Should tariff uncertainty change the size of your next order?
Would you buy more now to reduce exposure to a possible future increase, or keep orders smaller until the picture is clearer?
All questionsTariffs
8 replies
- I'd model both outcomes without treating a rumored increase as settled. Extra stock still costs money if the policy never arrives or the product sells more slowly.
- Check which date actually controls the treatment with the broker. Ordering today doesn't necessarily lock the duty rate for a shipment arriving later.
- For predictable fast movers, a modest buffer may be reasonable. For seasonal goods, the downside of being left with stock deserves more weight.
- Ask finance to include working capital and storage in the comparison. The purchase-price saving isn't the entire result.
- I'd avoid making one large bet across every SKU. Different products have different margins, demand and policy exposure.
- Supplier capacity matters as well. Pulling a large order forward can simply move the delay into production.
- Set a decision date and use confirmed official information available then. Constantly reopening the order after every headline can become its own operational problem.
- If you do increase the order, write down the exit plan for excess stock. That forces the team to think beyond the attractive best-case calculation.
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