If you make or sell products into the U.S., you’ve probably felt the impact of the new tariffs already. They’ve landed hardest on goods from China but other manufacturing hubs like Vietnam, India and Mexico are getting caught in the ripple too.
For founders, that means tighter margins, changing costs and new decisions to make about sourcing, pricing and cash flow.
What a tariff actually is (in plain English)
A tariff is simply a tax charged on goods imported from other countries. It’s meant to protect local industries but for product businesses it usually means one thing higher landed costs.
You either:
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absorb it (your profit shrinks), or
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pass it on (your prices rise).
Neither option feels great, but both can be managed strategically.
What’s happening right now
The U.S. has increased tariffs on thousands of imported items from apparel to electronics. If you manufacture in China, expect a cost jump. Even if you don’t, materials or components you source from elsewhere may still be affected.
It’s a reminder that global manufacturing is interconnected and even indirect exposure can hurt.
The real-world impact for founders
Here’s how this is showing up for many of the product-based founders we work with at Evolve:
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Margins tightening: absorbing higher import costs to protect price points.
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Cash flow strain: paying more upfront for the same goods.
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Inventory challenges: deciding whether to hold more stock or delay orders.
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Shifting customer behaviour: economic pressure in the U.S. is tightening spending, making it harder to pass through price increases.
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Supply-chain pressure: longer lead times, higher freight costs and changing import rules are adding complexity to production planning.
This is the time to zoom out, understand your margins, and make the next decision with confidence.
How to respond and stay ahead
1. Get clear on your exposure
Pull a report on your SKUs and check where each one is made and what tariff now applies.
2. Re-forecast your margins
Build a simple “what-if” version of your P&L, what happens if product costs increase by 5%, 10%, or 15%? Knowing the numbers upfront gives you options.
3. Talk to your suppliers
Many will share the load if you start the conversation early - extended terms or split shipments, partial production moves can help balance risk.
4. Explore a ‘China + 1’ model
Diversifying manufacturing across a second country (like Vietnam, Mexico or India) spreads your exposure and builds resilience.
5. Be honest with your customers
If you need to adjust prices, explain the reasons simply - global cost pressures, freight changes or tariffs. Customers value honesty and consistency over surprise increases.
6. Tighten the basics
Review your freight, warehousing and discounting strategies. Small efficiency gains can offset some of the tariff impact.
7. Consider diversifying your revenue
Explore what other countries have an appetite for your product. Run country based sales data and plan to grow revenue in other countries outside of the USA
The bigger picture
Tariffs will come and go but the businesses that thrive are the ones that stay agile, informed and financially confident.
At Evolve Consultancy Group, we help founders see around corners. From financial modelling and scenario planning to supply-chain strategy, we build clarity into your numbers so you can make calm, commercial decisions - even when global conditions shift.
Because while tariffs might change your costs, they don’t have to change your momentum.
