3 Steps to Navigating Tariffs
The measurable impact of import tariffs is beginning to ripple across the manufacturing and distribution landscape and financial markets. Alcoa dropped 13.3% to a seven-month low earlier this week — an indication of how aluminum tariffs are hurting, not helping, U.S. based aluminum manufacturers. Regardless of which industry you are in, chances are you will be impacted.
Besides the obvious price increases tariffs create, other hidden costs often come to light. In the case of Alcoa, Chief Executive Roy Harvey explains, “tariffs also distort the market by incentivizing the restart of aged, inefficient capacity, which contributed to the curtailments and closures in the first place.”
In a previous post, we offered guiding principles to help mitigate downside risks and exploit upside benefits. Now that tariffs are in effect — with more potentially on the way — it’s time to act swiftly. Use our 3 Steps to Navigating Tariffs Guide for specific implementation guidelines and ways to successfully manage these cost increases.
The Bottom Line
By being proactive and decisive, tariffs can be utilized as a way to remind customers about your value proposition and even be a way to expand margins.