How Companies are Navigating Tariffs Right Now
Hi there – my newsletter this month is a little different. Many of my clients are taking different approaches to the newly announced tariffs and I thought it would be beneficial for all of my readers to understand these different approaches.
For some, it’s about real-time strategy shifts into full tilt change. For others, it’s trying to anticipate what will happen next and playing the long game.
Many are also using this time to stress test assumptions, optimize supply lines, change marketing tactics and position themselves more competitively.
What’s most interesting to me is the variety of approaches I’m seeing.
Because the nature of my work is in market research and competitive analysis, I often have a front row seat in these types of talks.
Although I’m not writing new supplier contracts, I am brought in to help my clients answer:
- “What are our competitors doing?”
- “How are others planning on pricing through this?”
- “Where can we start looking for alternatives?”
- “What is the risk of standing still?”
- “How can I keep updated on policy changes that will affect us directly?”
Here are 6 of the most common approaches I’ve seen since these new tariffs were announced.
Staying Put for Now – But Not Standing Still
For some clients, the immediate strategy is to tap inventory reserves that were built up in anticipation of tariffs – these companies have quite literally bought themselves some breathing room.
But this is not inaction – I’m working with these companies to find new suppliers in lower tariff areas like the United Kingdom, Singapore and those that are covered by the USMCA.
These clients are taking advantage of the buffer they have built for longer term strategy planning.
2. Eyes Open, Options Ready
Not all of my clients are rushing to act – many of them believe that these tariffs will be significantly scaled back or removed entirely in the coming weeks (even days). They see no need to make any adjustments for now.
Instead, they are investing in intelligence gathering. I’m now providing weekly market signal reports that track tariff developments, government policymaker commentary, industry movements and trade volume trends (reply to this email if you are interested).
This gives them situational awareness and the ability to act fast when their trade picture changes.
3. Sharing the Pain
Many companies are choosing a middle path: they are not restructuring their entire supply chain, but they are not absorbing all of the cost either.
Instead, they are distributing the tariff impact across 3 fronts:
(1.) Asking suppliers to take on some of the burden
(2.) Accepting a smaller margin hit on their own balance sheet; and
(3.) Increasing prices slightly for customers to take on some of the cost
I worked with a client to gather competitive pricing strategies and to see how their competitors are altering their messaging. This gave them the confidence to proceed with their own adjustments for now, without falling outside of market expectations.
This approach is extremely practical as U.S. trade policy is expected to be extremely fluid in the coming days and weeks.
4. Shift and Shrink
The math changes when costs go up. A few clients of mine have responded to this by shrinking their product lines for now. The goal is to concentrate on top-selling, high-margin products that can better absorb price volatility.
I helped a client identify which of their products are “sticky” - those that have repeat purchases or strong brand attachment. The goal is to cut with precision and not guesswork.
5. Nearshoring as a Strategic Hedge
Instead of pulling the plug on existing suppliers entirely, some companies are experimenting with partial nearshoring. But this is not a full shift – instead, this is a hedge and perhaps a temporary one at that.
These companies are building flexibility into their models by onboarding new suppliers, especially those that fall within USMCA definitions.
I worked with a client to identify potential suppliers and gather intelligence on cost, lead times, quality and political stability. With this information, their internal teams can now approach and vet potential new suppliers.
I’m also tracking what their competitors are doing so they don’t get left behind. This approach builds long-term resilience and mitigates new tariff exposures.
6. Turning Tariffs into a Sales Strategy
Some of my clients are now using tariffs as a marketing opportunity – one American manufacturer I work with reframed its domestic supply chain as a strategic advantage.
Their new messaging is “we made it here – so your prices stay the same”. It plays especially well with B2B buyers who are looking for stability.
Before launching this new message, I conducted a short survey of their customer base to see if it would be viewed positively – we found that customers appreciated the peace of mind this new messaging brought.
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Across a wide range of industries, I’m seeing companies take different - but equally thoughtful - approaches to navigating these new tariffs.
What’s standing out to me isn’t size or speed, but a clear focus on staying informed, asking the right questions and building strategies that can flex under pressure.
If you are rethinking your strategies, curious about how your competitors are responding or trying to spot where the true risks lie – I’d be happy to talk.
Until next time,
Kristen