12 Tips for Navigating Tariffs: A Guide for Main Street Businesses
In this episode, host Matt Wagner provides practical guidance for small business owners facing the challenges of new and potential international tariffs.
Preparing for potential tariffs can help reduce the impact they have on your small business. © demaerre
The United States government is currently engaged in ongoing negotiations around international tariffs, with a 10% tariff placed on products from China and a 30-day pause on tariffs impacting Mexico and Canada. As such, the situation is quite fluid. Nonetheless, it’s important from a business perspective to build as much resiliency into your operations. The following is a series of tips that all business owners can consider while staying informed and evaluating any impacts based on their business characteristics and situation. Looking for more in-depth guidance? Listen to this week’s episode of Main Street Business Insights.
Assess your current supply chain for vulnerable areas
How much of your product mix comes from current targets like Mexico, Canada, and China? The European Union has also been mentioned as a potential target over the coming months. Recognize that most suppliers will plan to make pricing adjustments within 30 days of any noticed tariff.
Know your numbers
High-margin products have more wiggle room when it comes to pricing. That flexibility may allow you to raise prices less aggressively and still make a decent profit margin, even if it’s less than before the tariffs were imposed. Also, look back to 2023, when we saw significant inflation. Tariffs will have a similar effect, so the lessons you learned then about consumers’ pricing elasticity will be helpful here.
Order now and build stock
If your business relies on imported goods likely to be affected by tariffs, can you buy more inventory now before they go into effect? For example, do you have a line of credit you could leverage or a low/no interest credit card? Weigh the risks based on your product mix and levels of product turnover, in addition to your own comfort level with debt load. Another consideration — if you have some available operating cash flow and aren’t dealing with perishable products, think about adding to inventory on hand to stretch it as much as possible.
Start researching other suppliers
Much like the pandemic, some suppliers could go under because of tariffs, so you don’t want to be caught off guard without a supply chain opportunity. Consider the location of your suppliers and where they are sourcing. There may be opportunities to diversify by location, thus avoiding countries where a tariff is placed. If you can’t diversify your supply chain, try to negotiate with your suppliers regarding prices or contracts. They may be able to offer you a discount for ordering a certain number of products, for example.
Consider Reshoring
For businesses heavily dependent on imports from other countries, there is a growing source of small-scale producers along Main Streets in various industry sectors, including apparel, food and beverage, personal care products, etc. Consider opportunities to reshore in a favorable way on both price and consumer preference.
Limit other expenses where you can
Can you stretch your current equipment? Do you absolutely need to invest in new fixtures or furnishings? Like many businesses, new hiring, given how large labor costs are to the bottom line, may be impacted.
Communicate with your customers
If you have to raise prices to combat the higher cost of goods, be upfront with your customers and explain why the change is occurring. You can emphasize the quality, uniqueness, or other differentiating features of your products to help justify increasing prices and thank customers for their loyalty.
Streamline operation
Review your current operations and identify any areas where efficiency can be improved. Look for opportunities to streamline processes and cut costs. Saving overhead costs may lessen the impact of increased prices on goods and services.
Seek professional assistance
Your local Small Business Development Centers and SCORE (Service Corp of Retired Executives) are wonderful resources that offer free or low-cost training and counseling. Also, consider financial advisors or accountants who can help you create a personalized plan to combat potential tariff effects.
Leverage Trade Associations and Networking
Many trade associations update their members on tariffs, legal advice, and sometimes even group discounts on tariffs or shipping costs. Connecting with others in the same industry can provide valuable insights and resources.
Stay Agile and Adaptable
The discussion around tariffs is a moving target. It’s always wise to plan ahead so you know what actions or shifts you can take regardless of the situation. Tariffs and trade policies can change quickly, and you should try to be agile enough to pivot to new suppliers, markets, or products when needed.
Small Business Support and Resources
Main Street America is committed to supporting small businesses. You can stay current on all our resources, grants, and insights by checking our Small Business Support page and subscribing to email updates. You can also review my 2025 Small Business Trend Predictions to better understand potential impacts for small businesses in the coming year, and listen to this week’s episode of Main Street Business Insights for more insights into the impact of tariffs on small businesses.
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Small Businesses E‑Commerce Usage Continues to Increase as Holiday Revenues Were Mixed: Results from Our January 2021 Survey of Small Business Owners
We heard from 289 business owners in 35 states plus the District of Columbia in our new text message-based survey of small business owners across the network.
Community Spotlight: Paving the Path from Pop-up to Permanent at the Batavia Boardwalk Shops
The Batavia Boardwalk Shops are freestanding, purpose-built structures acting as seasonal pop-up locations for entrepreneurs, offered in tandem with a business incubator program.
Batavia, IL © April Duda Photography
Business Spotlight: Black Entrepreneurs Leading By Example in Chicago
For Black History Month, we want to recognize and celebrate the Black business owners and entrepreneurs who have overcome challenges and obstacles in launching and running their own businesses, thanks to resilience, creativity, and hard work.
Main Spotlight: Pop-Up Retail: Not Just For Start-Ups, And Other Learnings From Its Evolution
As a vital place factor within an entrepreneurship ecosystem, pop-up programs allow for emerging businesses to test their product, gain consumer feedback, and promote their brand at an extremely low cost. In essence, allowing for a ‘fail-fast’ product development cycle.
Asheville, NC © Ablohkin
Coping with the COVID Crisis in the Midst of the Holiday Rush: Nine Takeaways from Our December Surveys of Small Business Owners and Main Street Programs
In early December, as the COVID-19 crisis intersected with a peak moment in the holiday shopping season, we surveyed small business owners and Main Street programs to learn more about how they were managing.
© Cindy Shebley
Jump off the Business Recruitment Train: The Real Returns are in Cultivating Local Entrepreneurship
New research by Main Street America suggests greater returns on our missions and resources can be had by transitioning to more deliberate economic vitality work centered on cultivating new business development from within our own communities and neighborhoods.
Community Spotlight: Storefront Activation Through Storytelling in Fredericksburg, VA
Fredericksburg Virginia Main Street (FVMS) is taking storefront activation to a new level with their new initiative, the Scan & Love Project, which tells the stories of business owners through personal and engaging videos.
HartBeat of Main Street Grant Program: Spotlighting Tina’s Timeless Threads
Meet a recipient of the HartBeat of Main Street Grant Program
HartBeat of Main Street Grant Program: Center of the Yarniverse
Meet a recipient of the HartBeat of Main Street Grant Program
HartBeat of Main Street Grant Program: Spotlighting The Bankery
Meet a recipient of the HartBeat of Main Street Grant Program
HartBeat of Main Street Grant Program: Spotlighting BuzzBomb Brewing
Meet a recipient of the HartBeat of Main Street Grant Program
HartBeat of Main Street Grant Program: Spotlighting The Owl Wine Bar & Home Goods
Meet a recipient of the HartBeat of Main Street Grant Program
HartBeat of Main Street Grant Program: Spotlighting Griff Goods
Meet a recipient of the HartBeat of Main Street Grant Program
HartBeat of Main Street Grant Program: Spotlighting Mockingbird Bar and Tacos
Meet a recipient of the HartBeat of Main Street Grant Program
Economic Gardening Takes Root: Redesigning the Bricks & Clicks Business Retention Program During the Pandemic
Harrisonburg Downtown Renaissance explores how they redesigned their Bricks & Clicks Business Retention Program during the pandemic.
Business Spotlight: Women-Owned Businesses on Main Street (Part 3)
Meet some amazing women business owners!
New Survey Results: How Small Businesses are Managing the Pandemic and Social Unrest
Read the results of our survey aimed at understanding how business owners are managing the recovery from COVID-19 and responding to recent protests and social unrest related to police violence against Black Americans.
Research Spotlight: Black-Owned Businesses on Main Street and Beyond
Our research team dug into some of the data about the state of Black-owned businesses on Main Street, the structural challenges they face, and how Main Streets can support them.
Main Spotlight: Holiday Shopping During COVID: What Should Main Streets Expect?
Matt Wagner explores how the pandemic may affect the shop small holiday weekend.
Main Spotlight: How Rural Economies Can Leverage the Rise in Remote Work
COVID-19 has led to a rise in remote working. How can small and rural towns leverage this shift to create vibrant local economies?
The Impact of COVID-19 on Small Businesses: Follow-up Survey Report
Detailed findings from our follow-up survey on the impacts of COVID-19 on small businesses to better understand the continued challenges businesses face as the crisis evolves.
Main Spotlight: Recovery and Revitalization Depend on Understanding Human Psyche
How does psychology impact the recovery of our downtowns after the COVID-19 pandemic?
Local Impact: Small Business Saturday
Small Business Saturday® is more than a day to shop. It’s a nationwide movement that shines a spotlight on the importance of supporting small businesses in communities across America.
Community Spotlight: Benson, North Carolina
The Town of Benson started a special project to highlight their downtown businesses.
Community Spotlight: Berkley, Michigan
The Berkley Downtown Development Authority (DDA) proudly debuted its Downtown Berkley Shopping Bag for a Cause through a partnership between Better Life Bags.
Main Spotlight: Learnings from the ESHIP Summit
Supporting new and existing small businesses, and the entrepreneurs who run them, represents a vital aspect of the revitalization of downtowns and neighborhood business districts.
Creating Equitable, Inclusive and Transparent Cities: A Year in Review
The Equitable Economic Development Fellowship is a two-year, one million-dollar effort funded by the Surdna Foundation and the Open Society Foundations to help equity, transparency, sustainability and community engagement become driving forces in local economic development efforts.
Community Spotlight: Mini-Grants Offered to Small Businesses in Jefferson, Iowa
The Jefferson Rotary Club partnered with Jefferson Matters: Main Street to offer mini-grants for building facades and storefront signage to two dozen businesses for up to $500 each.
A Memorable Makeover on Main Street
The Wisconsin Economic Development Corporation (WEDC) partnered with Retailworks, Inc., a commercial interior design, display and branding firm headquartered in Milwaukee, to launch Wisconsin’s Main Street Makeover Contest.
Creative Discovery on the Maker Trail in Enid, Oklahoma
Kelly Tompkins of Main Street Enid shares more about the Maker Trail project and how it inspired creativity and helped people discover downtown.
City Sidewalks, Dressed in Holiday Style
Too often, as we’re strolling our favorite Main Street, we pass empty or dark shop windows that make us want to hurry home a little bit faster. Imagine instead, a charming streetscape adorned with vibrant, lively window displays, showcasing retailers’ favorite products and seasonal gift ideas.
Community Spotlight: #ShopSmall in Goldsboro, North Carolina
Small Business Saturday promo pic from Downtown Goldsboro, North Carolina, showing all the folks who took the pledge support a small business in their community.
Using Local Search Trends to Attract More Customers to Your Main Street
We’ve put together a practical list of some of the things that local store owners can do right now to help them capitalize on this increasing trend in local searches.
Network Spotlight: Main Street Iowa Restaurant Week
From authentic comfort food to farm-to-fork fresh and everything in between, these restaurants, bars, and cafes are key to the thriving social, business, and residential life in the historic commercial districts in Main Street Iowa communities.
Fab Lab Sparks Rural Opportunities
Located in southeast Kansas, Independence (pop.8,799) is home to Fab Lab ICC, which is on track to be the world’s leading innovator in combining entrepreneurial mindset education with a fab lab maker space.
Community Spotlight: Morganton, North Carolina
The craft beer industry is playing a key role in the rebirth of Main Streets and neighborhood commercial districts across the county.
Rethink Storefront Accessibility to Rethink Community Viability
Appealing to mobility-challenged shoppers yields benefits beyond the store.
Sparking a Movement in Small Business and Small Towns
Being the only person in the know can be fun, exhilarating even. Except when you are the one person out of 600+ in a room and you know bad news is coming.
The Lowdown in Downtown LaBelle
Fritz the dog has made his way into the hearts of the residents of LaBelle, Florida, and helped our Main Street Community find a way to make what we do more noticeable.
Pop-Up Altavista 2.0
Altavista On Track, the local Main Street organization, is working to cultivate and sustain local entrepreneurs with an educational business launch competition, Pop-Up Altavista 2.0.
The Bright Center: A Space for Winchester’s Bright Minds to Create, Innovate and Thrive
In Winchester, Virginia, one woman’s vision and commitment to downtown’s revitalization created an innovative community space for the Creative Class.
Why Business Retention and Expansion Plans are Important for Downtowns
A business retention and expansion plan, properly implemented, not only helps keep businesses open but possibly even helps them expand.
Business Investment Guides: “Think B.I.G.”
The first rule of conducting business is “make it simple.” The easier it is to pay for merchandise, get entertainment or obtain a service, the more likely it is that people will take advantage of those options.
Small Box – A Creative Retail Project
Main Street communities across the country are no stranger to seeking creative strategies to solve their most nagging issues – vacant buildings, marketing downtown, bolstering retail to name a few.
Supporting Immigrant Entrepreneurs in the Heart of Boston’s Main Streets
To understand the role that immigrant business owners play in Boston’s small business ecosystem, you need only to walk through any Boston Main Streets district.
Measuring the Economic Impact of Storefront Improvements
Façade appearance is a critical aspect of the overall aesthetic appeal and unique character of downtown.
Sign Design Guidelines
A lot of signs are necessary to make a downtown work well, but not every community knows what a good sign system looks like, or how instrumental it can be to the creation of a successful downtown.
Improving Performance in Main Street Iowa Communities
Main Street Iowa, a program of the Iowa Economic Development Authority’s Iowa Downtown Resource Center, created a one-of-a-kind three-year program to provide help for performance venues located in Main Street districts.
