6 Hacks SMBs Can Use To Avoid Tariffs

Tariffs eating into your margins? This video shows how small and mid-sized businesses can use the same tariff-reduction strategies as big brands to lower duties, protect profits, and stay competitive. If you import products, manufacture goods, or manage inventory, this is a must-watch. 00:00 - Intro 00:30 - The Impact of Tariffs on Small-to-Medium-Sized Businesses 01:02 - What is a Tariff? 01:40 - Hack #1 Tariff Engineering 02:40 - Hack #2 Bonded Warehouses and Free Trade Zones 03:40 - Hack #3 Duty Drawback Programs 04:28 - Hack #4 Smart Inventory Forecasting 05:19 - Hack #5 Financial Tactics 06:03 - Strong Inventory Control 06:58 - Outro 📖 Resources: https://www.youtube.com/watch?v=t0N6LIA1eLc https://www.inflowinventory.com/blog/us-tariffs-on-europe https://www.inflowinventory.com/blog/secret-life-of-inventory-navigate-tariffs https://www.inflowinventory.com/blog/how-tariffs-work https://www.inflowinventory.com/blog/impact-of-us-tariffs-on-uk-businesses https://www.inflowinventory.com/blog/how-tariffs-and-costs-influence-consumer-choices ✅ Try inFlow Inventory for free: https://www.inflowinventory.com/ ✅ Try StockTrim for free: https://go.stocktrim.com/account/register?kfl_ln=inflow-inventory-archon-systems-inc Stay connected: https://www.facebook.com/inFlowInventory/ https://www.linkedin.com/showcase/5276148/admin/feed/inflowinventory https://www.instagram.com/inflow.inventory/ https://www.tiktok.com/@inflowinventory #tariffs #tariffsexplained #inflow #inflowinventory //Transcript (Edited for Time)// Are you a small business owner watching your profit margins disappear because of tariffs? [...] Today, I'm going to show you the exact playbook that successful companies are using to navigate these tariffs and thrive. [...] Tariffs are taxes on imported goods. And they're paid by the importing company. So if you're importing goods that's you, not your supplier [...] Importers and retailers are seeing immediate cost jumps due to these new tariffs. Manufacturers relying on global components are facing higher production costs. And exporters, they're getting hit with retaliatory tariffs from other countries [...] The first hack that I'm going to be talking about today is called tariff engineering [...] It's designing your products to fall into lower tax categories [...] Work with a customs broker to review your HS codes. Sometimes a small design change like adding a pocket, changing a material, or modifying packaging can move you into a completely different tariff category [...] Hack number two is all about using bonded warehouses and free trade zones, [...] Basically, a bonded warehouse lets you store imported goods without paying tariffs until they're released into the domestic market [...] if you re-export those goods directly from the bonded warehouses to another country, you might avoid paying tariffs entirely since they never entered the domestic market. Free trade zones, they work similarly, but they're even more useful for anyone that's doing light manufacturing or assembly because you can store your inventory there and only pay duty on the finished product once it enters the market [...] Now, here's a hack that most businesses don't even know exists. Duty drawback programs. If you re-export imported goods or products that include imported components, you can get a refund on the tariffs and import fees that you've already paid [...] The key here is to maintain thorough records of your imports and exports [...] Sometimes a simple improvement in your demand forecasting can make all the difference. This is where inventory forecasting tools like StockTrim become invaluable. Their AI-powered forecasting helps you predict demand patterns and optimize your ordering schedule around tariff changes. [...] It takes into account your historical sales data, seasonal patterns, and lead times to give you precise recommendations [...] To start, there's the first sale rule. Instead of paying tariffs on your suppliers marked up price, you can often pay based on the original manufacturer's cost. [...] Next, optimize your cash flow by using customs payment programs that lets you pay duties monthly instead of per shipment, and you can also consider consolidating shipments whenever possible [...] Lastly, try to negotiate with your suppliers to share the tariff costs [...] Bulletproof inventory management [...] When tariffs are constantly changing, you need real-time visibility into your actual costs of goods, including duties and fees [...] This is where inventory management software like inFlow makes all the difference. It tracks the true landed costs of every item, including tariffs. [...] You can manage multiple suppliers with different lead times and costs, which is crucial when you're diversifying your supply chain to avoid tariffs. inFlow also handles multi-location inventory. So if you're using bonded warehouses or free trade zones you can track exactly where your inventory is at all times [...]