Feeling the strain of tightening things up and trying to stay one step ahead of whatever’s coming next? You’re in good company – because this kind of pressure isn’t new.
Sam Walton didn’t have deep pockets or a fancy MBA. But he did have a knack for thinking a few steps ahead. Instead of throwing up his hands when things got expensive, he got creative. He started cutting deals directly with suppliers, trimming operational fluff, and figuring out how to keep shelves stocked and prices low without going broke.
And that “do-more-with-less” mentality built Walmart.
I’m not saying you’re trying to build a retail empire (unless you are – in that case, more power to you). But if tariffs are impacting your Monmouth Beach business, this might be the moment to channel a little Sam Walton – by staying nimble, making smart tweaks, and being in the know when the rules start shifting.
Because the rules have shifted again: The U.S. and China have just reached a new trade settlement. Yes, it’s de-escalation in the broader tariff landscape, but it also brought with it a change that will likely hit your business’s bottom line.
As of this month, the “de minimis” exemption (the one that lets you import goods under 800 dollars from China and Hong Kong without paying duties) has been cut. Which means every small box of parts, promotional items, or packaging supplies that you used to import duty-free now comes with a bill.
All that to say – NOW is the time to lift the hood on your supply chain and see what’s really under there (and how much it’s costing you). Because even if you’re not importing directly, there’s a good chance you’re still feeling the ripple effects.
I’ve got more nuanced strategies for you next week, but today, we’ll start at the foundation of smart supply chain sourcing: visibility.
“Strategy is a pattern in a stream of decisions.” – Henry Mintzberg
As a small business owner, you have to be fond of hats – and wearing lots of them. The past few months have introduced a new hat for you to don:
Trade policy navigator.
Welcome to business ownership in 2025.
And even if you’re not importing goods yourself, your Jersey Shore business might still be quietly absorbing costs — because your vendors (or their vendors) might be exposed to tariffs… that pass down to YOU.
The decisions you make upstream – about who supplies your business and how your agreements are structured – are going to define your downstream profitability. Which is why proactive supply chain sourcing is one of the most powerful tools you have to defend your bottom line right now.
If most of your key products – or the materials that go into them – are coming from one region or one supplier, you’re exposed. Not just to tariffs, but to a domino chain of risk: Shipping slowdowns, sudden price hikes, customs red tape, and even foreign currency swings (that may turn a “good deal” into a money-loser).
And if you’re thinking, “But my supplier is based in the U.S.,” that might be so – but where do they get their materials? Their packaging? Their labor?
So, I recommend mapping out your top 5–10 suppliers. Find out where they source their raw materials, what cost increases you’re feeling from tariffs or shipping issues, and if you have alternate sourcing options in place.
It’s really important that you open this conversation – you may be surprised how little visibility you have into your own supply chain.
And if you do find some risk there, it’s time to explore more baskets. That could mean…
…working with new suppliers with more favorable trade agreements (or, ideally, who don’t have any tariffs to navigate).
…asking your current supplier if they offer alternative product lines sourced from less-tariffed regions.
…shifting to a hybrid model — say, 70 percent from your current vendor and 30 percent from a second source as backup.
Now, fair warning: Alternate sourcing isn’t always cheaper. You might see longer lead times. Shipping may cost more. And quality control is something you’ll have to monitor closely. But you’re not just buying a product anymore – you’re buying resilience.
If you’re like some of the business owners I work with, your vendor and customer contracts were probably written a few years ago… and haven’t been touched since. Meaning, they were built for a pre-tariff pricing environment.
This could be a problem considering the current trade environment. If your contracts aren’t built to handle change, you’re the one absorbing the hit. Your vendor agreements need clauses to protect you.
This goes in the other direction as well. If your input costs have jumped significantly, you’re eating that margin loss (unless you’ve built in room to adjust).
So what can you do? Start by pulling out a few of your key contracts (vendor and customer) and ask these questions:
If not, it might be time to sit down with an attorney (or a CPA you can trust – my team and I can offer insight here) and update those documents. A simple “tariff trigger” clause (which kicks in automatically if duties rise more than X percent) or a “cost pass-through” provision (that allows you to share the increase with your customers) can make a huge difference.
You can also add a currency fluctuation clause if you’re sourcing internationally, especially from countries with unstable exchange rates. Even a 5–10 percent shift in currency can wipe out your profit on a large order if you’re not protected.
I have more strategies for tariff-savvy supply chain sourcing, which I’ll get into next week. But a smarter supply chain has to start here – with your visibility. Because if you don’t know your sourcing risk, you’ll absorb more volatility than you bargained for.
Let’s not let that happen. If you want to talk through how these strategies affect your specific tax position (depreciation, customs declarations, duty drawbacks, the works), I’m happy to dig into it with you:
calendly.com/shorefinancialplanning/the-first-step
To your business’s resiliency,
Joseph Vecchio