{"id":105379,"date":"2026-06-02T17:58:42","date_gmt":"2026-06-02T21:58:42","guid":{"rendered":"https:\/\/sciotocountydailynews.com\/?p=105379"},"modified":"2026-06-04T10:51:23","modified_gmt":"2026-06-04T14:51:23","slug":"imports-markups-and-margins-a-closer-look-at-the-tariff-squeeze","status":"publish","type":"post","link":"https:\/\/sciotocountydailynews.com\/imports-markups-and-margins-a-closer-look-at-the-tariff-squeeze\/","title":{"rendered":"Imports, Markups, and Margins: A Closer Look at the Tariff Squeeze"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Tariffs are eating margins for breakfast.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Nationwide importers have experienced landed costs increasing while retail prices are remaining firm. Profit is being squeezed from both ends. If you&#8217;re a small business with limited cash on hand, it can be crushing.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But here&#8217;s the good news&#8230;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Smart tariff mitigation can recover many of those dollars. Most are accessible to every business owner who does their homework.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This article breaks down exactly how to fight back.<\/span><\/p>\n<h3><b>Here&#8217;s The Game Plan:<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Why Tariffs Hit Small Businesses Hardest<\/span><\/li>\n<\/ul>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The Real Cost Of Doing Nothing<\/span><\/li>\n<\/ul>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">6x Tariff Mitigation Strategies That Work<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-weight: 400;\">Why Tariffs Hit Small Businesses Hardest<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Let&#8217;s get one thing straight&#8230; Tariffs are not paid by the foreign exporter.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">They get paid by the importer. Translation: as soon as your shipment clears customs, you write Uncle Sam a check. Even if you haven&#8217;t sold the product. Even if your customer is slow to pay. You pay the tariff up front.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This creates a brutal cash flow problem.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Looking for real world stories on <\/span><a href=\"https:\/\/www.netstock.com\/research\/2026-tariff-impact-report\/\"><span style=\"font-weight: 400;\">how tariffs affect small businesses<\/span><\/a><span style=\"font-weight: 400;\">? Tariff mitigation is now the ONLY factor preventing margin collapse for many importers. New reports show that 292,000 small business jobs were lost in 2025, and small firms felt the worst of the tariff punches.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Smaller companies can pass through only 54% of the cost of tariffs to their customers. Their larger competitors can pass through 65% or more.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">That gap is everything. It&#8217;s the difference between staying open and shutting the doors.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">The Margin Math Is Ugly<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Think about a product with a 35% gross margin and 20% EBITDA margin.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Tariffs reduced gross margin by 5 points to EBITDA 15%. This is a 25% decrease in operating profit, on precisely the same amount of revenue. <\/span><b>Same sales.\u00a0 Less profit.<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Margin compression is killing importers these days. Profits look great on paper, but cash is quickly disappearing.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">The Real Cost Of Doing Nothing<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Some importers are just absorbing the hit and hoping things go back to normal.<\/span><\/p>\n<p><b>Bad idea.<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Here is what happens when you don&#8217;t take action:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Cash reserves drain faster than expected<\/span><\/li>\n<\/ul>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">You delay or cancel growth investments<\/span><\/li>\n<\/ul>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Customers shop competitors who priced smarter<\/span><\/li>\n<\/ul>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Suppliers tighten payment terms when they see weakness<\/span><\/li>\n<\/ul>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Lenders pull lines of credit at the worst time<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Poll after poll confirms this. 55% of executives are planning to raise prices by up to 15% within 6 months. If you aren&#8217;t following suit, you&#8217;ll be left behind on margin.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">6x Tariff Mitigation Strategies That Work<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Now on to the good stuff&#8230; Here are six tactics that work today for importers of all sizes.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Audit Your Tariff Classifications<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Most importers are paying too much duty because they&#8217;re using the wrong HTS code.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This occurs frequently. A broker fills in best guesses, goods clear through customs, and no one ever notices for years. You could be in a lower duty bracket with the correct classification.<\/span><\/p>\n<p><b>Here&#8217;s what to do:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Pull your last 12 months of entries<\/span><\/li>\n<\/ul>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Get an expert to review each HTS code<\/span><\/li>\n<\/ul>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">File a Post Summary Correction on misclassified goods<\/span><\/li>\n<\/ul>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Update your product master so future entries are correct<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">It will reduce your duty bill significantly by itself. It&#8217;s the easiest strategy of them all.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Diversify Your Supplier Base<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">If all your inputs come from one country, you have one country&#8217;s tariff problem.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Nearshoring and reshoring is BIG RIGHT NOW.\u00a0 Vietnam, Mexico, India, Malaysia, and even domestics in <\/span><a href=\"https:\/\/sciotocountydailynews.com\/the-impact-of-us-economic-events-on-global-markets-a-calendar-guide\/\"><span style=\"font-weight: 400;\">the US<\/span><\/a><span style=\"font-weight: 400;\"> are all back in the game.\u00a0 You don&#8217;t have to completely overhaul your supply base overnight.\u00a0 Begin with these steps:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Identify your top 5 imported SKUs by tariff exposure<\/span><\/li>\n<\/ul>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Get quotes from suppliers in 2-3 alternate countries<\/span><\/li>\n<\/ul>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Run a small pilot order to test quality<\/span><\/li>\n<\/ul>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Scale up the winners over 6-12 months<\/span><\/li>\n<\/ul>\n<h3><span style=\"font-weight: 400;\">Use Free Trade Agreements<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">The US has free trade agreements with 20 countries.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The big players are <\/span><a href=\"https:\/\/en.wikipedia.org\/wiki\/United_States%E2%80%93Mexico%E2%80%93Canada_Agreement\"><span style=\"font-weight: 400;\">USMCA<\/span><\/a><span style=\"font-weight: 400;\"> (Mexico and Canada). However Korea, Singapore, Chile, Australia and more have FTAs as well. If your product qualifies under one of these agreements, your rates plummet. Often to zero.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Here&#8217;s the rub. You must demonstrate origin. Certificates, material bills, and documentation. It&#8217;s paperwork you want to do. But it pays off.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">First-Sale Valuation<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Here&#8217;s a strategy most importers have never heard of&#8230;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">First-sale valuation allows you to pay duty based on what your supplier paid the factory, rather than what you paid your supplier. The markup of the middleman is eliminated from the dutiable base.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">When products flow through a trading company \/ sourcing agent this could be a huge win.\u00a0 Requires a good paperwork trail of <\/span><a href=\"https:\/\/sciotocountydailynews.com\/how-digital-currencies-can-reach-every-corner-of-the-economy\/\"><span style=\"font-weight: 400;\">transaction flows<\/span><\/a><span style=\"font-weight: 400;\">, but boy is it worth it!<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Strategic Inventory Management<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">When tariff changes are announced in advance, timing is everything.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Some importers are rushing orders in advance of the new tariffs. Others are slowing down orders if they think demand will fall. In either case, importers don&#8217;t want to be stuck with expensive inventory.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The trick is to:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Watch trade policy news closely<\/span><\/li>\n<\/ul>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Model out 2-3 different tariff scenarios<\/span><\/li>\n<\/ul>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Pre-negotiate flexible terms with suppliers<\/span><\/li>\n<\/ul>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Keep cash on hand for opportunistic buys<\/span><\/li>\n<\/ul>\n<h3><span style=\"font-weight: 400;\">Smart Pricing Adjustments<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Sometimes you have no choice but to raise prices.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Whittle it down.\u00a0 Don&#8217;t apply a percentage across the board.\u00a0 Be selective.\u00a0 Consider:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Which SKUs have the most pricing power<\/span><\/li>\n<\/ul>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Which competitors have already raised prices<\/span><\/li>\n<\/ul>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Which customers will tolerate increases<\/span><\/li>\n<\/ul>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Which products can be bundled to hide the increase<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Done right, this protects margin without scaring off your best buyers.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Bringing It Home<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Tariffs are not going away anytime soon.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, that doesn&#8217;t mean your margins have to suffer along with them. The importers who thrive in this climate are those who view tariff mitigation strategies as a continuous project.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To quickly recap:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Audit your classifications and fix the bad ones<\/span><\/li>\n<\/ul>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Diversify your supplier base across multiple countries<\/span><\/li>\n<\/ul>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Use free trade agreements wherever they apply<\/span><\/li>\n<\/ul>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Explore first-sale valuation for indirect sourcing<\/span><\/li>\n<\/ul>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Time your inventory with policy changes<\/span><\/li>\n<\/ul>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Adjust pricing surgically, not blindly<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Choose one of these tactics and execute it this month. Then choose another one next month.\u00a0 In six months, you&#8217;ll have built up defenses that will help maintain your margins regardless of how tariffs change.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In this market if you plan as an importer you win. If you don&#8217;t plan&#8230; you&#8217;re already losing.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Tariffs are eating margins for breakfast. Nationwide importers have experienced landed costs increasing while retail prices are remaining firm. Profit is being squeezed from both ends. If you&#8217;re a small business with limited cash on hand, it can be crushing. But here&#8217;s the good news&#8230; Smart tariff mitigation can recover many of those dollars. Most [&hellip;]<\/p>\n","protected":false},"author":1570,"featured_media":105380,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"post_subtitle":"","om_disable_all_campaigns":false,"_mi_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"jnews-multi-image_gallery":[],"jnews_single_post":{"subtitle":"","format":"standard","override":[{"template":"2","parallax":"1","layout":"right-sidebar","sidebar":"default-sidebar","second_sidebar":"default-sidebar","sticky_sidebar":"1","share_position":"float","share_float_style":"share-monocrhome","show_share_counter":"1","show_featured":"1","show_post_meta":"1","show_post_author":"1","show_post_author_image":"1","show_post_date":"1","post_date_format":"ago","post_date_format_custom":"Y\/m\/d","show_post_category":"1","post_reading_time_wpm":"150","post_calculate_word_method":"str_word_count","zoom_button_out_step":"2","zoom_button_in_step":"3","show_post_tag":"1","show_comment_section":"1","number_popup_post":"1","show_inline_post_related":"1"}],"image_override":[{"single_post_thumbnail_size":"crop-715","single_post_gallery_size":"crop-500"}],"trending_post_position":"meta","trending_post_label":"Trending","sponsored_post_label":"Sponsored by","disable_ad":"0"},"jnews_primary_category":[],"jnews_social_meta":[],"jnews_override_counter":{"view_counter_number":"0","share_counter_number":"0","like_counter_number":"0","dislike_counter_number":"0"},"jnews_post_split":{"post_split":[{"template":"1","tag":"h2","numbering":"asc","mode":"normal","first":"0","enable_toc":"0","toc_type":"normal"}]},"footnotes":""},"categories":[283],"tags":[28062,295],"yst_prominent_words":[],"class_list":["post-105379","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy","tag-different","tag-jobs"],"yoast_meta":{"yoast_wpseo_title":"Imports, Markups, and Margins: A Closer Look at the Tariff Squeeze - Scioto County Daily News","yoast_wpseo_metadesc":"Tariffs are eating margins for breakfast.Nationwide importers have experienced landed costs increasing while retail prices are remaining firm.","yoast_wpseo_canonical":"https:\/\/sciotocountydailynews.com\/imports-markups-and-margins-a-closer-look-at-the-tariff-squeeze\/"},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/sciotocountydailynews.com\/wp-json\/wp\/v2\/posts\/105379","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sciotocountydailynews.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sciotocountydailynews.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sciotocountydailynews.com\/wp-json\/wp\/v2\/users\/1570"}],"replies":[{"embeddable":true,"href":"https:\/\/sciotocountydailynews.com\/wp-json\/wp\/v2\/comments?post=105379"}],"version-history":[{"count":0,"href":"https:\/\/sciotocountydailynews.com\/wp-json\/wp\/v2\/posts\/105379\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/sciotocountydailynews.com\/wp-json\/wp\/v2\/media\/105380"}],"wp:attachment":[{"href":"https:\/\/sciotocountydailynews.com\/wp-json\/wp\/v2\/media?parent=105379"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sciotocountydailynews.com\/wp-json\/wp\/v2\/categories?post=105379"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sciotocountydailynews.com\/wp-json\/wp\/v2\/tags?post=105379"},{"taxonomy":"yst_prominent_words","embeddable":true,"href":"https:\/\/sciotocountydailynews.com\/wp-json\/wp\/v2\/yst_prominent_words?post=105379"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}