Particle.news
Download on the App Store
3 ARTICLES
·
3w ago

U.S. Businesses Adjust to Trump’s Tariffs with Cost-Cutting Strategies

Faced with rising costs from sweeping tariffs, companies are reworking products, altering sourcing, and preparing for higher consumer prices.

Steve Rad, CEO of toy maker Abacus Brands Inc., which designs science kits and other educational toys for older children, shows a new, improved matte box, left, that will replace its black mold plastic material packaging insert with an improved cardboard material to help offset the costs of future tariffs in El Segundo, Calif., on Monday, March 31, 2025. (AP Photo/Damian Dovarganes)
Steve Rad, CEO of toy maker Abacus Brands Inc., which designs science kits and other educational toys for older children, shows a newly improved matte box, left, that will replace its black plastic mold packaging insert, seen right, with an improved cardboard material to help offset the costs of future tariffs in El Segundo, Calif., on Monday, March 31, 2025. (AP Photo/Damian Dovarganes)
Steve Rad, CEO of toy maker Abacus Brands Inc., which designs science kits and other educational toys for older children, shows a new improved matte box, left, that will replace its black mold plastic material packaging insert with an improved cardboard material to help offset the costs of future tariffs in El Segundo, Calif., on Monday, March 31, 2025. (AP Photo/Damian Dovarganes)
Steve Rad, CEO of toy maker Abacus Brands Inc., which designs science kits and other educational toys for older children, shows a newly designed matte box, left, compared with the old more expensive glossy box, right, that will help offset the costs of future tariffs in El Segundo, Calif., on Monday, March 31, 2025. (AP Photo/Damian Dovarganes)

Overview

  • President Trump’s tariffs, including a 20% tax on Chinese goods and 25% on steel, aluminum, and automobiles, continue to disrupt global supply chains and trade relationships.
  • Companies are adopting cost-saving measures such as reducing packaging, using cheaper materials, and reworking product designs to manage tariff-related expenses.
  • Retailers like TJX, Wayfair, and Temu are exploring sourcing alternatives and passing some costs to consumers, with shrinkflation expected to reemerge as a strategy.
  • Businesses are increasingly considering relocating production to regions like Southeast Asia, South America, and India to mitigate tariff impacts and geopolitical risks.
  • Economic uncertainty persists as businesses focus on short-term adjustments while monitoring potential new tariffs and retaliatory measures from trade partners.