Tariff alert: is your business ready?
The specter of new trade tariffs by the United States is once again planning for international trade, a possibility that is gaining strength under the current Trump administration. Although uncertainty is the norm and the concrete details — which products would be affected, with what exact percentages — are yet to be defined, business prudence advises not to stand idly by.
This is not a divination exercise, but a call to basic preparation. Understanding how these potential trade barriers could affect you gives you a crucial strategic advantage. Here’s a quick and practical guide to evaluating your business’s potential exposure.
Quick context: what are they and why do they sound again?
A tariff is, according to Euronews, a tax that a government imposes on imported goods. They are often used to protect local industries by making them more competitive, to generate tax revenues for the state or as a pressure tool in international trade negotiations. The immediate effect is to make products that cross the border more expensive.
The growing concern about the imposition of new tariffs by the Trump administration has put companies on alert. We have already seen tariffs in sectors such as steel, aluminum and food, and with the threat of more measures, companies need a proactive and urgent assessment of their exposure to risk, both directly and indirectly.
Possible impacts on your company
Higher direct costs
If your company imports goods or raw materials directly from the United States, a tariff will mean an immediate increase in the price of your purchases.
Higher indirect costs
Even if you don’t import from the US, your suppliers (domestic or from other countries) could. If they use affected U.S. components, machinery, or supplies, they’re likely to pass that extra cost on to you in their prices.
Lower competitiveness
An increase in costs, if you can’t absorb it with your margins, could force you to raise prices, risking losing market share to competitors less exposed to these tariffs.
Difficulties in exporting
If you export to the U.S. market, your products could become more expensive there, making it difficult for you to sell. This could happen both because of direct US tariffs and because of possible retaliatory trade measures from other blocs (such as the EU).
Widespread uncertainty
The mere threat or possibility of tariffs creates a climate of instability that complicates medium and long-term planning, investment decisions and smooth supply chain management.
Quick review: evaluate your exposure in 4 steps
Do a basic check to understand your situation:
1. Analyze your purchases to the US:
What products, components or raw materials do you import directly? Are they critical to your production or service? Are there viable and accessible alternatives outside the United States?
2. Consult your key suppliers:
Ask them about their dependence on U.S. imports. This will help you discover hidden dependencies of the U.S. market in your value chain.
3. Review your sales to the US:
Do you export goods or services to this market? What percentage of your turnover does it represent? Are your products easily replaced by local competitors if they become more expensive due to commercial tensions?
4. Assess your sensitivity to cost
:How important are the products potentially affected in your cost structure? How much room for maneuver do you have to absorb increases without seriously damaging your profitability? Could you pass on a price increase to your customers?
What do we do now?
With this first photograph of your situation:
Get informed: keep a close eye on economic news and official releases from commercial organizations to anticipate possible regulatory changes.
Talk: Talk openly with suppliers, customers and logistics partners about this possibility to explore joint solutions and concerns.
Explore alternatives: If you pre-investigate other potential suppliers or markets (import/export) to gain flexibility and reduce dependencies.
Review contracts: Take a look at the clauses on price adjustments, force majeure or supply interruptions to learn about your rights and obligations.
Conclusion: Anticipating is key
The possible application of new tariffs introduces a significant dose of uncertainty to the business landscape. Ignoring this possibility is not the best strategy. Performing this basic review will allow you to better understand your degree of vulnerability and will place you in a stronger position to react if new business measures finally materialize. Proactive preparation, however simple, is essential for business adaptation and resilience in today’s complex global environment.
