Trump's baseline 10% tariff hit April 5, 2025. Higher rates followed on April 9. The Trump tariffs amount to an average tax increase of nearly $1,200 per US household in 2025. Small businesses face immediate cost increases and supply disruptions. Your margins are shrinking while competitors scramble.
You need fast action. Here are 6 moves that work.
- Audit Your Supply Chain Now
President Trump will impose an individualized reciprocal higher tariff on the countries with which the United States has the largest trade deficits. If you source from China, Europe, or other high-deficit countries, you're paying more than the 10% baseline.
Action Steps:
- Map every imported component - not just final products
- Check tariff rates on HTS.usitc.gov
- Calculate cost increases per item
- Find domestic suppliers within 50 miles
- Test nearshore options in Mexico and Canada (currently exempt)
Why This Works:
Shorter supply chains mean lower tariff exposure. Domestic suppliers eliminate tariff risk completely.
- Raise Prices Before Your Competition Does
American businesses are 'angry,' worried about survival, and say keeping prices low will be 'really hard' Don't wait until margins collapse.
Smart Price Increases:
- Start with low-volume, high-margin items
- Use $19.95 instead of $20.00 psychology
- Bundle products to hide individual increases
- Focus messaging on quality, not tariff costs
- Implement increases in 2-3% increments monthly
- Negotiate tariff cost-sharing with suppliers (split the increase 50/50)
Timing Matters:
Gradual increases feel normal. Sudden jumps trigger customer loss.
- Front-Load Critical Inventory
Small business confidence tracked by the survey is now lower than at any point during Trump's first term Supply disruptions are coming.
Inventory Strategy:
- Order 3-6 months of critical components now
- Split orders across multiple suppliers
- Share warehouse space with other businesses
- Pre-sell inventory to lock in cash flow
- Focus on items with long lead times
Warning:
Don't panic-buy everything. Storage costs money. Focus on your top 20% of products.
Higher costs strain cash flow. Banks get nervous when tariffs squeeze entire industries.
Financial Moves:
- Apply for SBA lines of credit immediately
- Negotiate 60-90 day payment terms with suppliers
- Factor receivables if cash gets tight
- Consider equipment financing for efficiency upgrades
Reality Check:
Lenders approve credit easier when you don't desperately need it.
- Find New Revenue Streams Fast
If tariffs hammer your industry, diversify quickly.
Expansion Options:
- Test local markets (farmers markets, trade shows)
- Launch e-commerce if you haven't
- Offer services alongside products
- Create subscription revenue models
- Partner with complementary businesses
Focus Areas:
Target customers less sensitive to price increases. Premium markets handle cost increases better than budget segments.
- Track Policy Changes Daily
Trump announced most of his tariffs—the ones he calls "reciprocal"— on April 2 Tariff rates change without warning.
Monitoring System:
- Set Google Alerts for "Trump tariffs + [your industry]"
- Follow USTR.gov announcements
- Join industry associations for updates
- Check customs.gov weekly for rate changes
Response Speed:
Big companies move slowly. You can adjust pricing and sourcing in days, not months.
Bottom Line
PWBM projects Trump's tariffs (April 8, 2025) would reduce GDP by about 8% and wages by 7%. The economic impact is real. But small businesses that act fast can maintain profitability.
Your survival checklist: ✓ Map supply chain exposure
✓ Raise prices strategically
✓ Stock critical inventory
✓ Secure financing now
✓ Diversify revenue streams
✓ Monitor policy changes
Move faster than your competition.
