Tariff Troubles: How SMBs Can Stay Ahead of Rising Costs

With tariffs on Chinese imports in place and potential increases for Mexico and Canada, small and medium-sized businesses (SMBs) face growing supply chain pressures. Unlike large enterprises, they have fewer resources to absorb costs or pivot quickly. Supply Chain 24/7 spoke with Ara Ohanian, CEO of Netstock, about how SMBs can prepare for trade disruptions, the shift toward nearshoring, and how AI can help businesses navigate an uncertain economic landscape.

Supply Chain 24/7: With the 30-day pause on Mexico and Canada tariffs, what should SMBs be doing right now to prepare for potential tariff increases in the near future? 

Ara Ohanian: As we get closer to the Mexico and Canada tariffs deadline, SMBs should use this time to strategically plan for any potential cost increases or supply chain disruptions. Strategies Netstock’s customer base of SMBs are doing right now include: 

• For the short-term: Identifying and redistributing excess inventory within your internal network. As tariffs are imposed, holding onto excess inventory could become a financial burden. Redistributing stock now helps businesses free up cash flow and clear out inventory before new costs hit.
• For the long-term: Finding the right supplier based on performance and location. Businesses should evaluate alternative suppliers in lower-risk, non-tariff-impacted locations to lower transportation costs, reduce lead times, and offer flexibility amid shifting trade policies.

SC247: Meanwhile, …

CONTINUE READING THE ARTICLE FROM Supply Chain 247 HERE