Tariffs, Trade Wars, and Your Bottom Line: What Small Businesses and Nonprofits Should Be Doing Right Now
By Michael Jonas, JD, MBA | Narwhal Law & Business Strategy
Disclaimer: This post reflects information available as of April 16, 2025, and may not reflect subsequent policy changes or developments.
You might not follow international trade news—but trade policy is about to follow you.
With President Trump’s recent sweeping tariff announcements, including a blanket 10% tariff on all imported goods and targeted increases up to 50% for goods from over 50 countries, businesses and nonprofits across the U.S. are feeling the heat. And while some exemptions (like semiconductors, phones and laptops) may offer temporary relief, the broader message is clear: the global supply chain just got more expensive, more political, and more unpredictable.
So what does this mean for mission-driven organizations, small businesses, and community-serving nonprofits? Here’s what you need to know—and what you can do to stay resilient.
What’s Happening?
All imports are now subject to at least a 10% tariff.
Tariffs on Chinese goods have surged above 145%.
Computers, smartphones, and tablets are currently exempt—but even that could change with little notice.
Many common goods and materials—like furniture, industrial parts, food products, and clothing—now carry steep costs.
Trump’s trade approach is erratic and often announced without warning, making long-term planning a real challenge. His policies use tariffs not just for economic leverage, but as a tool of political messaging. That means exemptions may come and go quickly—and unpredictably.
Why This Matters to You
You don’t have to import goods directly to feel the impact. Here’s how the ripple effects might hit your organization:
Higher costs for goods and materials used in your programs, products, or services
Vendor price increases and delivery delays due to supply chain complications
Reduced flexibility if you rely on specific international suppliers or brands
Budget instability, especially for nonprofits with fixed funding or multi-year grants
Hesitant donors or customers, as economic uncertainty spreads
What Small Businesses and Nonprofits Should Be Doing Right Now
1. Audit Your Supply Chain
Even if you’re not importing directly, your vendors probably are. Ask where products come from and what percentage of their supply could be subject to tariffs. This will help you identify vulnerable areas.
2. Diversify Your Sources
Start building relationships with alternative vendors—especially those with domestic operations or more flexible contracts. Local suppliers might be more expensive upfront, but they come with less tariff volatility.
3. Review Your Contracts
Work with an attorney to add clauses to your contracts that account for unexpected cost increases due to tariffs or supply interruptions. Flexibility in pricing, delivery, and timelines is key right now.
4. Educate Your Stakeholders
Let customers, clients, or donors know what’s happening. A quick note in your newsletter or a sign in your store about why prices or timelines are changing can go a long way in building trust.
5. Revisit Your Budget and Cash Flow
If your operations rely heavily on goods that are now more expensive, update your financial projections. Look for opportunities to reallocate funds or pause non-essential purchases.
6. Join Forces
This is a moment to collaborate. Join business coalitions, nonprofit alliances, or trade groups advocating for tariff relief and clarity. Share information, resources, and strength!
What’s Next?
That’s hard to say. Exemptions—like the ones currently applied to phones and laptops—might be extended. Or they might not. Countries affected by new tariffs may retaliate. New rules could appear with a tweet.
That’s why the best strategy is to stay informed and stay adaptable. There’s no playbook for trade wars, but there are smart ways to prepare.
At Narwhal Law & Business Strategy, we’re working with small businesses and nonprofits across the country to review contracts, evaluate risk, and build resilient systems in uncertain times. If you’d like our support navigating the legal and strategic side of this shifting policy landscape, let’s talk.
Schedule a consultation or sign up for our newsletter, or both.
