Small businesses are bracing themselves for tariffs that may significantly affect their operation costs and supply channels. Here are few ways they are preparing:
1. Rush Orders: Many businesses are placing rush orders or bulk orders to stock up on goods before the tariffs come into effect. This allows them to secure products at current prices, providing a buffer during the initial phase of the tariffs.
2. Cutting Costs: Businesses are looking for ways to lower their operational costs in order to offset the higher costs resulting from tariffs. This can involve streamlining processes, reducing overheads, or even cutting staff if required.
3. Diversifying Suppliers: Companies are considering sourcing products from countries that may not be affected by the tariffs. This diversification can help them manage uncertainties in their supply chain.
4. Raising Prices: While not a preferable strategy, some businesses may have no other option but to pass on the additional costs to consumers.
5. Crossed Fingers: Ultimately, many businesses are hoping that the tariff situation will be resolved soon, causing minimal disruption.
6. Lobbying : Some businesses take a more proactive route by engaging in or sponsoring lobbying activities, aiming to influence future trade policies.
7. Strategic Planning: Businesses are likely creating contingency plans to prepare for different scenarios that may occur as a result of these tariffs.
Remember, every business will have a different method to prepare as it largely depends on the industry, size of the company, and their individual circumstances.
