How to Tackle Troublesome Tariffs with 5 Savvy Working Capital Solutions

Higher tariffs could be on the way, shaking up supply chains and pushing up costs. Mexico, Canada, China, and Europe are all in the spotlight. If that happens, businesses will need cash flow strategies that keep operations running smoothly.

Where Costs Will Climb

• Automobiles– A 25% tariff would hit manufacturers hard, raising prices and squeezing margins.
• Gas – A tariff on Canadian crude could send U.S. fuel prices up by $1 per gallon.
• Produce– Mexican produce would cost more, affecting everything from avocados to tomatoes.
• Alcohol – Beer, tequila, and spirits could see price hikes, denting sales in bars and restaurants.

How to Keep Liquidity Flowing

1. Supply Chain Finance – Let suppliers get paid early while keeping cash in your business longer.
2. Dynamic Discounting – Pay early and lock in discounts to offset higher costs.
3. Receivables Finance – Turn outstanding invoices into fast cash to stay flexible.
4. Factoring – Sell receivables to bring in immediate funds.
5. Hybrid Working Capital Solutions – Use a mix of these tools to adjust as needed.

When trade policies shift, companies that move fast on working capital will have the advantage.