could make you less competitive—especially if your competitors aren’t facing the same challenges.
The strategy: Again, focus on increasing AOV and LTV. Consumers may expect some price increases, but that doesn’t mean you need to sacrifice customer loyalty. Deliver more value, create offers that drive repeat purchases, and strengthen your relationships with existing customers.
💡 Action Step: Audit your pricing strategy and identify opportunities to create tiered offers or bundles that increase perceived value.
Q: Are there any exemptions or tariff relief options available?
The concern: You want to know if your products qualify for exemptions or deductions.
The insight: There may be relief programs, especially for certain critical or high-tech goods—but navigating that space takes expertise. This isn’t a DIY project.
💡 Action Step: Bring in a customs or trade specialist to review your product classifications and identify relief opportunities. They often pay for themselves.
Q: What other strategies can I use to minimize the impact of tariffs?
The concern: You’re hearing about tactics like pre-buying inventory or using alternate shipping routes.
The better approach: Take a holistic view. An operational budget allows you to find efficiencies across sales, marketing, fulfillment, and procurement. Small optimizations in several areas can add up to big savings.
💡 Action Step: Implement a Rolling Operational Budget and identify 3-5 areas to improve the tariff impact.
Q: How do I stay compliant with changing regulations?
The concern: The tariff landscape is constantly shifting—and staying compliant feels like a full-time job.The solution: Don’t try to become a tariff expert. It can be overwhelming and stressful. Hire one. Having a compliance partner that monitors changes, updates your classification codes, and ensures documentation accuracy protects your business and frees you up to focus on growth.
💡 Action Step: Outsource your compliance and focus your energy where it counts—sales, marketing, and customer retention
If you have any questions or would like us to review your specific exposure and strategy, feel free to Contact Us—our team is here to help!
