Tariff Tips to Protect Your Margins and Stay Competitive
Based on the column, A Small-Business Guide to Avoiding and Managing Tariff Costs, originally published in the Philadelphia Inquirer, written by Gene Marks — CPA, national business columnist, and best-selling author who will be speaking at our upcoming Convention. Gene helps business owners, executives and managers understand the political, economic and technological trends that will affect their companies and regularly contributes to top publications like Forbes, The Hill, and The Philadelphia Inquirer.
Tariffs are top of mind for many small business owners — and with good reason. But while it’s tempting to be frustrated, smart businesses are focusing on what they can control: minimizing the impact on operations and profitability.
Here are key strategies to consider:
- Use Free-Trade Zones and Bonded Warehouses: These allow you to delay or avoid paying tariffs until goods are moved out of storage. In some cases, businesses can even bypass tariffs entirely by shipping products directly from bonded warehouses to international customers.
- Tap Into Government and Local Resources: Federal agencies like the U.S. Commercial Service, SBA, and Export-Import Bank offer free guidance. Local organizations, such as the World Trade Center of Greater Philadelphia, also provide support — from sourcing materials in tariff-friendly countries to organizing supplier meetings.
- Cut Overhead to Offset Costs: Review internal costs closely. Many businesses are trimming expenses, improving efficiency, and managing resources more tightly to avoid passing all tariff-related price increases onto customers.
- Be Strategic About Pricing: Instead of raising prices across the board, consider maintaining pricing for your most valuable customers while adjusting for less profitable ones. Show appreciation where it counts — it can strengthen long-term relationships.
- Explore Domestic Suppliers and U.S.-Based Manufacturing: Although not a quick fix, shifting to American suppliers or assembling products domestically can reduce exposure to tariffs. Some businesses are even redesigning products to include lower-tariff components.
- Communicate Transparently: Some companies are adding a separate “tariff surcharge” line item to invoices, helping customers understand price changes without altering the core price list.
- Negotiate with Suppliers: In uncertain times, vendors may be willing to offer discounts, extend payment terms, or renegotiate pricing. Don’t hesitate to initiate those conversations.
- Work with Experts: Accountants, consultants, attorneys, and customs brokers can help optimize costs, review contracts, and ensure you’re classifying goods in the most favorable tariff categories.
- Speak Up: If tariffs are significantly affecting your business, reach out to your elected officials. Policies can change — and your voice matters.
Full story: Philadelphia Inquirer
