Pros & Cons of Tariffs:
A Retailer’s Guide to Margins Lost and Markets Missed

One policy shift. One unexpected announcement. One container is stuck at customs, and suddenly, your margins are gone.

This is the reality for thousands of retailers navigating a global trade landscape disrupted by unpredictable tariffs. While some champion tariffs as a protective shield for domestic markets, the vast majority of retailers—especially in furniture, home décor, and garden categories—feel the pressure where it hurts most: their margins, their timing, and their customer trust.

So why do some still welcome them? And what does every buyer need to know to avoid falling into the tariff trap?

The Hidden Costs of Tariffs That Most Retailers Underestimate

Tariffs aren’t just a surcharge—they’re a domino effect.
When applied to imported furniture, décor, and seasonal stock, they can inflate landed costs by 10–30%.

For businesses operating on tight margins or dealing with large-volume SKUs, that can make entire categories unviable overnight.

But the damage goes deeper:

Unpredictable Pricing: Tariff changes create volatility, making it nearly impossible to plan pricing structures across SKUs.
Disrupted Supply Chains: Customs slowdowns and documentation changes often lead to shipment delays and warehousing issues.
Shrinkage in Competitive Edge: When your costs go up but competitors hold steady due to smarter procurement, you’re losing share, not gaining it.

A recent report by the National Retail Federation found that over 70% of U.S. retailers experienced delays, higher freight costs, or margin erosion as a direct result of tariff spikes between 2018–2022.

According to Deloitte, 58% of retailers who supported tariffs in theory had to shift their procurement strategy within a single season due to unforeseen operational challenges.

What Most Retailers Experience

Let’s look at what happens when tariffs go up:

Vendor Fallout: Asian manufacturers may raise MOQs or renegotiate contracts the moment tariffs are introduced, shifting the burden to you.
Freight Complications: Tariffs often coincide with capacity shortages or routing changes, leading to cost increases beyond the duty itself.
Cash Flow Crunch: When deposits increase to offset tariff-related risks, retailers face tighter cash flow and delayed ROI.
Seasonal Program Failure: If products arrive late or cost too much to land, you’ve missed the season. And in retail, missing the window means missing the market.

And here’s the worst part:

The financial impact doesn’t always show up right away. It sneaks into markdowns, overstocks, and lost customers who quietly shift to competitors

Global Base: The Partner Retailers Count On When Tariffs Hit

At Global Base, we help retailers avoid becoming tariff casualties. Whether you’re importing from China, India, Indonesia, or Vietnam, we ensure your procurement strategy is resilient, even in volatile policy environments.

Here’s how we do it:

We’re not just a vendor—we’re your operational safety net.

Country Diversification: Strong vendor bases across India, Vietnam, Indonesia, and China allow clients to pivot when tariffs hit one region.
Duty Impact Modeling: We simulate landed cost shifts and advise which SKUs to relocate, reengineer, or reorder based on evolving policy risks.
Flexible MOQs & Split Shipments: So you can adjust volume and distribution strategy mid-cycle without being overexposed.
Shipment-Level QC & Compliance: Ensuring you never pay tariffs on faulty, non-compliant, or misdeclared stock.

How Global Base Helps Retailers Navigate Both Sides

Whether you see tariffs as a threat or an opportunity, preparedness is everything. At Global Base, we work with retailers across 51+ countries, helping them manage procurement complexity and adjust to global shifts, tariffs included.

Our support includes:

Country-diversified vendor networks across China, India, Vietnam, and Indonesia
Tariff-sensitive product mapping, with alternate SKU options and comparative landed cost planning
Flexible production and MOQ terms, ensuring you’re not locked into one supplier or region
Real-time shipment QC and compliance to avoid secondary delays or rejections

While some retailers were scrambling to renegotiate contracts mid-season, our clients had already pivoted, adjusting supplier allocations, updating pricing strategies, and keeping

How Global Base Helps Retailers Navigate Both Sides

Tariffs don’t give warnings. They land fast, they ripple through supply chains, and they crush those who don’t have a flexible strategy in place.

Email us at [email protected] to explore how we help you prepare before the next policy shift hits your margin, your timing, and your customer experience.

Because in global trade—you don’t win by guessing. You win by planning.

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