Small businesses and startups in Seattle are facing rising costs, unpredictable supply chains, and financial pressure due to tariffs on imported goods. From arcade owners to boutique retailers, entrepreneurs are feeling the effects firsthand.
Take Gary’s Place, a local waterfront arcade: equipment prices have already risen 10–15% due to tariffs. To shield customers from higher costs, owners Elyssa and Matt Cichy are absorbing the increases themselves and paying for additional storage to stockpile inventory.
“The uncertainty of not knowing what is going to happen next is keeping us up at night and making this so stressful,” Elyssa said.
Seattle businesses are finding it increasingly difficult to compete for container cargo and maintain consistent inventory, and the impact is particularly felt among startups with tight budgets.
Actionable Tips for Seattle Small Businesses
While tariffs are largely outside your control, there are steps you can take to mitigate their impact and protect your bottom line:
1. Diversify Your Suppliers
Don’t rely solely on one country or manufacturer. Look for alternative suppliers in countries not affected by tariffs or explore domestic options. Diversifying your supply chain reduces vulnerability to sudden cost spikes.
2. Stockpile Strategically
If certain products are essential for your business, consider stockpiling ahead of expected tariff increases. Be mindful of storage costs and shelf-life limitations—stockpiling works best for non-perishable items or products with predictable demand.
3. Reassess Pricing Strategies
Consider small, gradual price adjustments instead of absorbing all cost increases. Transparency with customers can help: explain that minor price adjustments are necessary due to rising import costs.
4. Explore Local Sourcing
Whenever possible, source materials and products locally. This not only reduces exposure to tariffs but can also shorten delivery times and strengthen community partnerships.
5. Evaluate Your Cash Flow
Tariffs can create sudden spikes in expenses. Work with a CPA or financial advisor to stress-test your cash flow, identify potential shortfalls, and ensure you have reserves to handle unexpected costs.
6. Leverage Tax and Duty Incentives
Some businesses may qualify for duty deferrals, exemptions, or credits depending on the type of product and tariff classification. A CPA familiar with import taxes can help you navigate these options.
7. Negotiate with Suppliers
Tariffs are only one part of your cost. Renegotiate contracts with suppliers to share costs or lock in current rates where possible. Bulk orders or longer-term agreements may reduce per-unit costs.
8. Adjust Inventory Management Practices
Use data to identify high-demand items and reduce orders on low-turnover products. Efficient inventory management minimizes carrying costs and avoids tying up cash unnecessarily.
9. Build Strong Customer Communication
Keep your customers informed about supply delays or minor price adjustments. Transparency fosters loyalty and helps maintain trust during uncertain times.
10. Monitor Tariff Changes Regularly
Trade policies can change quickly. Stay informed through business chambers, trade associations, and your CPA to ensure your strategies align with the latest developments.
Conclusion
Tariffs are creating real challenges for Seattle small businesses and startups, from higher costs to disrupted supply chains. However, proactive planning, financial foresight, and strategic supplier management can help mitigate the impact.
Partnering with a CPA or financial advisor who understands import-related taxes and trade regulations can give you a competitive edge; helping you manage cash flow, reduce risk, and maintain profitability during uncertain times.