How Strategic Financing Can Protect Your Profits Amid Trump's Tariffs

The turmoil surrounding President Trump’s proposed and realized tariffs — particularly on key trade partners like China, Mexico, and Canada — continues to create financial strain for many U.S. businesses. In this rapidly changing environment, companies are facing difficult decisions on how to navigate higher production expenses, manage pricing pressures, and adjust their supply chains.

As we’ve seen, the effects of these tariffs are far-reaching, and with the evolving nature of trade tensions, it’s clear that businesses must remain adaptable to remain profitable.

Previously, I discussed the potential consequences of tariffs on the top three U.S. trade partners, the uncertainty surrounding tariff increases, and some ways that businesses are adjusting their strategies to mitigate these risks.

In this blog, we’ll look at recent developments, explore strategies for mitigating tariff impacts, and discuss the role of flexible financing solutions in maintaining liquidity during these turbulent times.

Following the Trump tariff timeline

The ongoing trade policy changes have businesses reassessing their supply chains and financial strategies. There have been many announcements and updates regarding tariffs, and unsurprisingly, that can be difficult to keep up with.

On Feb. 1, 2025, the White House announced tariffs on China, Mexico, and Canada to go into effect on Feb. 4. This prompted Mexico and Canada to negotiate with the U.S., resulting in a 30-day reprieve from the tariffs.

The proposed 10% tariff on Chinese imports did go into effect on Feb. 4. Originally, this also came with the end of de minimis treatment, which shields lower value shipments from duties, for packages valued under $800.

After retaliatory economic measures were taken by China, the order was amended. It remains unclear if the administration will reverse course again, especially considering the ongoing congressional discussions on de minimis reform, which suggest further changes to lower-value imports may be imminent. This is particularly noteworthy not just for consumers and retailers, but for drop shippers, logistics companies, and others involved in the distribution of imported goods.

When March 4 arrived, so did the previously delayed 25% tariffs on Mexico and Canada; however, there was a lower rate of 10% implemented for energy imports from Canada. At the same time, an additional 10% tariff was applied to imports from China, piling onto the previous 10% and historical levies.

On March 5, Trump paused tariffs on auto imports from Canada and Mexico for one month. The following day, March 6, he further expanded the exemptions to include goods that fall under the United States-Mexico-Canada Agreement (USMCA). Trump did indicate at the time that these exemptions would expire on April 2.

While the announced tariffs on steel and aluminum have not experienced as much back and forth in headlines as some of the other levies, all future plans remain subject to change, leaving businesses operating under a cloud of uncertainty. Regardless of how things proceed, companies are working to minimize disruptions and mitigate cost increases.

What’s next for U.S.-based importers of foreign goods?

In response to the ongoing uncertainty, some companies are exploring different strategies to absorb tariff increases. Businesses can either pass the cost to consumers by raising prices, absorb the cost internally, or attempt to negotiate with suppliers, though each approach carries risks and challenges, particularly in terms of demand and profitability.

In anticipation of tariff hikes, some companies — including Japanese businesses such as Sony and Suntory — have adopted stockpiling strategies to preempt increased costs. While stockpiling helps buffer against price hikes, it also ties up working capital, creating liquidity challenges.

Another strategy is supply chain diversification. For example, Mattel has been reducing its reliance on Chinese manufacturing, aiming to decrease its China-based supply chain footprint from 50% to 40% in 2025 and to 25% by 2027. However, moving supply chains is neither quick nor cheap, requiring significant planning and investment.

Financing strategies to offset tariff pressures

For companies navigating tariff-related disruptions, financing solutions provide a critical lifeline. Here are some of the options available to you:

Accounts Receivable Finance (ARF) allows businesses to receive immediate payment on invoices due in 30, 60, or 90+ days, providing cash flow without incurring debt.
Supply Chain Finance (SCF) enables buyers to extend payment terms while offering early payment to suppliers, optimizing working capital for both parties.
Flex Pay permits companies to pay suppliers on time or early while obtaining an additional 30, 60, or 90+ days to settle the payments, bolstering working capital or helping unlock early pay discounts.

Implementing these financing strategies can help businesses navigate the financial challenges posed by tariffs, ensuring operational continuity and competitiveness in a volatile trade environment.

By proactively adopting these measures, companies can better position themselves to handle the uncertainties and financial pressures resulting from current and future tariffs.

Preparing for an uncertain trade environment

With so many moving parts, close monitoring is essential. As tariff uncertainty continues to reshape global supply chains, businesses must remain agile, ensuring they have the right financial and operational strategies in place to mitigate risk and sustain profitability.

While stockpiling and diversifying supply chains are key strategies, financing solutions like ARF, SCF, and Flex Pay can provide the liquidity needed to remain competitive. The ability to pivot quickly in this volatile environment will determine who emerges stronger on the other side.

Raistone offers flexible financing solutions that can help businesses navigate the evolving tariff landscape. To connect with a financial expert, fill out this form or call 888-626-6593.

About the Author

Pete Kienlen, Sales Director at Raistone, leads efforts to develop tailored working capital solutions for clients. With over 15 years of experience in sales and finance, including more than a decade at American Express, Pete specializes in helping businesses optimize cash flow, across multiple industries including manufacturing, construction, retail, and logistics. Pete values Raistone’s agile environment, which enables quick, customized solutions, and is passionate about supporting small- and medium-sized businesses.