Ongoing global trade tensions have led to a surge in tariffs, affecting a wide range of industries and supply chains. From electronics and machinery, to raw materials and consumer goods, many businesses are grappling with higher import levies, escalating costs and shifting trade policies. For wholesalers, distributors and B2B sellers, these tariff-related disruptions put additional pressure on already fragmented supply chains, leading to increased procurement costs and squeezed profit margins. However, this disruption also presents opportunities to renegotiate supplier contracts, adjust pricing strategies, explore alternative sourcing regions and expand international distribution networks, reducing dependency on any single market and ensuring long-term resilience.

Recognize Tariffs as a Negotiation Opportunity

While higher tariffs often increase costs and undercut demand, they can also provide leverage in supplier negotiations. Many manufacturers, suppliers and factories worldwide are feeling the strain of increased duties, making them more willing to offer price concessions, extended payment terms, or shared shipping costs to retain business. Whether sourcing from Asia, Europe, or South America, businesses should proactively engage in cost negotiations to offset tariff-related price hikes. Now is the ideal time to request a Cost of Goods Sold (COGS) reduction, ensuring profitability amid rising trade costs.

Expand Internationally to Offset Tariff Risks

With the trade landscape becoming increasingly unpredictable, companies must look beyond traditional markets. E-commerce platforms like Shopify provide businesses with the tools to expand internationally, offering multi-currency support, localized shopping experiences, and seamless regional payment processing. By adjusting store settings to cater to global customers, businesses can reduce dependency on tariff-heavy regions and tap into new revenue streams. At 40Seas, our Global Accounts Receivable platform seamlessly integrates with ERP and accounting systems, automating invoice reconciliation, purchase order matching, and real-time payment collection. By supporting multiple currencies and payment methods, including credit cards, direct debits, and digital wire transfers, it simplifies transactions for businesses operating across borders. This type of financial automation is crucial for B2B companies expanding internationally while managing cash flow efficiently.

Why Now Is the Time to Adjust Pricing

For brands that have been considering price increases, the current tariff situation provides a strategic window to implement them. Consumers and businesses alike are aware of the rising costs associated with imported goods, and this presents a rare opportunity where price hikes can be justified without immediate skepticism. Transparency is key – explaining that tariff-related costs are driving price adjustments can help ease customer concerns while protecting profit margins. Major brands are already making adjustments. For instance, Acer recently announced price increases on laptops in the US, citing higher import levies on hardware. This move reflects a broader trend in which many companies are recalibrating their pricing strategies in response to trade policy changes. Businesses that delay adjusting their pricing models may struggle to absorb increased costs, impacting their bottom line in the long run.

Leveraging Smart Logistics & Automated Accounts Receivables

Given how the tariff trade shocks have added an additional layer of complexity and uncertainty to the global supply chain, the importance of efficient cash flow management has never been more pronounced. Amid these challenging macroeconomic and geopolitical conditions, businesses should prioritize quick productivity wins, especially as it pertains to cash flow management. Automation offers a timely, effective solution, streamlining data synchronization across platforms and departments while enhancing visibility into accounts receivable processes. With 93% of companies planning to automate AP operations, those slow to adapt risk falling significantly behind in efficiency and competitiveness.

Upcoming Webinar on Tariff Laws

One of our partners Portless will be holding a timely webinar entitled ‘How New Shipping & Tariff Laws Affect Retail & What You Can Do’ on Wednesday February 26th at 1:15pm - 1:45pm ET. The free webinar will provide in-depth insights into retail shipping / tariff laws from expert brokers and cross-border tax lawyers, who will outline actionable steps to help businesses navigate these changes.

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For more information on the 40Seas Global AR platform, visit our homepage and click ‘Request a Demo’ on the top right hand side of the page. A member of our team will be able to handle your query directly!

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