What Global Tariffs Mean for Small Product-Based Businesses

If you’re a small business owner who sells physical products, especially if you manufacture or source from overseas, the recent changes in global tariffs may be throwing some extra stress into your already full plate. And we get it, this stuff can feel confusing and completely out of your control. So let’s break it down.

In this blog, we’ll unpack what the recent tariff changes mean for businesses, especially those based in Australia and the US, and how you can prepare and adapt, without the overwhelm.

Wait, what’s going on with tariffs?

Earlier this month, the US government announced a bunch of new tariffs that will impact how much it costs to import goods from over 180 countries and territories. While the US might seem far away from your studio or warehouse in Perth, these changes create a ripple effect that can (and likely will) impact Australian businesses too, especially if you work with overseas manufacturers or sell into the US.

For small businesses that rely on affordable sourcing from countries like China, Vietnam, or India, these changes can increase the cost of producing your goods.
That means tighter profit margins, higher prices for customers, or having to absorb the difference.

How does this impact Australian businesses?

Even if you don’t sell into the US, many small businesses in Australia import materials, packaging, or products from overseas. If your suppliers are being hit with extra costs due to these tariffs,especially if they are US-based, you might see price increases trickle down to you.

For example:

• Your manufacturer in China raises their prices because of cost increases from US tariff pressure.
• Your shipping costs go up because of disrupted global supply chains.
• You get hit with delays, stock shortages, or need to find new suppliers if your current one becomes too expensive.
  
  

Plus, if you’re selling products on international platforms like Amazon, Etsy, or eBay, shifts in pricing and profitability may affect how competitive your products are.

What if you’re selling to the US or using Fulfilled by Amazon (FBA)?

If you’re an Aussie business using Fulfilled by Amazon (FBA) to sell in the US, pay attention. Many small product-based businesses in Australia use FBA to reach US customers because it handles warehousing, shipping, and customer service for you.

But here’s the catch:

• If your products are made overseas and sent to Amazon warehouses in the US, they might be hit with higher costs before they even hit the shelves.
• You may have to raise prices, which can hurt your competitiveness.
• Or you might feel pressure to eat the extra costs, which squeezes your margins.
  
  

And it’s not just about product cost, it’s about speed, reliability, and consistency in getting stock into Amazon warehouses. Tariffs can create backlogs, and backlogs create unhappy customers.

Key challenges small businesses are facing

Here’s what many small businesses (just like yours) are already noticing:

• Costs are going up: Whether it’s materials, packaging, shipping, or manufacturing, it’s all getting more expensive.
• Margins are getting tighter: With rising costs, your profit is shrinking unless you increase prices or find ways to cut expenses.
• Uncertainty is growing: Many businesses aren’t sure how hard they’ll be hit or when it will happen.
• Stress is building: Making decisions around pricing, sourcing, and customer expectations is getting harder.
  
  

Some brands are already feeling the squeeze, while others expect it to hit in the next 3 to 6 months. Even if you’re not feeling it yet, being proactive is key.

How confident are business owners feeling?

When asked how confident they felt about the next 12 months, business owners gave mixed responses. While some felt optimistic and somewhat prepared, many small businesses admitted they’re uncertain, concerned, or downright worried.

The smaller the business, the more vulnerable they feel. Larger brands may have the resources to weather the storm, but solo founders, makers,
and micro-businesses often don’t.

So… what can you do?

Let’s not spiral. There are still plenty of ways you can protect your business and stay profitable, even with these changes.

1. Know your numbers

Take a good look at your cost of goods sold (COGS), shipping, packaging, and any other production costs. Understand your margins. If prices go up,
what does that mean for your bottom line?

2. Talk to your suppliers

Check in with your current manufacturers or suppliers to ask:

• Are they expecting any changes in pricing?
• How will tariffs affect your orders?
• Can they offer any alternatives or suggestions?
  
  

3. Diversify your sourcing

If you rely on one supplier or country, consider finding backups. Explore local options too, they may cost a bit more but reduce risk and lead time.

4. Adjust your pricing strategy

No one likes raising prices, but sometimes it’s necessary to stay sustainable. Communicate openly with your customers and explain why prices are changing.

5. Streamline your business

Find ways to cut back on expenses or improve your systems to save time and money. Sometimes, efficiency can help balance out the rising costs.

What to do if you feel stuck

If all of this feels heavy, you’re not alone. As a small business mentor, I’ve had these conversations with countless clients in the last few weeks.
The world of product-based business is changing, but that doesn’t mean you have to panic or give up.

Instead, get support, talk to other business owners, and take one step at a time.

You’re smart. You’re resourceful. And you’ve already built something amazing, now it’s just time to adjust your sails.

Need help crunching the numbers or reworking your strategy? Let’s chat.

Let’s wrap it up

Here’s the truth: You can’t control tariffs or global politics. But you can control how you respond.

By understanding what’s happening, looking at your numbers, and having a plan, you can stay ahead of the game and protect your business.

The small business community is tough. We’ve survived supply chain chaos, global pandemics, and tech meltdowns. We’ve got this too.

Want help navigating the chaos? Reach out — this is what I’m here for.

Need help working through this?

You don’t have to figure it all out alone. If you want someone to talk numbers, strategy, and pricing with, in plain English — book in a mentoring session with me.
I’ll help you untangle what’s going on, and map out a plan that makes sense for where you are.

Let’s make sure your next move is a smart one.

Lala x

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