Tariff Guide for Consumer Brands

One of the most immediate impacts of tariffs is the increase in costs for imported goods. These additional expenses ripple through the supply chain, often resulting in higher transportation and logistics costs. For example, freight rates may rise due to shifts in demand and changing trade routes.  

What this means for your logistics 

Higher costs can squeeze profit margins, forcing tough decisions on whether to absorb the expenses or pass them on to customers.  

Businesses may see narrower profit margins or be forced to pass costs on to customers. 

How to prepare 

We recommend that manufacturers optimize shipping strategies by consolidating shipments and exploring dynamic parcel solutions. It is also worthwhile to work with a logistics partner that benefits from volume discounts with carriers and can pass those savings along to you. 

New tariffs are going to cause shifts in sourcing and manufacturing locations. Many companies are already working to move some of their operations to countries with friendlier tariff agreements, a strategy known as “friend-shoring.” With an urgency to make these types of moves happening among many businesses, bottlenecks and extended lead times are sure to occur alongside this movement. 

What this means for your logistics 

Adjusting to new suppliers may cause temporary disruptions, risking stockouts.  overstock situations, or the need for rework of defective manufacturing, if not carefully managed.  

How to prepare  

We recommend partnering with a 3PL skilled in inventory management to maintain continuity and avoid unnecessary delays as your supply chain adapts. 

Adhering to new tariff regulations requires meticulous documentation and adherence to customs requirements. Even minor mistakes in tariff classifications or shipment paperwork can result in delays, fines, or seized goods. 

What this means for your logistics 

Navigating these complexities adds time and risk to your shipping process, especially if your systems aren’t equipped to handle the increase in volume. 

How to prepare 

Make sure to partner with a 3PL that has the experience and technology to simplify compliance. You’ll need flexible tech that works seamlessly with your systems, has secure EDI integrations, along with a 3PL team that knows how to streamline documentation, ensure data accuracy, and thus reduce the risk of errors. Staying on top of compliance requirements will keep your supply chain moving smoothly.  

Tariffs don’t just affect costs – they also influence consumer behavior. Any costs that trickle down to consumers are likely to shift buying patterns, leading to unpredictable or uneven demand.  

What this means for your logistics 

Supply chain planning will become more complicated. There will be a higher risk of overstocking or understocking depending on how demand fluctuates. 

How to prepare 

Use demand forecasting tools and partner with a 3PL that has flexible warehousing solutions to adapt quickly to changing market conditions. A logistics partner with robust analytic capabilities can help you anticipate trends and adjust inventory levels accordingly.  

The proposed tariffs will create a divide between companies that adapt strategically and those that don’t. Brands that implement smart logistics strategies will have a clear advantage, while others may struggle to keep up. 

What this means for your logistics 

Failing to adjust could mean losing market share to competitors who are better prepared. 

How to prepare 

Work with a proactive logistics partner who understands your unique challenges and offers tailored solutions. The right partner will not only help you overcome tariff-related obstacles but also position your brand as a leader in a changing market.