Tariff Checklist: 11 Steps to Prepare Your Business

1. Assess Your Tariff Exposure

• Identify which products, materials, or components in your supply chain are subject to tariffs.
• Review trade policies and tariff updates from relevant government agencies.
• Work with procurement and finance teams to quantify the financial impact.

2. Review Regulatory Compliance & Trade Classifications

• Ensure products are correctly classified under HS codes to avoid unnecessary tariff charges.
• Explore free trade agreements (FTAs) or special tariff exemptions that could reduce costs.
• Work with legal and compliance teams to stay aligned with import/export regulations.

3. Evaluate Supplier & Sourcing Alternatives

• Assess the feasibility of diversifying suppliers or shifting sourcing to tariff-free countries.
• Explore domestic suppliers as potential alternatives.
• Negotiate long-term pricing agreements with current vendors to mitigate cost fluctuations.

4. Optimize Supply Chain & Inventory Management

• Reevaluate inventory levels—stock up on essential tariff-impacted goods when possible.
• Explore alternative shipping routes or warehousing strategies to reduce costs.
• Consider duty drawback programs or bonded warehouses to defer tariff payments.

5. Implement Strategic Pricing Adjustments

• Use AI-driven price optimization to dynamically adjust rates based on demand, market conditions, and tariff changes in real-time.
• Consider temporary surcharges to recover tariff-related costs without disrupting base pricing.
• Offer tiered pricing or substitute products to provide cost-effective alternatives.
• Create product bundles to distribute tariff-related costs across multiple products, reducing sticker shock on high-tariff items.

6. Offer Rebates or Incentives to Soften Price Increases

• Offer volume-based rebates or future purchase incentives to encourage loyalty despite price increases.
• Implement loyalty rewards or credit-based incentives to retain price-sensitive customers.
• Structure promotions strategically to offset perceived price hikes.

7. Leverage Contract & Currency Strategies

• Work with suppliers to negotiate cost-sharing agreements on tariffed goods.
• Lock in foreign exchange (FX) hedging strategies to offset cost fluctuations.
• Review and update contracts with customers to include cost-adjustment clauses.

8. Communicate Transparently with Customers

• Clearly explain tariff-related price changes in customer communications.
• Train sales teams to position pricing adjustments effectively.
• Provide alternative product suggestions for cost-conscious buyers.

9. Diversify Market & Revenue Streams

• Expand into new customer segments or international markets less impacted by tariffs.
• Offer value-added services to differentiate your business from price-based competition.
• Build strategic partnerships to share supply chain risks and costs.

10. Strengthen Financial & Risk Management Strategies

• Conduct a financial impact analysis to forecast cash flow and profit margins under tariff scenarios.
• Develop a contingency plan for sudden tariff increases or trade restrictions.
• Work with banks or financial institutions to explore trade finance options that ease cash flow strain.

11. Stay Agile & Monitor Policy Changes

• Keep track of ongoing trade negotiations and potential tariff reductions.
• Stay informed on government relief programs, tax credits, or tariff exemptions.
• Regularly review pricing and supply chain strategies to adapt as needed.

This 11-step checklist provides a holistic roadmap to help businesses proactively manage tariffs—from pricing and sourcing to risk mitigation, compliance, and automation.