Tariffs and Small Businesses: What You Need to Know
May 1, 2025
Most small business owners don’t think international trade policies apply to them. But tariffs can sneak in like an uninvited guest. Maybe you buy ingredients from other countries. Or sell products made with parts from overseas. These hidden fees can slowly eat into your profits. And when the rules keep changing, it can feel overwhelming.
If you’re unsure how global trade tensions might affect your business, you’re not alone. As someone who’s worked at numerous Fortune 500 companies, I’ve seen how these types of changes disrupt supply chains, pricing, and cash flow.
Per Best Buy CEO Corie Barry on a recent earnings call: “We’ve never seen this kind of breadth of tariffs — and this, of course, impacts the whole industry, so it’s not just a Best Buy question.”
The good news is, you can prepare. With a solid plan and smart money choices, your business can get through tough times and come out even stronger.
Here’s how.
Step 1: Understand Where You’re Exposed
Start by finding the parts of your business that tariffs affect most. Look at:
• Products or materials you buy
• Where those items come from
• Who you’re buying from
• Shipping and delivery costs
Pulling this data, we can spot where costs are going up. That’s the first step to taking back control.
Step 2: Revisit Your Pricing Strategy
Tariffs usually lead to higher costs. How you respond can make a big difference. Do you:
• Cover the cost yourself and make less profit?
• Raise prices and risk losing customers?
Neither choice is perfect. That’s why we help you test different pricing plans to see what works best. You might raise prices on a few items, offer bundles to boost sales, or add new products that aren’t affected by tariffs. The goal is to protect your profits and stay competitive.
Step 3: Review Your Contracts and Vendors
Now is a good time to review the fine print in your contracts.
• Can you renegotiate with your suppliers?
• Is it possible to buy the same materials from countries without or lower tariffs?
• Are there nearby vendors worth using, even if they cost more?
Look closely at your contracts and vendor relationships. You may find ways to lower risk and better control your costs. Flexible deals and a mix of suppliers aren’t just helpful, they’re necessary. But even with strong vendor plans, you need to stay sharp with your numbers. That’s why it’s important to forecast often and plan ahead.
Step 4: Forecast More Frequently
Many small businesses make the mistake of using old forecasting methods. But tariffs can change fast, and old budgets might not work anymore.
To stay prepared, try using rolling forecasts. Update them every month—or even every week. These plans let you test “what-if” situations so you can spot problems like tariff hikes or shipping delays before they hurt your business.
Step 5: Get Smart About Inventory
When things feel uncertain, it’s easy to over-order. But too much inventory can waste money and take up space.
A better way is to be more strategic:
• Stock up on products that sell quickly and make you more money.
• Use past sales data to set the right stock levels.
• Watch storage and handling costs closely. These often go up when tariffs do.
Inventory can either hurt your profits or help your business grow. With the right plan, we make sure it helps.
Final Thoughts: Tariffs Aren’t the End. They’re an Opportunity
Yes, tariffs can cause problems. But if you’re prepared, they can also create new opportunities to grow. This is a good time to look at how your business runs, make your supply chain stronger, and adjust your pricing to stay competitive.
At Zoi Financials, we help small businesses turn financial stress into smart moves. With big-company experience and a small-business mindset, we give you the guidance and support to adjust, improve, and succeed.
Want to Talk?
Worried about tariffs? Or just want someone to review your financial plan? We’re here to help. Let’s look at the numbers together and find ways to make things easier for you.
No confusing terms. No hard sales. Just honest financial advice that fits your business.