Tariff Anxiety? Learn How to Reduce the Impact and Stay Compliant

A few months ago, most wholesalers tried to stay ahead of demand.

Now?
They’re trying to stay ahead of tariffs.

The rules are changing faster than ever. Tariff hikes. Political brinkmanship. Confusing classifications. It’s become a high-stakes guessing game for importers and wholesalers, with real dollars on the line.

That’s precisely why WizCommerce conducted this webinar, bringing on JJ Jhalmason, CEO of The Gerson Companies and founder of First Sale Tariffs, as a speaker, for a strategy-packed webinar.

What followed was a masterclass in how businesses can stay profitable, even when costs rise and policies shift beneath their feet.

 A Story That’s All Too Familiar

Imagine this: you’ve negotiated the best price from your supplier. You’ve done your forecasting. Your buyers are locked in.

Then a new tariff hits.
Your landed cost spikes by 20%.
Your margin disappears overnight.

JJ, who’s been in supply chain and import strategy for decades, remarked:

“This is what we’re seeing every day. And it’s not just about China anymore. It’s Canada. Mexico. Europe. Wine. Champagne. It’s unpredictable—and it’s putting real pressure on businesses.”

But here’s the truth he shared with the audience:

“Tariffs are just taxes. And taxes can be managed—with the right playbook.”

Why Tariffs Feel So Chaotic (But Don’t Have to Be)

Let’s break it down:

• • • A tariff is a tax paid on imported goods
    • The amount depends on the country of origin and the product’s classification (HTS code)
    • Tariffs have been increasingly used as political tools, and that means unpredictability

Right now, all eyes are on April 2—what some are calling Liberation Day—when the U.S. is expected to respond with reciprocal tariffs. What happens next could shift the global trade map again.

So, what can a business do?

The Hard Truth: Tariffs Hurt Your Margins

JJ laid it out clearly with a simple example:

You buy a product for $100.
With a 20% duty, your landed cost is now $120.
If you keep your prices the same, you lose $20 of margin.

That might not seem like much… until you multiply it across thousands of units.

And some product categories? They’re now facing 80% tariffs.

Most companies respond in one of three ways:

1. 1. 1. Absorb the cost (and lose margin)
      2. Raise prices (and risk losing customers)
      3. Get strategic (and take back control)

Guess which one this webinar was about?

 Four Strategies to Take Back Control

Watch the full webinar

1. Leverage Trade Compliance Tools

This might sound boring. It’s not. It’s where the hidden savings live.

• First Sale Declaration

If you buy through a trading company, you’re likely paying duty on the marked-up price. But U.S. customs allows you to declare the original factory price instead.
Result? Lower declared value = lower duty paid.

📉 $100 price → factory paid $80 → you pay duty on $80, not $100.

• Duty Drawbacks

If you re-export goods or receive damaged items, you might be able to reclaim duties paid. (Though rules are changing—watch for updates on April 2.)

• Audit Your HTS Codes

JJ shared the “Paul Revere Rule”:
A decorative lantern gets a high tariff. But make the handle big enough—and it becomes “functional.” Different classification. Lower duty.

This isn’t gaming the system. It’s understanding it better than your competition.

 2. Rethink Your Go-to-Market Approach

Now it’s about product design, material choices, and customer conversations.

• • • Add a seasonal icon (like a snowman) and you might qualify as “holiday décor”
    • Swap out metal for resin, and your product may fall under a lower tariff code
    • But: don’t degrade quality just to save on duties. As JJ put it, “Your brand is forever. Tariffs are temporary.”

3. Explore Supply Base Adjustments

Yes, moving production out of China sounds like a solution.

But it’s rarely simple or fast.

• • • It can take years to build reliable new supply chains.
    • Emerging regions may have longer lead times
    • And with politics changing daily, what’s safe today might be in the crosshairs tomorrow

Still, it’s worth the conversation if your factory has operations in Vietnam or Cambodia.

 4. Consider Your Own Supply Chain Footprint

Could “Made in America” be part of the long game?

JJ’s take: “Maybe. But be careful. Manufacturing is an entirely different beast from importing and design.”

It’s not for everyone, but for companies planning 2+ years ahead, domestic production could offer stability.

 Okay, But What Do I Tell My Buyers?

We asked JJ: What do you do when your customers push back?

His answer was refreshingly honest:

“You open the kimono. You show them what you’re dealing with. You let them see the math.”

Retailers today are savvier than ever. They understand margin pressure. But they also expect transparency. The businesses that win long-term are the ones that build trust, not just price lists.

FAQs From the Audience

 JJ’s Final Advice

“It’s just math. Do the math. Know your numbers. And don’t panic every time the news changes.”

• • • Understand your true landed cost
    • Look for first-sale opportunities
    • Audit your code
    • Redesign with purpose
    • Communicate clearly with both vendors and buyers

The Final Word: You’re Not Powerless

Tariffs are frustrating, yes. But you can fight back with smart, legal strategies that protect your bottom line.

Start with the tools you already have. Ask better questions. Partner with people who are in the trenches with you. And remember: it’s not about avoiding change—it’s about leading through it.

Need help getting started?

Interested in knowing more? Watch the full webinar here.

Schedule time with JJ from First Sale Tariffs

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