With international trade policies evolving, many small business owners in Western Connecticut are beginning to feel the impact of tariffs—government-imposed taxes on imported goods. While tariffs are often discussed in a national or global context, their effects are increasingly local. If your business relies on materials, products, or supplies from overseas, these changes can affect your bottom line.

Tariffs tend to raise the cost of imported goods, and those increases often trickle down through the supply chain. For small businesses, this may lead to higher expenses for raw materials, packaging, or finished products. In some cases, suppliers might adjust pricing or even reduce product availability, which can disrupt inventory planning and operations.

Understanding your exposure to tariffs is an important first step. Take time to review what you’re sourcing from international vendors and determine whether those items are affected. If so, consider exploring domestic alternatives or diversifying your suppliers to reduce reliance on a single source. Building flexibility into your supply chain can help you adapt to changes with less disruption.

Managing inventory wisely is another important consideration. If you anticipate price increases or shipping delays, planning ahead and adjusting your purchasing schedule may help you avoid last-minute surprises. Maintaining strong communication with your vendors can also open opportunities to negotiate pricing, explore new sourcing options, or better understand their long-term plans.

If your business must raise prices to offset increased costs, be transparent with your customers and emphasize the value and quality of what you offer. Many customers understand that broader economic changes affect small businesses. A clear explanation and continued focus on service can help you maintain trust and loyalty.

Another way to offset higher costs is by improving efficiency. This might involve revisiting internal processes, reducing waste, or identifying areas where time and resources can be used more effectively. Small adjustments can have a meaningful impact when margins are tight.

SCORE Western Connecticut is here to help you navigate these challenges. Whether you’re reviewing your supply chain, planning your finances, or rethinking your pricing strategy, our experienced mentors can offer free, confidential guidance tailored to your specific situation. We also provide workshops and resources to help you stay informed about economic trends that may affect your business.

To connect with a certified SCORE mentor, visit www.score.org or call 203-794-1404. By taking practical steps today, your business can be better prepared to manage the effects of tariffs and stay strong in a changing market.