Tips for Planning Around Tariff Uncertainty

Talking to industry experts and operators, reviewing news analysis about the tariff war, we heard a consistent need - Ecom leaders at omnichannel brands need more time to figure out an action plan. Here are immediately actionable steps you can take within this week to buy you some time. Each item in this list can executed in under a day.   1. “Tariff‑Light” Search Badges & Filters Add a dynamic flag (“Made in US / Tariff‑Free”) to SKUs manufactured in North‑America‑friendly zones (USMCA, etc.). Surface that badge as a filter and a search boost so shoppers naturally gravitate to SKUs with lower landed costs. 2. Margin‑Aware Boosting Drop a search‑ranking rule set that weights gross‑margin contribution (not just relevance) so higher‑margin domestic SKUs climb the results list automatically. That cushions margin erosion without a site‑wide price hike.   3. Pre‑Tariff Demand Pulse Run a 48‑hour demand‑forecast sweep on categories most exposed to tariff hikes. Push an “Order before prices change” banner only where we see elasticity, minimizing blanket discounts.   4. Smart Bundles to Dilute Duty Impact Assemble bundles mixing a tariff‑hit item with high‑margin accessories or a US‑made SKU. Bundles hide the unit cost bump while keeping AOV healthy.   5. Search‑Driven Substitution Prompts When a shopper types a keyword associated with low-margin products, surface a “Looking for lower‑cost alternatives?” module that points to SKUs that have a lower landed cost. Need step-by-step instructions to execute these in Business Manager? Checkout the post 👇 Questions? DM me. ♻️ Repost to help out your network. #SFCC #TariffWars #Ecommerce

𝗖𝗠𝗢’𝘀 𝗣𝗲𝗿𝘀𝗽𝗲𝗰𝘁𝗶𝘃𝗲: 𝗖𝗮𝗻 𝗖𝗣𝗚 𝗯𝗿𝗮𝗻𝗱𝘀 𝗽𝗿𝗼𝘁𝗲𝗰𝘁 𝗺𝗮𝗿𝗴𝗶𝗻𝘀 𝗶𝗻 𝘁𝗵𝗲 𝗻𝗲𝘄 𝘁𝗿𝗮𝗱𝗲 𝗿𝗲𝗮𝗹𝗶𝘁𝘆? (Welcome to 2nd Trump Tariffs Era) Tariffs are back, and they are hitting the bottom line harder than ever. With new trade barriers on China, Canada, and Mexico, CPG brands face a triple threat: rising costs, shrinking consumer demand, and disrupted supply chains. But here’s my question: Are we playing defense, or are we strategically pivoting? From what I can see, data tells us a clear story. Historically, high tariffs = lower trade competitiveness. Let's take a look at the U.S. Average Tariff Rates (1821-2016) and trade balance trends: ✅ When tariffs were high (pre-1940s), trade was limited, and the U.S. maintained a surplus. ✅ Post-1945, lower tariffs (via GATT & WTO) fueled economic expansion and trade growth. ❌ After the 1971 Bretton Woods collapse, trade deficits deepened as low tariffs persisted. 🚨 Today, reintroducing high tariffs could lead to cost-driven inflation, supply shocks, and loss of global competitiveness. ++ 𝗪𝗵𝗮𝘁 𝗧𝗵𝗶𝘀 𝗠𝗲𝗮𝗻𝘀 𝗳𝗼𝗿 𝗖𝗣𝗚𝘀 & 𝗗𝗶𝗴𝗶𝘁𝗮𝗹 𝗖𝗼𝗺𝗺𝗲𝗿𝗰𝗲 ++ - Higher Input Costs → Tariffs on raw materials (aluminum, steel, packaging) increase COGS, cutting into margins. - Consumer Price Sensitivity → Higher shelf prices = lower demand. Consumers switch to private labels, local substitutes, or DTC (Direct-to-Consumer) models. - Erosion of Market Access → Retaliatory tariffs make U.S. brands more expensive abroad, favoring European and Asian competitors. - Disrupted Global Supply Chains → Companies must rethink sourcing, warehousing, and last-mile logistics. ++ 𝗖𝗠𝗢 & 𝗖𝗙𝗢’𝘀 𝗣𝗹𝗮𝘆𝗯𝗼𝗼𝗸 𝗳𝗼𝗿 𝗡𝗮𝘃𝗶𝗴𝗮𝘁𝗶𝗻𝗴 𝗧𝗮𝗿𝗶𝗳𝗳𝘀 ++ 1️⃣Pass-Through Pricing? Be Selective. Don’t just raise prices. Instead, optimize pack sizes, value-tiered offerings, and bundling strategies to maintain affordability. 💡Data-driven pricing elasticity is key—test price sensitivity before making abrupt hikes. 2️⃣ De-Risk Your Supply Chain Nearshoring & Friendshoring → Reduce tariff exposure by shifting suppliers to Mexico, Vietnam, and Eastern Europe instead of China. 💡Dual-sourcing strategies ensure supply continuity amid trade wars. 3️⃣ Digital Commerce is the Safety Net DTC & eCommerce are the antidotes to tariff turmoil. 💡Selling via Amazon, Shopify, or localized fulfillment centers avoids tariff-heavy distribution routes. 💡Localized production + micro-fulfillment hubs = reduced cross-border shipping costs. 4️⃣ Work Capital & FX Strategy Matters More Than Ever Hedging currency risks & cash flow forecasting is critical when tariffs disrupt inventory costs. 𝗧𝗼 𝗮𝗰𝗰𝗲𝘀𝘀 𝗮𝗹𝗹 𝗼𝘂𝗿 𝗶𝗻𝘀𝗶𝗴𝗵𝘁𝘀 𝗳𝗼𝗹𝗹𝗼𝘄 ecommert® 𝗮𝗻𝗱 𝗷𝗼𝗶𝗻 𝟭𝟯,𝟱𝟬𝟬+ 𝗖𝗣𝗚, 𝗿𝗲𝘁𝗮𝗶𝗹, 𝗮𝗻𝗱 𝗠𝗮𝗿𝗧𝗲𝗰𝗵 𝗲𝘅𝗲𝗰𝘂𝘁𝗶𝘃𝗲𝘀 𝘄𝗵𝗼 𝘀𝘂𝗯𝘀𝗰𝗿𝗶𝗯𝗲𝗱 𝘁𝗼 𝗲𝗰𝗼𝗺𝗺𝗲𝗿𝘁® : 𝗖𝗣𝗚 𝗗𝗶𝗴𝗶𝘁𝗮𝗹 𝗚𝗿𝗼𝘄𝘁𝗵 𝗻𝗲𝘄𝘀𝗹𝗲𝘁𝘁𝗲𝗿. #tariffs #CPG #FMCG #CMO

What are Fashion Companies really doing to offset the impact of Tariffs? (Spoiler: It's much more than just moving sourcing out of China.) Tariffs remain a critical factor in fashion logistics and finance, but the strategies brands use to mitigate them continue to evolve. As we navigate the current trade risks, here’s a look at the sophisticated approaches companies are employing: - Diversifying Sourcing Strategically: The shift continues. While China represented 37% of U.S. fashion imports in 2018, current trends and projections place that closer to 26% for 2025. This involves not just moving, but building robust vendor relationships across diverse regions and fostering capabilities like cut & sew in emerging markets. - Disciplined Inventory Management: Smart planning via open-to-buy strategies is key to limiting overstock, minimizing markdowns, and protecting margin. Less inventory means fewer surprises—and less risk of deep discounting. - Tariff Engineering & Trade Program Mastery: Proactively redesigning products, adjusting materials, or changing assembly methods to qualify for lower duty rates. Simultaneously, maximizing the benefits of Free Trade Agreements (FTAs) and other preferential trade programs. - Optimizing Freight Costs: From maximizing PO efficiency to fully utilize ocean containers, to consolidating shipments at origin and securing favorable contracts, companies are focused on driving down freight costs and eliminating avoidable fees like detention and demurrage. - Rethinking Incoterms for Flexibility: Exploring various incoterms, including modified DDP (Delivered Duty Paid) variations, allows for more adaptable cost-sharing agreements between buyers and sellers. However, some incoterms come with varying degrees of risk. - Leveraging Bonded Warehouse Strategies: Using bonded warehouses allows importers to defer duty payments until goods enter the domestic market. This improves cash flow and better aligns tariff expenditures with actual consumer demand. - Implementing Strategic Surcharges / Cost Sharing: While often complex, some companies are implementing targeted tariff surcharges or negotiating specific cost-sharing mechanisms with supply chain partners to mitigate direct margin hits transparently. Similar to how we think about fuel surcharges and freight. What tariff mitigation tactics are proving most effective for your business right now? Share your insights in the comments below! #FashionIndustry #SupplyChain #GlobalTrade #Tariffs #Sourcing #Logistics #ImportExport #RetailStrategy #CostManagement #FashionBusiness #ApparelIndustry

The tariff storm is here. And if it’s not on your risk register yet—add it now. - Supply chains are shaking. - Material prices are increasing. - Budgets are getting squeezed. Looks like we have an escalating trade war on our hands... 📈 Steel & aluminum up 10-25% ⚡ Electrical & HVAC costs jumping 15%+ 🛑 Labor shortages driving wages higher Is your project protected? If you’re not prepared, you’re at risk of unnecessary budget overruns, supply chain issues, and profit loss. That's why I put together a free Tariff Preparedness Checklist—so you can: ✅ Assess your risk exposure ✅ Identify contract gaps ✅ Communicate better with stakeholders Here are the 9 contract provisions you must review immediately: 1. Material Price Escalation ↳ Check if your contract allows price adjustments for rising material costs due to tariffs. 2. Changes in Laws & Regulations ↳ Look how your contract accounts for cost or schedule adjustments when new tariffs or laws impact the project. 3. Delays & Force Majeure ↳ Verify if tariffs and supply chain disruptions qualify as excusable delays under your contract. 4. Change Orders for Tariff-Related Impacts ↳ Confirm whether you can request additional time or money for unexpected tariff costs. 5. Preservation of Rights for Additional Remedies ↳ Know the deadlines and documentation required to claim compensation for tariff-related expenses. 6. Contingency ↳ Determine if contingency funds can be used to offset increased material costs from tariffs. 7. Insurance & Bonds ↳ Check if your contract requires additional insurance or bonding to cover tariff-related cost fluctuations. 8. Termination & Suspension Rights ↳ Understand if you have the right to pause or cancel work if tariffs significantly impact costs or schedules. 9. Dispute Resolution ↳ Study the process (mediation, arbitration, or litigation) for handling tariff-related cost disputes. This is how you protect your project from tariff risks. Most won’t prepare. The ones who do will turn risk into opportunity. I compiled everything I know—compliance tips, risk strategies, and safeguard resources—into a short guide for project managers. It just went out to 6,400+ project leaders in my newsletter. Inside, I break down: - Why these risks matter - What to watch for in your contracts - How to safeguard your project today And more... Don’t wait for tariffs to impact your bottom line. 📩 Grab the checklist here: [Link in comments] How are tariffs affecting your projects? What are you seeing out there? Let’s talk. 👇

Tariffs, while unpleasant, are just another challenge that business leaders face in the quest to guarantee the best possible performance of their companies. This weekend's #tariffs on Canada (25%, 10% on oil), Mexico (25%), and China (10%), while surprising to many business planners due to their targets, severity, immediate enforcement, and justifications, are no different. Work the problem: 🧠 Assess the immediate impact on your #costs, #profitability, and #pricing. If you haven't done so previously, engage in direct, honest, and transparent conversations with your teams, suppliers, and customers to develop a strategic response. Roll out the plan as quickly and efficiently as possible. 🗺️ Consider the medium-term and long-term implications of protectionist trade policies on your business and explore a comprehensive list of tariff mitigation strategies, including: •Strategic sourcing •Product exclusion requests •Country of origin adjustments •Value reduction/first sale tactics •Foreign trade zones and bonded warehouses •Special Harmonized Trade Schedule (HTS) provisions •Duty drawbacks 💡 Normalize a robust #risk assessment and planning process for your organization. Continuously evaluate diversification of suppliers and manufacturing locations. Conduct financial modeling of all inputs. Evaluate manufacturing process changes. Explore vertical integration and ways to eliminate intermediaries. Assess technology adoption and real time tracking of your supply chain. Don't be tariff-ied - you've got this! 💪

📦💥 TARIFF WARS: What is your plan when the rules change overnight? What do you do then?   Another day, another tariff. Rare earths? Taxed. Semiconductors? Taxed. Predictability? No more.   If your company depends on a global supply chain, this isn't just noise, it's your new reality. So let's talk strategy, so there's no panic at this cautious time:   ⏰ Audit your exposure as soon as possible → If your list of SKUs is related to China and involves essential inputs (such as lithium, chips or rare metals), expect tariffs. The cost will be higher and you need to be prepared.   🌏 China + 1 is old. China + MANY is the change. → Vietnam, India, Mexico - even Mars, if it's shipped in time. Diversify your sourcing as you do your investment portfolio. You need to keep an eye on all markets to take advantage of opportunities that arise.   📝 Reorganize your contracts. → Tariff clauses are no longer optional. Flexibility is an advantage. That five-year contract with the supplier? Rethink it.   🤝 Bring production closer to the market. → Nearshore. If you sell in the US, build in the US. If you sell in Europe, move closer. Global agility is the name of the game.   💻 Commercial technology is your advantage. → There are AI tools for tariff classification and tax optimization. If you're not using them, customs will - and not in your favor.   ✏️ Redesign the product to avoid the tariff. → Change parts, alter specifications or get creative. Your engineering team loves a challenge. So does your CFO.   🖥️ Create a real-time dashboard. → “Tariff Tracker 3000” isn't just a fun name. It's your visibility tool for material costs, policy changes and delivery times.   Conclusion: The tariffs are here. You can't control the storm - but you can come down hard.   At Drummond Advisors, we support businesses navigating the intersection of tax, trade, and regulation across jurisdictions. Our multidisciplinary team helps clients: ✅ Analyze and document transfer pricing in line with OECD standards ✅ Develop global tax strategies across the U.S., Latin America, and Europe ✅ Minimize the impact of tariffs through trade planning and structuring ✅ Stay compliant - and competitive - in a changing global economy Ready to rethink your global position? Let's connect.   #SupplyChainHumor #TariffTrouble #RareEarths #ResilienceByDesign #GlobalLogistics #ManufacturingLife #SourcingStrategy #TradeWarSurvivalKit

There was no last-minute deal – the Mexican tariffs are on. Here’s what electronics manufacturing executives must do now: 1️⃣ Dust off your model. If you were on top of it, you’ve already modeled several scenarios – as recently as one month ago. Lock this one in and update with your latest numbers from February and plans for 2025. 2️⃣ Align your team and vendors. You have spent 1000s of hours building models and plans – is it time to pull the trigger on some drastic changes? Whether the answer is “Yes” or “No”, make sure you are proactively communicating with your team, suppliers, and factories to avoid misunderstandings. 3️⃣ Reduce your exposure and optimize. Get trade compliance expertise involved to see how you can leverage valuation, HCS codes, and other tariff engineering tactics to reduce your tariff load. Learn how Chapter 98 exclusions, drawback programs, and renegotiating supplier terms can work in your favor. 4️⃣ Evaluate your 2025 NPI schedules and factory locations. Your models should include a shift in demand due to higher prices (even if you aren’t raising your prices) – how does that impact your portfolio planning for 2025, including NPIs and where you locate them? 5️⃣ Plug into political and legal insights. This issue is about policy, and policy can change on a dime with this administration. Stay connected to industry groups, thought leaders and trade compliance experts to get insights on potential negotiations and changes coming. One of the drastic moves many companies will consider is moving their factories. While I imagine many leaders may want these tariffs to age for a few weeks before pulling those triggers, it’s time to start getting some of the gears in motion. Executive rapid and efficient factory moves is something we’ve developed some expertise in doing – and we’ve been aggregating best practices. DM me if you’d like access. For those who have been through this movie before (in 2018, or otherwise) – what are your top tips to share with the community on what they should be doing right now? #Electronics #Manufacturing #Tariffs #SupplyChain #MexicoTariffs

What should founders do right now to prepare for the ramifications of a #tariff war? Jeff Burkland (CEO and founder of Burkland, which serves as a fractional CFO to 800+ startups) and I sat down to discuss this exact question on Friday. Here's an actionable playbook for #founders to navigate the coming uncertainty: 1) Meet with your top 5-10 customers: Understand how they're adjusting plans. Are they reducing spending? Which areas are highest at risk? 2) Assemble your crisis leadership team: Schedule a meeting early this week to ensure alignment and readiness for swift decision-making. 3) Build scenario plans now: What if you only achieve 50% of your revenue targets this year? Where would you need to cut if you wanted to add 6 more months of runway? 4) Rethink your product roadmap and marketing strategy: Can you introduce features that save your customers money or make your platform essential in tougher economic conditions? 5) Diversify your pipeline: Given the broad reach tariffs can have, we still don't fully understand which companies might be most exposed. Expand your outreach across different sectors and geographies (US and international) to minimize exposure to concentration risk. This moment feels reminiscent of early COVID-19, but there's a crucial difference - government action could rapidly shift the landscape again. This means we need to be prepared for multiple scenarios. Don't underestimate the potential impact of this evolving #macroeconomic climate. Use this weekend wisely - your startup will thank you.

The new U.S. tariffs on Canada and Mexico mean manufacturers face brutal choices in the weeks ahead. Absorb the costs? Pass them to customers? Rethink supply chains entirely? For manufacturers, this isn’t just about higher prices. It’s about navigating uncertainty, protecting margins, and making the right moves before the market forces your hand. Here are five places to start: 1. Reassess your supply chains—Know where your vulnerabilities are and start exploring alternatives. 2. Lock in supplier contracts—Before price hikes ripple through the system. 3. Get smarter about pricing—Don’t just raise prices; rethink value, bundling, and efficiency. 4. Invest in automation—Higher costs require finding ways to do more with less. 5. Plan for long-term volatility—Tariffs aren’t going away. The winners will be those who build resilience into their operations. This is an article I wrote for #forbes a month ago. The tariffs have changed but everything else stands. It's my take on the disruption and opportunities ahead as manufacturing is caught squarely in the crossfire of this trade war. #Manufacturing #Tariffs #SupplyChain #TradePolicy #Reshoring #China #Canada #Industry40 MAGNET: The Manufacturing Advocacy and Growth Network

In times of uncertainty, cash isn’t just king. It’s survival. With the recent wave of tariffs driving up input costs and squeezing margins, many businesses are facing a difficult truth: Revenue projections may be uncertain. But expenses? Those are very real. Now is the time for finance leaders to double down on cash flow forecasting. That means: 💲 Building 13-week rolling forecasts that give leadership real-time visibility into liquidity 💲 Running multiple stress-test scenarios based on varying levels of tariff impact 💲 Identifying where payments can be deferred, and where collections can be accelerated 💲 Re-evaluating working capital strategies to unlock trapped cash In a tariff-inflated environment, profit might be uncertain, but your ability to stay solvent doesn’t have to be. Finance teams that master short-term cash visibility will be in the strongest position to make long-term, strategic decisions. What’s your team doing today to protect liquidity for tomorrow? _____________________________________________ 👋 I'm Melissa Armstrong, CPA*, fractional controller, and founder of SteadyHand Accounting & Advisory.   *𝗡𝗼𝗽𝗲𝗅 𝗜 𝗱𝗼𝗻'𝘁 𝗱𝗼 𝘁𝗮𝘅𝗅