Tariffs Got You Stressed? This Will Help.
- Terrand Smith
- Apr 10
- 9 min read
We have heard a lot of talk and movement over the past few months regarding tariffs and trade wars. While headlines often spotlight the political and economic battles between nations, the real ripple effects are felt on Main Street, by small businesses trying to stay afloat, grow, or compete.
Before we dive into how these policies can impact your business, let’s take a moment and breathe. Understanding, keeping up, and determining how to adjust our business to these quickly changing policies has felt like a roller coaster ride. So let us help bring a little stability to the conversation with insights, considerations, and resources.
37 Oaks is an education company that helps you build a profitable, sustainable, and scalable business. In addition to our courses, coaching, content, and services, it also entails us being real about the ups and downs of entrepreneurship. Trade wars, economic shifts, political changes, industry shakeups, they're all part of the journey. So yes, it’s valid to feel nervous, overwhelmed, and frustrated when macro changes can have major impacts on our business. But what I’ve seen time and time again is that the entrepreneurs who survive and thrive through these times are the ones who learn to manage those feelings, not become saturated in them or ignore them.
If you were a business owner in 2020, chances are you flexed this muscle during the onset of the COVID-19 pandemic. Your business lived through one of the most disruptive global events in modern history. You made hard calls. You pivoted, restructured, let go, and leaned in. It wasn’t easy. It wasn’t ideal. But you did it. And you can do it again.
The impacts of this current tariff environment may require us to reevaluate our business in similar ways. Fun? No. Inconvenient? Probably. Necessary? Yes. But this can also be an opportunity to pause, reflect, and move forward with intention. Tariffs and trade wars are not the end—they’re just another chapter in your entrepreneurial story.
A few years ago, I authored Prepare to Shift: The Workbook. It outlines 14 principles and exercises to help a small business owner shift their hobby or idea into a growing business. Before diving into tactical resources, I deliberately start the first chapter with a MindSHIFT.
So here are a few mindSHIFTS we must make before tackling tariffs and trade wars head-on:
“This is out of my control” → “What can I control right now?”
“I just need to survive this” → “How do I stay agile and position for what’s next?”
“I can’t raise prices” → “How do I communicate value and explore pricing strategy?”
“I don’t have the energy to navigate this phase. I’m tired.” → “This feels heavy right now, but I will take it one step at a time.”
Next, let's understand how a tariff works.
How Do Tariffs Actually Work?
Let’s say you run a candle business. You handcraft candles in the U.S., but you import glass jars from overseas.
Before tariffs, each jar cost $1.00.
After a 25% tariff is imposed, that same jar now costs $1.25.
You use 1,000 jars per month, so you’re now paying $250 more each month, or $3,000 more each year.
That one policy change now affects your pricing, margins, customer behavior, and brand strategy. Even if your business is U.S.-based, many of your suppliers likely rely on global supply chains. A material sourced from Vietnam might be assembled in China, packaged in Mexico, and shipped through the U.S. Tariffs introduced in any part of that process can create ripple effects throughout your cost structure.
How Tariffs Impact Small Businesses
1. Increases Costs for Goods & Materials
Tariffs act like a tax on imported goods, whether it’s raw materials, packaging, equipment, or finished products. In our candle company example, a 25% increase on one small item adds up quickly. Multiply that across multiple product components or products, and the hit to your profits becomes serious. This forces small business owners into hard decisions:
Raise prices
Absorb the costs
Explore alternative suppliers
2. Increases Customer Price Sensitivity
With higher prices comes another challenge: price-sensitive customers. U.S. consumers in this current market are already cautious, managing debt and watching every dollar. Even a modest increase, such as raising your candle price from $15 to $16, can lead customers to seek lower-cost options or not buy at all.
Raising prices may reduce customer retention
Absorbing the cost protects loyalty but shrinks margins
3. Leads To Supply Chain Disruptions
Tariffs can shake up your supply chain quickly and unpredictably, and that can be especially tough on small businesses. If you rely on international vendors, you might experience sudden delays at customs or even price increases from suppliers who are trying to manage rising costs themselves. For example, a shipment that used to take three weeks might now take 2 months. That kind of delay can throw off inventory planning, stall a product launch, or frustrate your customers, especially if you run a lean operation without a lot of backup stock.
4. Reduces Global Market Access
Tariffs often trigger retaliation from other countries. If the U.S. imposes a 20% tariff, a country might respond back with a similar tariff on U.S. exports. For example, a skincare brand exporting to a country may face a 20% customs tax, pricing their product out of the market.
This can stall global growth, disrupt international partnerships, and force a reevaluation of export strategies.
5. Increases Uncertainty & Volatility
Trade policy changes can happen quickly, and for small businesses, that uncertainty can make planning feel like guesswork. Costs may rise after contracts are signed, inventory plans become less reliable, and wholesale buyers may hesitate to place orders.
When the rules shift suddenly, it can throw off everything. That’s why it’s important to build flexibility into your business—whether it’s keeping planning cycles shorter, maintaining open communication with vendors, or having a few backup options ready to go. These small steps can help you stay steady when the outside environment is not.
6 Ways Small Businesses Manage Through It
Now that we've identified ways tariffs can impact your operations, from rising costs to shifting supply chains, it’s time to shift from awareness to action. This is where strategy steps in. While you can’t control the global economy, you can make thoughtful, strategic moves to stay resilient.
1. Diversify Your Suppliers
The more concentrated your sourcing is, the more vulnerable your business becomes to disruptions, especially in times of geopolitical tension or shifting trade policies. Avoid being too reliant on a single supplier, region, or country. We know that finding new suppliers can feel like a daunting and time-consuming task. It requires research, outreach, vetting, and sometimes trial and error. But this investment of time and energy can significantly reduce your long-term risk and help you build a more sustainable business.
To get started, consider using a platform like ThomasNet to identify alternative suppliers. Tap into your local Small Business Development Center (SBDC), trade shows, or industry networks to explore new supplier relationships. You may also consider sourcing from countries unaffected by current tariffs or exploring local and regional vendors, even if it means smaller or more frequent orders.
2. Revisit Pricing Strategies
When your costs increase, your pricing strategy may need to evolve as well. But it’s important to approach this with care, not panic. Sudden or poorly communicated price increases can confuse or alienate customers. Instead, explore thoughtful pricing strategies that make sense for your business, while continuing to deliver value and clarity to your audience. For example:
Bundle products to enhance perceived value
Introduce value lines or options for price-sensitive customers
Communicate price changes to customers with honesty and transparency
Lastly, you may consider accepting lower margins on select products to maintain customer trust. While this may not be your preferred option, it can be a strategic short-term move that helps you stay competitive, retain loyal customers, and avoid abrupt pricing changes that may alienate your audience. It can also buy you time to explore alternative suppliers, negotiate better terms, or roll out new pricing gradually, all while maintaining brand stability.
3. Refine or Reevaluate Your Product Assortment
Not every product needs to stay in your lineup, and not every product needs to stay in its current form. As market conditions shift, especially with rising tariffs, it’s important to reassess your product mix. Some items may have thin margins or rely heavily on costly imported materials. Others might benefit from a refresh in how they’re packaged, bundled, or delivered to stay financially sustainable.
These adjustments aren’t about cutting corners, they’re about making intentional choices that protect your brand and meet your customers’ needs. Focus on high-margin, low-risk items, pause or discontinue products that are costly or underperforming, and simplify your assortment to ease operations.
Another way to manage rising costs is through value engineering, reworking your product to reduce
expenses without lowering quality. For example, if your candle brand uses a custom glass jar that’s now too expensive, switching to a more affordable, standardized jar that still fits your look can help lower costs while preserving your customer experience. Small, smart shifts like this can go a long way in helping your business stay profitable and resilient.
4. Focus on Domestic Growth & Sales
For those looking to achieve growth in global markets right now, you don’t have to go global to grow. Expanding your business doesn’t always mean selling overseas or breaking into international markets, especially when global conditions are uncertain. Sometimes, the biggest growth opportunities are right here at home. Domestic expansion can offer new revenue streams, more manageable logistics, and fewer risks when compared to navigating tariffs, currency exchange, and complex international shipping regulations. Use this time to consider expanding into new domestic territories until global conditions stabilize. For you, the U.S. market may have plenty of untapped opportunity.
Consider revisiting ideal customer profiles- what segments or regions have you overlooked? For example, let’s say Maya owns a natural body care brand and has historically marketed to young, urban women in major metro areas. After noticing increased competition and softening sales in that space, she analyzes her data and sees growing interest from wellness-focused consumers in small cities and suburban regions.
Maya decides to pilot a regional campaign targeting midwestern health-conscious moms ages 35–50 with a new value pack bundle and messaging tailored to family wellness. This simple shift allows her to grow domestically, build brand loyalty in a less saturated market, and diversify her customer base during uncertain global conditions.
5. Tap Into Group Purchasing Opportunities
For many small businesses, meeting supplier minimums or affording large upfront orders is a challenge, especially with rising costs due to tariffs. But by teaming up with other businesses that need similar materials, you can combine your orders and unlock pricing typically reserved for high-volume buyers.
This kind of shared purchasing helps lower your per-unit costs, eases cash flow, and makes it easier to access quality suppliers without overextending yourself. It’s a practical way to stay competitive when resources are tight, and one more reason to stay connected to business communities and group purchasing networks like 37 Oaks’ Sourcing Collective to gain better pricing and terms.
Gain leverage by pooling your buying power with others. For example, imagine three small BBQ sauce companies that each need packaging for their products but can't afford the high minimum order quantities required by suppliers, or can receive discounts the more they order. By partnering with fellow business owners or joining a group purchasing program, they combine their orders and collectively meet the supplier's minimum, unlocking wholesale pricing that would be out of reach individually. This allows each business to lower per-unit costs without carrying excess inventory.
6. Get Involved in Policy
Staying informed and advocating for your business is more important than ever, especially when policy changes like tariffs can directly affect your supply chain, pricing, and customer relationships. Keep an eye on updates from trusted sources like the U.S. Trade Representative or the SBA so you can anticipate changes early and adjust accordingly. Get involved with your local chamber of commerce, industry groups, or small business coalitions that are working to ensure policies are fair and supportive of small business growth.
Advocacy isn’t just for big corporations—you have a voice, and it matters. Whether it’s writing to your local representative, attending a town hall, or simply sharing insights and supplier tips with fellow entrepreneurs, you have the power to help shape the environment in which your business operates. Staying connected keeps you empowered—and it helps all of us move forward, together.
Breathe. Reflect. Move Forward.
Tariffs and rising costs can feel overwhelming, especially when the path forward isn’t clear. But moments like this are not new to entrepreneurs, they’re part of the journey. You've faced tough decisions, pivoted through uncertainty, and led your business through challenges before. This is another chapter where you get to do the same, with intention. It’s okay to feel tired or unsure, but don’t let that stop you from moving.
Breathe. Reflect. Move Forward.
Now is the time to focus on what you can control—your pricing, your product mix, your sourcing strategy, and how you communicate with your customers. Small shifts today can lead to long-term strength. You don’t have to fix everything overnight. But with clarity, flexibility, and the willingness to adapt, you can respond to this moment with confidence. Keep going—your next move matters.
Founder/CEO
37 Oaks
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