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Tariffs Impact on Small Business

Like Richardson, Foudy suggested small businesses try to negotiate favorable deals with their suppliers now and, if possible, lock them into that deal for a long-term period. Doing so, Foudy said, could help avoid cost increases a year or two down the line if tariffs stick.

On the other side, he said avoiding long-term commitments with customers could give you more flexibility to raise prices down the line if you must pass on costs to them, but communicate to them now the potential risks tariffs pose so they aren’t blindsided if the day comes you adjust your prices.

Finally, Foudy said, small businesses expecting that some essential goods will be impacted should stockpile them now, before prices increase. Doing so could save them a lot of money later, even though the upfront expense could hurt in the short term.

Even if tariffs are here to stay, Foudy said, the real impacts of these economic shifts are never felt until years after implementation. For small businesses worried about cost increases caused by tariffs, now is the time to act.