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While brands and retailers have known about the new tariff policies for several months now, the fallout is only just beginning to be understood. Any stockpiles of goods shipped to the US in the first quarter are likely now dwindling. As brands strategize production runs for 2026 and retail buyers contemplate orders for spring, tariffs will be a major factor.
Wholesale relationships increase in value for brands
Small and mid-size brands face the greatest risk for losing direct to consumer sales in the US market. Unable to absorb the costs of tariffs themselves, and lacking negotiating power with manufacturers, these brands will need to rely on retailers to bring their goods into the US to avoid price increases for consumers. With tighter budgets smaller brands will have reduced opportunities to promote themselves via social media and other marketing campaigns and will need strong retail partners to reach their target audiences.
Preparing for the unknown
There are no guaranteed outcomes on how or when tariffs will begin to make a meaningful impact on consumer spending. Brands need to take steps to optimize their business and maximize their potential for success. Five things that brands should be focusing on are pricing and cost strategy, inventory and demand planning, communication with retail partners, brand positioning, and tech stack and operational readiness.
Pricing + cost strategy
■ Recalculate landed costs to identify SKUs most impacted by tariffs
■ Implement strategic repricing and avoid across-the-board increases
■ Build in flexible pricing tiers or promotional pricing to retain key partners
Small and mid-size brands face the greatest risk for losing direct to consumer sales in the US market
Inventory + demand planning
■ Review sell-through data and identify topperforming vs. slow-moving SKUs
■ Reduce exposure to low-margin or tariff-heavy items
■ Highlight on-hand Available to Sell( ATS) inventor to retailers( especially pre-tariff stock)
Communication with retail partners
■ Be pro-active and transparent with retailers about tariff implications
■ Offer data-backed justifications for pricing shifts
■ Align on co-op marketing or shared cost strategies with top partners
Brand positioning
■ Double down on messaging on the brand story, values, and product quality
■ Ensure website and B2B marketing materials emphasize value, not just price
■ Consider region-specific collections, bundles, or exclusives for global growth
Tech stack + operational readiness
■ Audit your tech stack for real-time pricing, inventory, and order visibility
■ Ensure platforms can support localized catalogs, currencies, and fulfillment
■ Explore tools that automate customs classifications or tariff estimation
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