How to Thrive in Turbulent Times: The Retail Small-Business Playbook for Managing Tariff Shocks

In today’s economic environment, the only certainty is uncertainty. That's doubly true for small businesses, which are often the first to feel the impact of economic shifts. Tariffs are a prime example. They can be introduced quickly, change frequently, and create ripple effects across supply chains, leaving these businesses scrambling to adapt.

According to the U.S. Chamber of Commerce, of the 242,000 importers in the U.S., 97 percent are small businesses with fewer than 500 employees. Together, they account for a third of the value of all U.S. imports. However, these businesses often lack the resources to absorb sudden unplanned cost increases. While the Chamber has proposed creating an automatic tariff exclusion for these companies, no formal process exists yet to make that relief a reality.

So, how can small businesses protect themselves in the meantime? As a global logistics company that works with 7,500 retail customers, including many small and midsized retailers, we can confidently say that the answer lies in building operational resilience.

Small retail businesses that use this moment to re-examine their day-to-day operations have the opportunity to eliminate inefficiencies and hidden costs, especially in shipping and logistics. Even small adjustments can yield big results over time. The good news is that these changes don’t require major investments, just a willingness to rethink established routines.

Here are seven things you can do right now:

1. Audit your logistics workflows. Review how orders are processed and shipped. Are you using partial loads when full truckloads are more cost effective? Are you paying for expedited shipping when better planning would avoid it? Have you considered freight consolidation to reduce costs?
2. Leverage technology to identify cost savings and streamline shipping. The latest transportation management systems (TMS) provide real-time visibility, automation and crucial data-driven insights. And digital shipper tools on the market not only help reduce manual tasks and uncover hidden inefficiencies, but also provide near real-time tools that help you make informed decisions on tariffs.
3. Level up your capabilities with AI. Thanks to artificial intelligence, tasks that used to take hours can now be completed in seconds (e.g., processing email orders, appointment scheduling or load tracking). The availability of such online tools helps level the playing field for small businesses without the need for huge investments in specialized staff or technology.
4. Diversify your sourcing strategy. Relying on a single supplier or region increases risk. Explore alternative vendors, including domestic and USMCA-qualified options from Mexico and Canada. For instance, if you’re importing from China, consider adding at least one other sourcing country (this is known as the “China+1” strategy) or even several (“China-plus-three-or-four”).
5. Optimize order quantities and lead times. Small tweaks in how and when you order can reduce shipping frequency and cost. Work with suppliers to find the sweet spot between inventory levels and delivery schedules. Taking advantage of soft demand periods in the freight market and using full truckloads instead of partials can yield significant savings.
6. Optimize packaging to control costs. Recent changes to the National Motor Freight Classification (NMFC) system emphasize the density of various types of less-than-truckload (LTL) freight. This makes right-sizing packaging more important than ever to control costs.
7. Stay informed and connected. Monitor trade policy updates from reliable sources like the U.S. Chamber of Commerce and industry associations. Join local business groups to access shared resources. And sign up for reports such as our Edge Report, a free monthly market update from our experts.

Turning Disruption Into Strength

Resilience is the result of deliberate choices made over time, prioritizing adaptability, efficiency and informed decision-making. While as a small business you can’t control tariff policy, you can take steps to minimize the impacts so you're prepared for changes as they come. This requires rethinking your approach to logistics, but it’s worth the effort. Resilient, flexible operations that take advantage of the latest technology will help strengthen your capacity to weather tariff turbulence as well as other disruptions down the road.

Mike Ryan is vice president of North American surface transportation at C.H. Robinson, the global leader in lean, AI-driven supply chains, managing 37 million shipments annually.