Importers: Turn Tariff Uncertainty into Strategy

With the tariffs announced and the uncertainty of where they will land long term, it's important to have alternative plans for sourcing and a detailed understanding of today's landed costs.

Importers: Don’t let tariff uncertainty leave you flat-footed. Instead, make plans and find ways to reduce your duty exposure.

SOME TOUGH CHOICES WILL HAVE TO BE MADE.

Every organization we’ve spoken to is scrambling in one way or another. It’s hard to execute specific actions without knowing what will be. Many companies are hitting pause on expansion plans and big purchases until they get a better sense of sales and cash flow. Thinking about a 145% tariff outlay is intimidating, even if higher markups might technically cover it. That’s why having a clear tariff strategy for importers is essential for staying resilient when trade policies change overnight.

Here are the basics we recommend and are working through with our clients to help protect their business:

• Map out your supply chain for SKUs that are most exposed to tariff changes. Know exactly where your products are coming from, including items purchased through domestic suppliers, and start exploring alternative production countries if you haven’t already.
  

• Run cost models for different landed cost scenarios, comparing potential new duties to what you’ve paid historically. Sometimes, you might decide to drop certain products altogether.
  

• Partner with brokers to look for tariff engineering opportunities. Sometimes a small change can mean big savings.

  
  

Tariff policy is in flux and every decision carries weight. The more proactive and prepared you are, the fewer surprises you’ll face down the road.