Insights

This weekend marked the beginning of a new trade war, with 10% tariffs slapped on imports from most countries. For many companies, this means an immediate and unavoidable spike in supply chain costs.

But here’s the truth: raising prices isn’t your only option—and it shouldn’t be your first move. In today’s volatile global economy, competitive resilience comes from within. It’s not just about reacting to change—it’s about pivoting with purpose, just as many companies had to do during the COVID-19 crisis.

Inaction will cost you more than tariffs ever could. So, let’s reclaim control, reduce cost exposure, and restore profitability—from the inside out—with these five essential turnaround tactics.

1. Understand the Real Impact of Tariffs

Before you make any moves, get clear on what’s actually being affected.

• Identify affected products: What items are now subject to tariffs? Which categories carry the biggest cost hit?

• Run a cost analysis: How much have your landed costs and profit margins shifted?

• Map your supply chain: Trace every step—where materials are sourced, manufactured, and shipped. The goal? Find weak links before they become profit leaks.

2. Apply a Proven Profit Recovery Framework

Now’s the time to activate your internal systems and transform team performance into profit protection.

• Re-align your leadership and teams for agility, accountability, and execution.

• Unlock value across your people, processes, and tools to reduce waste and uncover savings.

Shift your company from reactive to strategic by turning rising costs into margin opportunities.

3. Optimize Costs & Diversify Supply Chains

The global landscape has changed. Your sourcing strategy should too.

• Explore alternative suppliers in non-tariff regions or lower tariff zones. Avoid China and European Union imports because they have a higher reciprocal tariff rate.

• Consider nearshoring or reshoring to minimize exposure and gain more control.

• Re-evaluate logistics: Renegotiate freight contracts, consolidate shipments, or take advantage of Foreign Trade Zones (FTZs) for savings.

4. Protect and Expand Revenue

You can’t just slash your way to profitability—you have to grow smart.

• Adopt value-based pricing: If your product solves a real problem, the market will absorb a strategic price adjustment.

• Adjust your product mix: Promote higher-margin offerings or bundle products to increase perceived value.

• Diversify your markets: Expand into regions less impacted by tariffs and trade restrictions.

5. Improve Internal Efficiency Immediately

Every dollar saved inside your operations is a dollar preserved for growth.

• Conduct Lean Six Sigma audits to find and fix process waste as soon as possible.

• Leverage automation and digital tools to improve forecasting, inventory control, and decision-making.

Your operations should be as agile and intelligent as your strategy.

Final Word: Control What You Can, Profit From What You Have

You can’t rewrite tariff laws—but you can rewrite your company’s response. This isn’t just a financial adjustment—it’s a leadership moment.

So instead of reacting, be proactive. Your profits don’t have to suffer. You just need the right strategy—and the right frameworks—to take control.

Our Approach: People-Powered Profit System™ for Recovery

We deploy a two-framework strategy to uncover hidden profit, optimize team alignment, and re-engineer operations to reduce the impact of tariffs. With our two proprietary frameworks of A.S.S.E.T.S. and S.T.A.K., we drive operational and financial recovery and align leadership for sustained execution. So, if your company wants to be proactive instead reactive during the beginning of this trade war, then sign up today for our profit loss consulting featuring the People-Powered Profit System on our website. Also, for more tips on how to increase profits, check our podcast, Reducing Profit Loss now available, not only on Spotify, but on iHeart Radio, Amazon Music, Castbox, and Radio Public.