As businesses across Kansas adjust to the newly announced U.S. tariff increases—affecting imports like steel, aluminum, and certain manufactured goods from China and other countries—many are wondering what these developments mean for their operations and financial planning. We understand the uncertainty these trade policy shifts create, especially for small and mid-sized businesses that may not have dedicated trade compliance teams.
While not every business will feel the impact equally, industries like manufacturing, construction, retail, and agriculture may experience cost pressures as supply chains adjust. Even if you don’t import directly, higher costs upstream could still affect your pricing, sourcing, and operations.
Here are six practical strategies to help Kansas business owners navigate the road ahead.
What Kansas businesses need to know.
The new tariff structure affects imports broadly, with different rates applying to various countries and products. While policy discussions continue and adjustments are likely, businesses need practical strategies to adapt now.
Six practical steps to protect your business.
1. Assess your actual exposure
Before making any operational changes, it’s important to understand how tariffs directly and indirectly affect your business. We recommend working with your financial advisor to:
Identify all countries and regions in your supply chain (including indirect suppliers)
Calculate potential cost increases across multiple scenarios
Evaluate how tariffs may influence your competition and customer demand
A clear understanding of where and how your business is exposed helps guide smart, timely decisions.
2. Review your pricing strategy thoughtfully
Passing costs to customers can seem like the obvious response, but it’s not always sustainable, especially in competitive or price-sensitive markets. Take time to:
Review your competitive positioning
Understand customer price sensitivity
Consider phased or selective price increases
Communicate changes clearly and transparently
Being proactive and intentional about pricing decisions can help protect customer relationships while maintaining profitability.
3. Investigate Foreign Trade Zones
For businesses importing significant volumes of affected goods, Foreign Trade Zones (FTZs) may provide opportunities to defer or reduce tariffs:
Goods can be imported into designated zones without immediate tariff payments
Manufacturing, assembly, or processing can occur within the zone without added tariffs
Tariffs are paid only when goods enter the U.S. market (or not at all for exports)
FTZs are often most practical for larger importers or manufacturers near these designated zones. If applicable, this may be worth discussing with your financial and legal advisors.
4. Strengthen operational efficiency
Rising costs can be a powerful prompt to look for efficiencies across your operations. Consider opportunities to:
Evaluate alternative suppliers, including those in countries with lower tariffs
Renegotiate supplier and vendor agreements
Invest in technologies that improve process efficiency or reduce administrative costs
Improve collaboration between procurement, finance, and tax functions
Small changes across departments can add up to meaningful savings.
5. Maximize tax planning opportunities
Tax planning becomes even more critical during periods of rising costs. Businesses may benefit from strategies such as:
Utilizing Section 179 expensing for eligible equipment purchases
Exploring available manufacturing or research and development credits
Reviewing inventory accounting methods to better align with current costs
Taking advantage of state-level tax incentives for maintaining or creating Kansas jobs
Tax laws can change, so it’s important to review available credits and deductions under current regulations with your advisor.
6. Upgrade compliance processes
With increased trade regulations often comes heightened scrutiny. Businesses should:
Strengthen documentation for country-of-origin certification
Verify suppliers’ tariff classifications
Implement systems or tools to track compliance requirements
Build relationships with customs brokers who understand their industry
Strong compliance practices can help avoid penalties and disruptions.
How CGP Group can help.
Our team helps Kansas businesses translate complex trade policies into practical action plans. We can:
- Conduct a tariff impact assessment specific to your business
- Develop cost management strategies that protect your profits
- Identify tax planning opportunities to offset increased costs
- Create compliance frameworks that reduce regulatory risk
Tariff uncertainty doesn’t have to derail your business goals. With proactive planning and expert guidance, you can navigate these changes while keeping your focus on growth and customer service.
Contact us today to discuss how these tariff changes specifically affect your business.
