‍Panicking Isn’t a Strategy

Everyone is talking about tariffs right now, and brands around the world are feeling the pressure. Whether you're a manufacturer, a shipper, or a retailer, tariffs are likely to impact your bottom line and complicate supply chain decisions. The question many brands are asking is: What now?

With so many news stories swirling about trade wars and new tariffs on the horizon, it’s easy to panic. But before you make any knee-jerk decisions, take a deep breath and consider this: strategic patience is your greatest asset right now. Navigating tariffs doesn’t require immediate, drastic action. It requires a measured, long-term approach.

Pause Before You Pivot

Amidst turbulent trade policy, it’s crucial not to make decisions based on short-term pressure.. The truth is, tariffs aren’t intended to destroy your business — they’re a way to adjust trade imbalances between nations. While it’s understandable to want to react  immediately, being impulsive could end up causing more harm than good.

Instead, take a moment to reflect. The world is still in flux, and so are these policies. Tariffs might seem like a threat to your bottom line, but this is a long-term game. Yes, things are changing fast, but slow down and focus on how these changes affect you over the next year, five years, and beyond. Now is the time to think strategically and take stock of where you are right now. 

Reassess, Rethink, Realign

As tariffs impact costs, it’s a good time to review your supply chain. Start by asking yourself: Where are my products made? Do I have more than one manufacturer? What regions are my goods coming from? Am I in the right areas?

By taking a step back and fully understanding what you have in place today, you’ll be in a better position to make smarter, long-term decisions. This isn’t just about reacting to the current climate, it’s about preparing for what’s next.

Inventory Is Your Hidden Power

Inventory is a strategic asset, and managing it wisely right now can give your brand a serious competitive edge. If you’re stocked up while competitors are running low, you might be in the perfect position to maintain or even lower prices to capture more market share. The stock you already have in the U.S. is more than just product; it’s flexibility, leverage, and an opportunity to outmaneuver less-prepared competitors. Be mindful of inventory levels, particularly in key areas of the U.S. market. A well-managed inventory strategy, especially one that keeps you from running out of stock, will allow you to avoid price hikes and ensure your ability to stay competitive, even during these volatile times. 

But this is where the inventory game comes into play. The first brand to run out of inventory and be forced to source again—especially in today’s volatile environment—is likely to face higher costs and fewer options, putting them at a clear pricing disadvantage.

One important point to keep in mind: tariffs are applied to the manufacturing cost of an item—not the retail price. That means a 25% tariff doesn’t translate to a 25% increase in your shelf price. The actual impact on your margins may be smaller than it seems at first glance. So before making sweeping price changes, consider how much of that cost truly needs to be passed on. Your competitors likely aren’t raising prices by100%, and you don’t have to either. Strategic pricing starts with understanding where the pressure really is.

Reacting Less = Gaining More

Our advice? Take a beat and really observe what’s happening in the market before making any major pricing moves. Don’t feel like you need to raise prices right away just because tariffs are tightening margins. That might be the right call for some, but for the vast majority of brands, it’s smarter to take a more measured approach. In fact, this could be the right time to raise prices—consumers may be more accepting of it, or your competitors might increase their prices first, giving you the opportunity to stay lower and gain traction on marketplaces like Amazon. More transactions, better rank, and stronger positioning could follow. Every brand needs to understand where they sit competitively—observe and respond, not just react. If you're well-stocked, use that flexibility strategically. This moment is about being intentional. The brands that stay focused and play the long game will come out ahead.

Another consideration for brands right now is where you’re selling. With tariffs shifting the cost equation, some international markets—like the EU, UK, Germany, or Poland—may now be more attractive. If you haven’t explored these regions yet, it might be time to reevaluate. However, this doesn’t mean you should immediately start shipping product to Europe. Instead, use this opportunity to gather information: Where could you expand? What would it take logistically, financially, and operationally?

Strategy Over Stress

The reality is, navigating these complexities isn’t easy. The macroeconomic environment is tough, and going in it alone often costs more—what we call the “dumb tax.” Don’t rush into short-term fixes that could undermine your long-term strategy. If you’re not strategic, trying to solve today’s problems without considering the bigger picture could create a bullwhip effect that impacts your business far beyond just paying 100% tariffs for a short period of time. Take the time to gather information, evaluate your options, and understand where you can expand or adjust. Stay focused on your long-term goals and act strategically. The more information you gather today, the better prepared you’ll be for whatever comes next.

And remember, you’re not alone in this. Everyone is navigating this challenge at the same time, and there are opportunities to collaborate and find solutions. It’s complex, it’s hard, but there are experts out there who can help you cut through the confusion—without relying on hearsay or the wrong advice. Take a deep breath, gather your thoughts, and you’ll be better positioned to move forward with confidence. Good luck, and know that we’re all figuring this out together.

Learn how Pattern can help you navigate this challenging time. Get in touch with our team.

Rob Hahn

COO, Pattern