Tariff Reversals: When (and If) SMBs Will See Relief

New research shows how strained small businesses still are: 46% say inflation is their biggest challenge, and 75% say rising prices significantly impacted their business last year. Even more concerning, 34% say the cost of goods is their biggest barrier to growth, and 33% say high costs have stopped them from entering new markets. Tariffs contributed to this pressure—yet even if reversed, vendors may not reduce their prices.

Why? Because many suppliers have already baked tariff-era increases into their long-term pricing and are hesitant to lower them. After years of supply-chain instability, they may keep their prices high to hedge against future disruptions or preserve their margins in an inflationary environment.

This means SMBs must plan for a future where tariff relief doesn’t necessarily equal price relief—and act strategically to renegotiate, document past increases, and protect their bottom line.

Why Vendors May Not Lower Prices—even if Tariffs Disappear

1. Tariff-era price increases are now “normal” to many suppliers

When tariffs raised costs, many vendors increased their prices not just to cover the difference, but to buffer against uncertainty. Now, those higher prices are embedded into new catalog rates, contracts, and cost structures.

2. Inflation is already pushing prices up—even without tariffs

Rising material, labor, and shipping costs are up even outside of tariffs. Many suppliers argue that even without tariffs, they can’t reduce prices because inflation has overtaken tariff-related costs.

This is why SMBs shouldn’t expect immediate price drops. Relief—if it comes—may be slow, partial, or nonexistent.

3. Your vendor contracts may lock in higher costs

Many small businesses signed agreements during tariff spikes. Some have automatic renewal clauses at the same (or higher) pricing. Others require advance notice to renegotiate or cancel.

Even if tariff costs drop today, you may still be bound by old rates tomorrow.

Questions SMBs Should Be Asking About Tariff Relief

Before planning around lower prices, take time to review the real impact on your business:

• Did we absorb tariff costs or pass them on? Where did margins tighten—and will customers expect rollbacks?
• Are vendor contracts still priced at high-tariff rates? Do they auto-renew, and do we need to renegotiate or give notice?
• Can we renegotiate pricing under new tariff conditions? What leverage or documentation supports a price review?
• What if prices stay high even without tariffs? Should we shift suppliers, inventory, or pricing?
• Should we revisit our pricing strategy overall? Are pricing, margins, and communication aligned with costs?

Asking these questions now prevents you from budgeting based on hoped-for cost reductions that may never materialize.

What to Do Next

To protect your margins and prepare your business for an uncertain pricing landscape:

1. Review all vendor agreements for renewal dates and pricing clauses. Identify which contracts can be renegotiated—or need notice to avoid auto-renewal at higher rates.
2. Document every cost increase tied to tariff or supply-chain issues. This strengthens your position in negotiations and helps you justify pricing adjustments.
3. Start conversations with suppliers about future pricing. Ask about their plans if tariffs unwind. Some may offer partial reductions or alternative terms if you initiate the discussion.
4. Use Rocket Copilot to review contract language and flag renegotiation opportunities. And if you’re facing a major cost crunch or dispute, connect with a Legal Pro for more information.

Tariff relief may help—but it won’t fix every cost challenge. By asking the right questions and preparing now, you can stay ahead of rising expenses and protect your margins in the year ahead.