All business owners are worried about tariffs right now, especially those exporting to the U.S. or relying on U.S. imports. Beyond the immediate financial devastation, the bigger issue is our economic dependence on the U.S.
Rather than focusing on these frustrations, however, businesses must adapt, strengthening operations to reduce reliance on U.S. markets and suppliers.
Some factors have always beyond our control as business owners: government policies, interest and exchange rates, the stock market, and labor markets. However, optimizing internal operations while always beneficial, is now essential.
And taking a longer-term view can put you ahead of your competitors and allow you to build a sustainable business that will thrive even in the worst economic conditions.
If U.S. tariffs impact your business, take immediate action to protect yourself. Consider these strategies:
Lower Prices if Possible Tariffs raise costs for U.S. customers, reducing demand. To mitigate, explore pricing strategies and cost-cutting measures:
- Source cheaper raw materials
- Improve efficiency in production and logistics
- Streamline business systems to reduce overhead
- Determine the margin you are willing to accept and lower your selling price accordingly
Expand Beyond the U.S. Market Diversify your client base. A strong sales process can attract new customers in Canada and beyond, even at lower margins.
Secure Alternative Suppliers Reduce dependency by sourcing materials from Canada or overseas. Diversifying supply chains strengthens resilience.
Re-engineer Products Consider redesigning products to minimize or eliminate tariff-affected inputs, reducing costs and ensuring competitiveness.
Take Action Now Even if tariffs ease temporarily, Canadian businesses must modernize and compete globally. The U.S. will no longer automatically support us.
Delta Tau Management Group is here help during the tariff, or any other challenge your business faces.
