Tariffs, Tensions & Transformation: What SMBs Must Do Now to Stay Competitive

In today’s global economy, small to medium-sized businesses (SMBs) across the U.S. are feeling the impact of increasing tariffs more than ever before. What once seemed like distant trade negotiations now directly affect profit margins, pricing strategies, and day-to-day operations. For many SMBs, especially those dependent on international suppliers for raw materials and finished products, the need for decisive, strategic action in an unpredictable predicament is ever so urgent.

Ongoing revisions of U.S. trade deficit with major trade partners have resulted in expanded tariffs on goods from key countries such as China, the UK, Canada, and Mexico. Larger corporations often have more resources to absorb these cost increases or find workaround to avoid delays in production and delivery times. SMBs, however, typically operate with tighter budgets, limited supplier diversity, and tighter inventory levels, making them vulnerable.

At Ardinal Strategy Group, we specialize in business transformation and planning for SMBs. We know how quickly tariffs can erode margins and how essential it is for businesses to adapt fast. That’s why we work with clients to assess the full impact of tariffs on their full opertions, and implement strategies that address three core areas: pricing, supply chain network, and inventory management. Reviewing current pricing is essential when input costs rise due to tariffs. Many SMBs hesitate to adjust prices out of fear of losing customers, but failing to do so can quietly affect profitability. Input costs, shipping cost, delivery changes, overheads etc should be considered holistically before adjusting prices. Ardinal helps businesses develop pricing strategies that reflect real costs while remaining competitive in their markets. We also support effective customer communication around these changes to maintain trust.

Supply chain adjustments are equally critical. If your business relies on international suppliers for raw materials or finished goods, tariffs can inflate production and shipping costs. We help clients evaluate every possible adjustments that can be made across their supply chain network. One solution worth evaluating is the potential for new suppliers in the short term - whether nearshore, or domestic - to reduce exposure to volatile international trade conditions. Using cost/benefit analysis approach, estimate the impact on proftiabilty margins and production. Another solution to evaluate in the short term is whether or not strategically offering only the most demanded products would be sufficient to maintain acceptable margins. Inventory levels must also be re-evaluated. Carrying too much inventory of tariff-impacted goods can tie up cash flow, while too little creates risk in fulfillment. With these supply chain considerations, communication with suppliers regarding current contracts terms and conditions should be at the forefront. We assist SMBs in evaluating inventory strategies that ensure materials and products are available when needed, without excess cost. The current economic climate is forcing difficult choices, but it also presents opportunities for smarter, scalable operations. Tariffs may be outside your control, but how your business responds is not.

At Ardinal Strategy Group, we provide the expertise SMBs need to navigate rising costs, optimize operations, and position for sustainable growth. Our hands-on, customized approach helps clients not only weather the storm, but use it as a catalyst for long-term transformation. If your business is feeling the pressure of today’s global challenges, now is the time to act. With the right expert and forward-thinking strategies, you can turn setbacks into advantages. Ardinal Strategy Group is ready to help you lead through uncertainty and build a more resilient future.