When the Numbers Shift Under Your Feet

What You Need to Know About Tariffs and Your Business

There’s nothing quite like waking up to find your product costs have gone up—overnight. No change in your supplier. No switch in materials. Just a government announcement, a new tariff code, and suddenly, your margins are on life support.

If you’ve ever been blindsided by tariffs, you’re not alone.

When tariffs are introduced or increased, small businesses are often the first to feel it—and the last to get a straight answer. Importing goods from China, Mexico, or Europe? Using specialty items from overseas? You may find yourself asking:

• Why did my costs spike?

• Why didn’t anyone warn me?

• What am I supposed to do now?

Let’s break it down.

What is a tariff, exactly?
A tariff is a government-imposed tax on imported goods. It's meant to protect domestic industries, but it often leads to higher prices for business owners like you—especially if you rely on raw materials, packaging, or finished goods from outside the U.S.

What does that mean for your books?

• COGS goes up. Your cost of goods sold may increase without warning.

• Margins get tighter. You may need to reprice your services or products.

• Inventory strategy matters. Holding too much or too little can cost you.

• Cash flow takes a hit. If you don’t adjust quickly, you’ll feel it in the bank account.

What can you do about it?

1. Know your numbers.
   We say this often at ClearPath, because it’s always true. Knowing your profit margins, break-even points, and vendor pricing in detail gives you power.

2. Stay informed.
   Work with your CPA or bookkeeper to keep an eye on global trends and upcoming tariff legislation—especially if your industry is affected.

3. Get creative with sourcing.
   Can you shift suppliers? Change quantities? Pool purchases with a peer business? Strategic adjustments can keep your costs under control.

4. Communicate pricing clearly.
   If you must raise prices, don’t apologize—explain. Your clients value transparency and will understand when increases are necessary to sustain quality.

5. Lean on your bookkeeping team.
   At ClearPath, we help clients run real-time reports that show exactly how these changes affect their bottom line. No more guessing.

Here’s the truth:
Tariffs aren’t fair. They aren’t predictable. And they rarely make headlines until it’s too late.

But with the right financial support, you don’t have to navigate it alone.

Need help understanding how tariffs are hitting your business?
Let’s dig into your numbers, identify the gaps, and chart a better path forward.

Schedule a text or call today.