The Ripple Effect
How Tariffs and Trade Policies
Influence Local Business
Earlier this year, uncertainty about tariffs dominated the headlines, prompting many local businesses to proceed with caution. Throughout the spring, questions lingered about how these tariffs would ultimately affect the marketplace. Over time, however, it became clear that the primary goal was to encourage trade partners to negotiate new agreements— a shift that has gradually brought more stability and reassurance to local businesses.
Today, companies have a clearer understanding of the tax landscape compared to just a few months ago. This increased clarity has contributed to a steadier business environment.“ Businesses saw in the‘ Big Beautiful Bill’ that provisions enacted several years ago would become permanent, and that gave them a stronger basis for planning and managing expenses,” said Draper Stanford, Senior Vice President and Regions Commercial Banking Relationship Manager.
“ We’ ve seen time and again, especially since 2020: Businesses have gotten really good at handling uncertainty. They are strong. They are resilient.”- Draper Stanford
What Are Tariffs?
A tariff is a tax or duty imposed by a government on imported goods. The importer pays this fee when products cross the border.
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Tariffs in Action: How Costs Are Playing Out Locally
As a result of recent tariffs, local businesses are thinking more strategically— reassessing supply chains, exploring new partnerships and seeking ways to strengthen their competitive edge. While tariffs have introduced some cost pressures, most local businesses are adapting well, according to Stanford.
“ We’ ve had some companies report single-digit increases, and the impact has been somewhat offset by stabilization in other line items like freight and insurance premiums,” Stanford said.“ Business balance sheets are generally healthy, which allowed for increased inventory purchases ahead of tariff impacts on costs.”
Supply chains, once a major source of concern, have also stabilized.“ I wouldn’ t describe what we’ ve seen so far as wholesale changes in terms of new suppliers or upending timelines,” Stanford said.“ Some suppliers use tariff discussions as reasons for price increases, but generally, they are only taking relatively small increases so far. Local companies are evaluating options, and some are stockpiling inventory at current prices. Multi-national companies are monitoring closely and will adjust global supply chains as needed, including onshoring production in the U. S. when feasible.”
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