Tariff Survival Playbook

What you need to know. What you need to do. And how not to lose your mind.

📍 WTF Just Happened?

On April 2, 2025, Trump dropped a fresh batch of tariffs, including “reciprocal” ones.

Basically: if another country taxes US products, we’re taxing theirs.
Some countries got crushed (China, India, Vietnam). Others like Mexico, Australia, and Canada got a pass.
If your product touches the wrong country even once, your costs are up—instantly.
It’s not only raw materials. It’s packaging. Components. Accessories. Stickers. End result? Margins are bleeding out.

<aside>

Disclaimer:

Some of these tariff rates may vary, especially for different sectors, but I’ve shared the general tariff rates.
With everything going on, a few sources indicate different tariff rates for countries, so please do your own research.
The tariff rates have been changing on a daily basis now due to the ongoing trade war, so the rates may vary from what has been mentioned above, at the time you’d be reading this. </aside>

🚫 First, Don’t Do Anything Stupid

Before you go full chaos mode...

Don’t:

Do this instead:

🛠 Okay, Now What? (Tactical stuff you can actually do)

Negotiate. Don’t Absorb.
- Ask your supplier: “How much of this price hike is the actual tariff?”
- Push back if it feels like they’re padding.
- Offer longer-term commitments in exchange for better pricing.
Delay Reorders
- If you’ve got 4+ weeks of stock, wait.
- Time buys you leverage, and clarity.
Explore FTA Friendly Manufacturing
- Countries like Mexico have no tariffs (USMCA-compliant products) + shorter lead times.
- Doesn’t have to be your entire production. Start with high volume SKUs.
Shift Packaging Local
- No need to ship paper across oceans.
- Find vendors in your country or continent for boxes, stickers, wraps.
- It’s not as convenient, sure. But if you’re paying heavily for this, could be worth a look.
Bundles for Margin Protection
- Group tariff hit SKUs with high margin ones.
- Add value (guides, perks, digital freebies) to raise AOV.

💵 Comms, Cash Flow, and Community

Be Transparent (Without Writing a Novel)
- Short SMS/email update: “We're sorting out some supply chain pain. Thanks for riding with us.”
- Add context on PDP if delays or price bumps are expected
Cut the Dead Weight
- Pause ads on anything below a 60% margin post-tariff
- Kill slow sellers. Move clearance units fast.
Reforecast Q2-Q3 Now
- Add 15-20% COG buffer to all forecasts
- Triple-check breakeven ROAS numbers
Tap Into Founder Circles

Ask:
- “Anyone using a packaging vendor in X?”
- “Who’s quoting Mexico production this week?”
- “New freight estimates from China?”
Reward Loyalty
- Offer prepaid bundles
- Drop loyalty perks for SMS subscribers
- Run urgency-based promos to your top segments

🔁 Bonus Moves

Shrink Packaging to Reduce DIM Weight
- DIM weight is a margin killer
- Smaller boxes, less fluff = more savings
Re-Check HTS Codes with Broker
- Ask: “Is this the lowest legal tariff code for our product?”
- Small tweak can save $$$
A/B Test Price Lifts with Value Adds
- Try a 5–7% increase on high velocity SKUs
- Pair with: free shipping, bonus item, loyalty points
Be Loud, Be Human (Comms)
- Update PDPs with an honest delivery timeline
Use SMS for quick updates when stock shifts
- Keep emails short, clear, and empathetic
Supplier Check-In email template (modify accordingly)

Subject: Quick Clarification on April Tariff Impact

“Hey [Supplier Name],

Hope you’re well. Wanted to check in regarding the tariff changes introduced on April 2nd.

Can you help clarify:
1. What % of our current quote is impacted by tariffs?
2. Is any portion being absorbed from your end?
3. Are there alternative factories/materials that could maintain cost?
Appreciate your transparency here as we plan Q2.

– [Your Name]”

🧾 Final Note

Written by Ibrahim Masood