Tariffize – Adapting Your Business to a Policy of Tariffs — Management One Inventory Planning

Retailers crave certainty, but the best you can get is probability. And right now, the probability of tariffs affecting your business is no longer theoretical—it’s reality. As of today, tariffs on Canadian and Mexican imports under Trump’s policy have officially taken effect, bringing another layer of cost pressure.

The likelihood of these tariffs increasing prices? Also, yes. That’s disappointing, considering wholesale prices have largely stabilized over the past year. Supply chains are back to normal, transportation costs have settled, and businesses were finally seeing some relief.

But now, the bigger question is: Can your customers absorb another price increase? Since March 2022, footwear and apparel prices have risen between 21% and 23%. If your business is flat or growing by 6-8%, most of that is due to price increases—not higher unit sales. However, if you’re seeing double-digit growth, you’re expanding—whether by selling more units, offering premium products, or finding new bestsellers.

How do you manage a business in a world of policy-driven price shifts? Fortunately, it’s not just guesswork, it’s about adapting strategically.