Tariff-Proof: How to Prepare Your Business to Withstand Trade Wars

Starting April 2, the federal government will implement a broad set of new tariffs on foreign goods — including automobiles, shrimp, uranium, and more. In addition, a reciprocal tariff policy will go into effect, applying new duties to imports from countries that currently impose tariffs on U.S.-made products.

Regardless of where small business owners stand on these trade measures, the impact could be significant. Higher input costs, supply chain delays, and shifting customer prices may all come into play. That’s why now is the time to evaluate your operations and put safeguards in place. Being proactive can help ensure your business remains steady, competitive, and prepared for whatever changes lie ahead.

1. Conduct a Tariff Impact Audit

Before you can respond to the new wave of tariffs, you need to understand how they actually affect your business — and that starts with a Tariff Impact Audit. This process involves reviewing your supply chain, vendor contracts, and cost structures to identify where new duties will hit hardest.

Begin by creating a list of all imported goods your business depends on — either directly through your own sourcing or indirectly through your suppliers. Then, cross- reference these items with the new tariff schedules going into effect April 2. Are your raw materials, ingredients, or finished products subject to new duties? Will your vendors pass those added costs on to you — or absorb them?

The goal of this audit is to quantify potential cost increases, flag high-risk dependencies, and uncover any weak spots in your current sourcing model. Once you know where you're exposed, you can take targeted action — adjusting prices, renegotiating contracts, or finding alternate suppliers — rather than reacting blindly after the fact. In short, you can’t manage what you haven’t measured. A tariff impact audit gives you the visibility you need to protect your margins and maintain control during trade disruptions.

2. Communicate with Suppliers Early and Often

In times of policy shifts like these, clarity is key — and your suppliers are one of your most important sources of information. Open, proactive communication can help you stay ahead of any cost increases, delays, or disruptions resulting from the new tariffs. Reach out to your suppliers and ask how they expect the April 2 tariffs to affect their pricing, sourcing, or lead times.

These conversations don’t have to be confrontational or intense — even a brief check-in shows that you’re staying informed and thinking ahead. Ask whether they’ve identified alternative sources, if they’re planning to pass on additional costs, or whether contract terms may be adjusted as conditions change.

The earlier you know what’s coming, the more time you’ll have to make strategic decisions. And by maintaining open lines of communication, you position yourself as a reliable and prepared partner — which can strengthen those relationships in the long term.

3. Diversify Your Supply Chain

When tariffs strike, businesses with limited sourcing options are the first to feel the pain. If you're relying on a single supplier — especially one based in a country now subject to new duties — you're vulnerable to price spikes, shipping delays, and potential shortages. Diversifying your supply chain isn’t just smart; it’s essential to staying operational in an increasingly volatile trade environment.

Start by identifying which of your suppliers are impacted by the new tariffs taking effect April 2. Then, actively seek out secondary or tertiary suppliers in different countries — or even domestic alternatives if possible. For high-risk goods, consider maintaining modest inventory buffers or negotiating flexible contract terms that allow for fast pivots. Supply chain redundancy may add complexity, but it pays dividends when international conditions shift.

Resilient businesses don’t wait until the disruption hits to find alternatives — they build flexibility into their operations ahead of time.

4. Update Your SOPs to Include Tariff-Contingency Protocols

Your Standard Operating Procedures (SOPs) are only as useful as they are current. With the new round of tariffs set to disrupt the flow and pricing of critical imports, it’s essential that your SOPs account for these risks. Think through key operational areas that could be affected — procurement, pricing, inventory management — and outline step-by-step protocols for what to do if specific goods become delayed, inflated in cost, or unavailable altogether. Clear guidance empowers your team to act quickly and consistently when disruption hits.

If your business doesn’t yet have a formal Business Continuity Plan (BCP), now is the time to change that. Tariffs can create ripple effects that extend far beyond your immediate supply chain. Without a roadmap in place, even small delays or cost surges can lead to lost revenue, customer dissatisfaction, or operational paralysis. A BCP will help you prepare for scenarios ranging from moderate delays to severe product shortages, ensuring you're not caught flat-footed.

If you need help formulating a Business Continuity Plan, consider checking out the Tempest Risk Management website, which offers to create plans for small businesses at an affordable price.

5. Monitor International Policy Changes Weekly

Tariffs don’t happen in a vacuum — they’re part of a broader, fast-moving global trad landscape. As the U.S. imposes new duties, other countries may respond with their own countermeasures, impacting the availability and cost of key imports. Staying informed about these shifts is essential for anticipating risks and adjusting your strategy in real time.

Designate someone on your team — or set aside time yourself — to track updates from credible sources like the U.S. Trade Representative (USTR), the Department of Commerce, or industry trade groups. Even scanning a weekly newsletter or news briefing can help you spot early signs of regulatory changes, retaliatory tariffs, or updated product lists.

Staying Ready in an Uncertain Trade Environment

Tariffs may be outside your control — but how you respond to them isn’t. The upcoming policy shifts on April 2 serve as a reminder that small businesses must stay agile, informed, and prepared. Whether it’s diversifying suppliers, auditing your exposure, refining your operations, or building out a continuity plan, the key is to act before disruption becomes crisis.

No one can predict exactly how global trade dynamics will unfold. But with the right safeguards in place, your business can absorb shocks, adapt quickly, and stay focused on growth. Treat resilience not as a one-time project, but as an ongoing discipline — and you’ll be better positioned to navigate whatever comes next.