Tariffs Are Here: Five Moves Every Small Business Should Make Now
Every time a president announces a sweeping tariff plan, small business owners start sweating. And rightfully so. The latest policy shifts are the biggest tariff hikes in a century, with baseline 10% duties on almost every import and “reciprocal” tariffs slapped on countries with trade surpluses against the U.S.
Some companies stocked up on inventory before tariffs hit. Others ate the costs themselves to keep prices stable. But the buffer is gone, and the reality is here: tariffs are starting to squeeze, driving up input costs, and setting off ripple effects through the supply chain.
Small businesses don’t have the deep pockets or sprawling supply chain networks that big players do. When costs spike, margins erode, and cashflow turns brittle. If you’re a founder, owner, or operator, you can’t wait for Washington to blink. You need a plan.
Here are five moves every small business should make right now to survive and even position yourself to win in a tariff-heavy economy.
Move 1: Treat Tariffs Like the Taxes They Are
Tariffs behave like indirect taxes layered onto your landed cost and they ripple into pricing, demand, and state and local tax collections.
What to do this quarter
Map exposure SKU-by-SKU. Tag each product and component with HS code, country of origin, tariff rate, and any retaliatory or “reciprocal” risks.
Build a tariff ledger. Record tariffs paid per PO and vendor so you can:
Capitalize or expense correctly,
Support refund claims if litigation or rule changes reverse duties, and
Analyze margin by item with and without tariffs.
Price with intent. Create a pricing waterfall that shows list, discount, freight, tariff burden, and net margin. Decide in advance when you absorb vs. pass through.
Where external help fits: Fractional accounting services can implement a tariff ledger and automate landed-cost calculations inside your ERP. A fractional CFO will make it a planning variable in your budgets and board reporting, not a surprise at month-end.
Move 2: Rebuild Supply Chains Before They Break
Tariffs and enforcement actions raise both cost and compliance stakes. Some partners have negotiated lower baseline rates; others have not. Meanwhile, sectors like steel, aluminum, autos, and lumber remain structurally tariff-exposed.
What to do this quarter
Dual-source critical SKUs. Line up at least one non-tariff or lower-tariff source. Model landed cost, lead time, MOQ, quality, and risk.
Renegotiate contracts. Push for tariff-sharing clauses, indexed pricing bands, and longer visibility on costs.
Screen for origin risk. Validate supplier declarations and bills of materials. Customs is scrutinizing goods routed through intermediary countries to dodge rates.
Reshoring math, not slogans. In some cases, domestic production narrows the gap once tariffs, freight, and failure costs are included.
Where external help fits: An outsourced accounting team can build landed-cost cubes and SKU-level margin reports. A fractional CFO will translate supply options into EBITDA impact, working-capital requirements, and pricing strategy.
Move 3: Make Cashflow Your Operating System
Tariffs change timing as much as totals. You may pay more up front while customers hesitate or shift mix. Liquidity, not just profitability, keeps the lights on.
What to do this quarter
Stand up a 13-week cash model. Weekly receipts, disbursements, and covenant headroom. Roll it forward every Friday.
Stress-test scenarios. +10% and +20% supplier cost. –10% and –20% unit volume. Add 15–30 days to DSO. Plan counter-moves now.
Right-size inventory. Tighten turns without starving sales. Use ABC analysis to prioritize working capital where contribution margin and demand reliability are highest.
Secure flexible credit. Expand LOCs and negotiate seasonal step-ups before you need them.
Where external help fits: A fractional CFO can own the cadence: weekly cash calls, red-flag thresholds, lender comms, and playbooks for “what if” triggers. Fractional accounting services keep AP/AR current so the model is reality, not wishes.
Move 4: Automate Controls and Tax Hygiene
Tariff volatility raises error risk. Sloppy origin docs, misclassified SKUs, or manual AP can create penalties or missed savings (including refunds if courts ultimately unwind duties).
What to do this quarter
Automate the procure-to-pay trail. Three-way match (PO, receipt, invoice), with tariff lines captured as separate codes.
Lock roles and rights. Segregate who sets vendors, approves POs, and releases payments. Enforce MFA and audit logs.
Indirect tax watchlist. Tariffs and inflation can shrink demand. States often react with rate hikes or base expansions. Monitor exposure.
Close faster, close cleaner. Ten-business-day close target: landed cost reconciled, tariff ledger posted, variance analysis complete.
Where external help fits: Outsourced accounting can implement the controls inside your existing stack and maintain documentation for auditors and customs.
Move 5: Stay Legally and Strategically Agile
Policy is moving and the courts are active. Parts of the tariff structure are paused, others intact, and more changes could land on short notice. Companies that prepare documentation and options now will move faster than the news cycle.
What to do this quarter
Create a “rapid response” binder. Import histories, tariff payments by SKU/vendor, origin certificates, and correspondence.
Set pricing guardrails. Pre-approve ranges for pass-throughs and promotions if duties drop.
Track customer sentiment. Inflation and tariff chatter move demand. Watch real-time indicators.
Plan communications. If you must raise prices, explain the why and show value. Equip sales with “total cost” narratives.
Where external help fits: A fractional CFO coordinates legal, trade counsel, customs brokers, lenders, and your board. They align scenario plans with P&L, cash, and covenant realities so you are never reacting blind.
Bottom Line
Tariffs will rise, fall, and zigzag with politics and courts. That’s noise. What matters is whether your business is built to absorb shocks and protect margins.
The operators who treat tariffs as taxes, run supply chain contingencies, live inside a rolling cash forecast, enforce clean controls, and stay ready to pivot are the ones who survive and scale. Everyone else scrambles until they run out of cash.
The fix is not theory. It’s execution. And if you don’t have the bench in-house, bring in outsourced accounting, fractional accounting services, and a fractional CFO to get it done right.
Take the steps to be tariff-ready. Book a strategy call with Ursa. We’ll stand up your tariff ledger, tune your 13-week cash model, and redesign pricing and supply plans—backed by outsourced accounting and fractional CFO leadership—so you protect margins and keep moving.
