In June 2025, U.S. businesses face a challenging economic landscape marked by escalating tariffs. President Trump’s recent decision to double tariffs on imported steel and aluminum to 50% has intensified cost pressures across industries. This move, aimed at bolstering domestic production, has led to increased input costs and supply chain disruptions, compelling companies to reassess their operational strategies.
A survey by Gallagher indicates that 90% of U.S. business owners are concerned about the impact of these tariffs, with 69% identifying supply chain disruptions as a major risk. The cumulative effect of these tariffs has resulted in over $34 billion in losses for global companies.
In this volatile environment, CEOs and CFOs must adopt proactive measures to mitigate risks and sustain profitability. This article outlines strategic approaches to navigate the tariff-induced challenges effectively.
1. Diversify and Localize Supply Chains
Reliance on international suppliers, particularly from tariff-impacted regions, exposes companies to heightened risks. Best Buy, for instance, reduced its merchandise sourced from China from 55% to 33% by relocating manufacturing to other regions.
Action Steps:
- Supplier Diversification: Identify and engage with suppliers in countries not affected by current tariffs.
- Local Sourcing: Explore domestic suppliers to reduce dependency on imports and leverage potential cost benefits.
- Supply Chain Mapping: Conduct a thorough analysis of the supply chain to identify vulnerabilities and develop contingency plans.
2. Implement Strategic Pricing Models
Tariffs inevitably lead to increased costs, which can erode profit margins. However, strategic pricing can help manage these impacts.
Action Steps:
- Transparent Communication: Clearly communicate price changes to customers, explaining the reasons behind them to maintain trust.
- Dynamic Pricing: Adopt flexible pricing strategies that can adjust to fluctuating costs and market conditions.
- Value-Based Pricing: Focus on the value delivered to customers to justify pricing adjustments.
3. Optimize Financial Operations
Effective financial management is crucial in navigating tariff-induced challenges.
Action Steps:
- Cost Analysis: Conduct a detailed review of operational costs to identify areas for savings.
- Cash Flow Management: Enhance cash flow forecasting to anticipate and prepare for potential financial strains.
- Investment in Technology: Leverage financial management software to improve efficiency and decision-making.
4. Engage in Policy Advocacy
Active participation in policy discussions can influence decisions that impact your industry.
Action Steps:
- Industry Associations: Join industry groups to collectively advocate for favorable trade policies.
- Government Engagement: Communicate with policymakers to express concerns and suggest practical solutions.
- Public Awareness: Educate stakeholders about the implications of tariffs to garner broader support for policy changes.
5. Leverage Professional Advisory Services
When navigating the financial complexities created by rising tariffs, companies need more than reactive cost-cutting—they need strategic, experienced partners who understand how to preserve enterprise value under pressure. That’s where Masthead Financial & Capital Advisors comes in.
Our team works alongside CEOs and CFOs to develop proactive strategies that align capital structure, operational efficiency, and long-term growth. Whether you’re looking to restructure your supply chain finances, adjust forecasting models, or assess cross-border impacts on your margins, we bring hands-on support through every phase.
How Masthead FCA can help:
- Fractional CFO Services: Gain senior financial leadership without the full-time overhead. We provide financial modeling, scenario planning, and KPI alignment to help you anticipate and mitigate tariff-related disruptions.
- Fractional COO Services: Optimize operations to increase resiliency. We identify bottlenecks, streamline workflows, and implement scalable systems that support margin stability.
- Transaction & Strategic Advisory: From deal structuring to M&A readiness, we help assess and defend value—especially when external market shifts challenge internal assumptions.
- Capital Markets Expertise: Access capital solutions that support strategic pivots, working capital expansion, or sourcing transitions—without compromising your balance sheet.
At Masthead, we don’t just offer advice. We work inside your business to lead critical initiatives, uncover hidden value, and position you to thrive amid uncertainty.
Conclusion
Tariffs may be the latest disruptor, but they’re far from the first—and they won’t be the last. From the 2008 financial crisis to the global shockwaves of COVID-19 and today’s rapidly shifting tariff and supply chain dynamics, Masthead Financial & Capital Advisors has helped companies not just survive, but emerge stronger.
We’ve guided businesses through liquidity crunches, operational overhauls, and high-stakes transitions—always with an eye on sustainable growth, enterprise value, and strategic clarity.
If your organization is feeling the pressure of rising costs, supply instability, or margin erosion, now is the time to act. Don’t go it alone.
Partner with a team that’s been through the storm—and knows how to chart the course forward.
Contact us to learn how Masthead can help you mitigate risk and seize opportunity, even in times of uncertainty.
References:
- Reuters – Trump’s tariff tally: $34 billion and counting, global companies say – https://www.reuters.com/business/trumps-tariff-tally-34-billion-counting-global-companies-say-2025-05-29/
- Reuters – Trump tariffs stoke supply chain worries for US businesses, survey shows – https://www.reuters.com/world/us/trump-tariffs-stoke-supply-chain-worries-us-businesses-survey-shows-2025-06-03/
- Financial Times – Donald Trump says he will double steel and aluminum tariffs to 50% – https://www.ft.com/content/b85586fe-5886-4c90-bc29-c3284413e0dc
- Wall Street Journal – Retailers, Ducking Trade-War Curveballs, Stick to Their Plans – https://www.wsj.com/business/retail/trump-tariff-court-ruling-kohls-best-buy-20cb2708
- Forbes – How To Manage Price Increases During The Tariff Crisis – https://www.forbes.com/sites/shephyken/2025/04/15/how-to-manage-price-increases-during-the-tariff-crisis/
- Deloitte – Enhancing supply chain resilience in a new era of policy – https://www2.deloitte.com/us/en/insights/industry/manufacturing/managing-supply-chains-amid-tariffs.html
- Masthead Financial & Capital Advisors – Services – https://mastheadfca.com/services/