"Experts are recommending several unique ways to deal with Trump’s tariffs and adjust business models to cope. Darrin Beer, Western Regional Manager, CIT Commercial Services advices retailers and importers seek new sourcing alternatives. He feels the process of shifting sourcing overnight without risking quality, production schedules or both as virtually impossible. Therefore, he advices concerned US retailers and their suppliers to make their own decisions on how to engage with tariffs issue and whether to protest through trade groups or elected representatives."

Experts are recommending several unique ways to deal with Trump’s tariffs and adjust business models to cope. Darrin Beer, Western Regional Manager, CIT Commercial Services advices retailers and importers seek new sourcing alternatives. He feels the process of shifting sourcing overnight without risking quality, production schedules or both as virtually impossible. Therefore, he advices concerned US retailers and their suppliers to make their own decisions on how to engage with tariffs issue and whether to protest through trade groups or elected representatives.

Tightening the supply chain

Sydnee Breuer, Executive Vice President, Rosenthal & Rosenthal recommends tightening the supply chain. She terms the idea of burdening factories entirely with tariffs as unrealistic. She feels tariffs will impact higher-end brands with their higher margins lesser than lower-margin and lower-priced private-label business. The lion’s share of this price increase will have to be borne by factories and importers, which in turn will compel them to trim their operating expenses.

Rob Greenspan, President and Chief Executive, Greenspan Consult believes as companies affected by these tariffs will continue to look for sources of production outside China; they will try to pass these additional costs to the retailer, who will in turn, pass them to the consumer. This will refrain the consumers from buying the product.

Sunnie Kim, President and Chief Executive, Hana Financial is more concerned about the impact ib supply chain, resulting in lower sales and profits for clients and higher prices for consumers. The retail industry will likely be impacted in the same manner. While Robert Meyers, President, Republic Business Credit believes the tariffs will impact clients depending on their category, reliance on Chinese suppliers and the actual price sensitivity of customers. Small businesses like Flintridge Financial Solutions will have to pass on the higher prices to their customers, especially if they do significant business with major discount chains. However, bigger companies like Wells Fargo Capital Finance would ultimately raise their prices. They will continue to have the option of shifting to vendors with alternative supply chains.

Tariffs to open new avenues of growth

Ken Wengrod, President, FTC Commercial Corp urges companies to utilise and invest more in technology so they can speed up the creation-to-engineering process by cutting down sampling costs, improving yields on their raw materials and reducing idle times in transition, especially on the water. In similar fashion, US importers need to find alternative places of production within the US and Latin America to reduce their cycle time. The uneasiness of potential apparel tariffs will thus open business’s mindsets to welcome the change in environment.