In early April, President Donald Trump invoked emergency powers to slap sweeping new tariffs on imports – a 10% baseline duty on all incoming goods, with much steeper “reciprocal” rates on countries running big trade surpluses with the U.S.
Trade experts call it “the single biggest trade action of our lifetime.”
These mega-tariffs are driving up costs across industries and rattling supply chains. Even a temporary 90-day pause has done little to ease uncertainty, as businesses “don’t know how to plan for their Q3 and Q4 sales” under constant policy whiplash.
With the third quarter of 2025 looming – when initial grace periods and delays expire – small business owners need to act fast.
Here are five critical, concrete moves to make right now to weather the tariff storm in Q3:
1. Audit your supply chain for tariff exposure
Start with a thorough tariff exposure audit of your supply chain.
List every product, component, or material your business imports (directly or through distributors) and check which ones now incur the new tariffs.
Cross-reference these items against the tariff schedules that took effect in April – including the 10% universal import tax and any higher country-specific rates. For each, determine the cost increase your business faces.
Just as importantly, talk to your suppliers.
Ask if they plan to absorb some of the tariff costs or if they will pass them entirely on to you. This audit will pinpoint where you’re most vulnerable to price spikes, delays, or supply disruptions.
With clear visibility into your risk, you can make informed decisions, such as adjusting pricing, negotiating new terms, or seeking alternative suppliers, rather than flying blind as tariffs bite.
In short, know exactly how and where the tariffs hit your operations before Q3 begins, so you can craft a survival plan around those pressure points.
2. Diversify and fortify your sourcing strategy
Relying on a single country or supplier is a recipe for pain when tariffs strike.
Now is the time to diversify your supplier base and supply lines, fast.
The old adage “don’t put all your eggs in one basket” applies here: if you source heavily from a newly tariffed country, explore other geographies immediately.
For example, consider shifting orders to lower-tariff countries like Mexico, India, Vietnam, or other Southeast Asian nations that aren’t as impacted.
In some cases, even paying a bit more to buy from a U.S. or tariff-exempt source could be worth the stability – it avoids the unpredictability of policy changes and retaliation.
Domestic sourcing or nearshoring can also shorten your supply chain and reduce shipping delays.
Additionally, strengthen relationships with backup suppliers: open lines of communication with secondary vendors now, before you’re in a crisis.
As one sourcing expert put it, supply chain diversification is no longer optional – it’s a strategic necessity in the tariff era. pThe goal is to ensure that by Q3, no single tariff or trade policy decision can knock out your ability to stock key inventory. Spread out your risk now, and you’ll be far more resilient if trade tensions escalate further.
3. Revisit pricing now and communicate with customers
With costs climbing, rethink your pricing strategy well before Q3.
Tariffs function like an import tax, and ultimately, many businesses will have to pass at least a portion of those costs to customers to survive.
“We have no choice [but] to raise prices. Tariffs are paid by Americans, by American businesses,” lamented one small retailer facing higher import costs.
Review each product line and identify where price increases might be feasible without destroying demand. You may not need (or want) to simply jack up all prices across the board, but strategic adjustments are often necessary to preserve your margins.
For instance, you could implement moderate increases on import-heavy items, or bundle products and add value in ways that justify a higher price.
Watch how competitors are responding as well – if industry leaders are raising prices due to tariffs, it gives cover for smaller firms to do the same.
Crucially, communicate early and honestly with your customers about any upcoming changes. Develop clear messaging that explains the situation (e.g., unprecedented tariff costs) and highlights what you’re doing to maintain quality and supply.
Major retailers have already been transparent about price hikes tied to tariffs, and customers may be more understanding if you don’t spring it as a surprise.
4. Strengthen your cash cushion before the squeeze star
Flexport CEO Ryan Petersen warns that up to 80% of China-reliant small businesses could “just die” if 145% duties stick.
Don’t wait for margins to evaporate:
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Cut non-essentials now—freeze discretionary projects, renegotiate software or freight contracts, and hunt for waste.
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Pull cash forward. Invoice immediately, offer small early-pay discounts, and chase slow accounts.
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Secure extra credit while you still look healthy. Finextra’s 2025 SME guide urges founders to expand credit lines before lenders tighten.
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Smart stockpiling: Big retailers from Costco to Williams-Sonoma are bulking inventories ahead of tariff hikes to lock in lower costs. If you have the space and cash flow, bringing critical items in early can be a lifesaver.
Having that financial breathing room could mean the difference between riding out the next few volatile months or running out of cash.
5. Leverage tariff relief options and stay agile
Finally, make sure you’re taking advantage of any relief valves or workarounds in this new tariff environment.
Start by reviewing whether your imports qualify for existing trade agreements or special programs.
For example, goods that meet USMCA (NAFTA) rules of origin can still enter tariff-free from Canada or Mexico.
Ensure you have the proper certifications so you’re not overpaying on North American trade. Likewise, check if any of your product categories are exempt or under quota – certain pharmaceuticals, semiconductors, and other critical items were excluded from Trump’s tariffs.
It may also be possible to reclassify some products under different Harmonized System codes if they can legally fit a category with a lower duty rate (consult a customs expert for this).
Additionally, keep an eye on the developing rules for exclusion applications. In past tariff rounds, U.S. trade officials allowed companies to petition for exemptions on specific imports that had no ready substitutes.
Be prepared to file such requests or to band together with your industry association to lobby for relief, especially if the tariffs are crippling a sector.
Above all, stay informed and agile.
Tariff policies are evolving rapidly – a pause today could turn into an escalation tomorrow, or vice versa. Assign someone on your team to monitor trade news and brief you on any changes or government guidance.
By leveraging trade agreements, tariff engineering tactics, and being ready to pivot your plans, you can soften the blow of the duties.
Agility is your best ally: the businesses that survive will be those that plan for multiple scenarios and can adapt quickly as new developments unfold.
Prepare for the worst, seize any opportunity, and remain ready to adjust course through Q3 and beyond.
Conclusion
Trump’s “mega-tariffs” have transformed the trade landscape, placing heavier burdens on small businesses that rely on imports.
The 90-day respite offered scant relief, leaving owners bracing for Q3’s formal tariff deadlines.
Yet by auditing your supply chain, diversifying sources, revisiting pricing, shoring up cash flow, and leveraging relief mechanisms, you can reduce the sting.
Planning ahead beats scrambling in panic mode when new duties lock in.
Most importantly, remain flexible.
Tariff policies can shift rapidly, especially amid shifting global tensions.
In these uncertain times, small firms that anticipate multiple outcomes — and keep backup plans in place — are the ones best positioned to survive, and even thrive, in the face of unpredictable trade barriers.
