Recent tariff changes have created a wave of uncertainty across industries that rely on imported goods and global supply chains. While the long-term impacts remain to be seen, businesses—particularly small- to mid-size manufacturers—are already feeling the pressure.
We get it. We’re feeling the same uncertainty and nervousness as lots of businesses. The up and down and back and forth about whether tariffs will actually be implemented, and if so, how long they will last, is confusing. So we got several folks from our internal team together today to talk about what we’re seeing and how we can help our clients through these uncertain times.
Several themes emerged around sentiment, behavior, and strategic response to the tariff situation. Here’s what we’re seeing, a few recommendations on how to weather the storm, and ideas about how businesses can adapt.
General Sentiment: Caution, Confusion, and Concern
From our observations with clients and in general in the news, businesses are experiencing a mix of nervousness and hesitation. While some clients are outwardly cautious, others are shifting into a “wait and see” mode. Many are not openly discussing the tariffs, but signs—like paused budgets and initiatives, and sometimes lack of communication about future plans—suggest that behind-the-scenes strategizing is already happening.
Three core emotional responses surfaced in our conversations:
- Nervousness – Driven by unpredictability in pricing and supply chain stability, especially among businesses with international suppliers
- Confusion – Due to unclear rollout details, inconsistent messaging, and day-to-day changes around the scope and enforcement of tariffs
- Denial or Disbelief – Some are hopeful the tariffs won’t stick or will be reversed before they take full effect.
Market Behavior: Pullback on Spending and Project Delays
We’ve noticed that clients are not necessarily spending less overall, but they are being more selective and hesitant to commit to long-term contracts or new initiatives. Marketing efforts, particularly those that would require increased budget or new investment, have slowed or stopped entirely in some cases.
Rather than investing in innovation or expansion, many businesses appear to be:
- Stockpiling critical inventory
- Reassessing supplier networks
- Tightening hiring or pausing workforce changes
- Focusing on operational efficiencies
Our Strategic Recommendations: What Businesses Should and Shouldn’t Do
In times like this, we’re encouraging our clients to focus on what they can control—and to avoid reactive, fear-driven decisions. Some practical suggestions:
Do:
- Diversify suppliers and sourcing where possible, especially by identifying domestic options.
- Build inventory strategically on goods that may be affected by tariffs.
- Reevaluate pricing models to reflect changing costs while maintaining transparency with customers.
- Invest in core operations, including digital infrastructure and customer experience improvements.
- Communicate clearly and honestly with stakeholders, including staff, customers, and partners.
- Double down on the things that are working well for your business. Rely on data and leveraging what you know to be true today to inform decisions about where to invest.
- Reach out to government officials and let it be known that companies are fighting for what’s best for the consumer.
Don’t:
- Panic—no one knows the exact effects of the tariffs and how long they will last.
- Put all your eggs in one basket—risk mitigation through diversification is key.
- Avoid having active conversations with your partners—they can help you prioritize initiatives and brainstorm creative paths forward.
- Delay all decision-making—paralysis is just as costly as a poor decision.
- Rely on external relief—whether legal or political, solutions may take time and are not guaranteed.
Leverage Your Digital Presence: Your Website Is a Strategic Asset
Digital platforms can be a stabilizing force during times of economic volatility. Beyond enabling new revenue streams, a strong digital presence allows businesses to:
- Enhance transparency around delays, pricing changes, and sourcing shifts.
- Reach new markets through digital advertising, SEO, and user experience enhancements.
- Showcase innovation and build trust with users looking for reliable partners.
- Maintain engagement with loyal customers even when physical supply chains are constrained.
Now is the time to optimize eCommerce platforms, invest in data analysis, and use content to reinforce brand values and customer loyalty.
What Human Element Pledges To Do: Be the Calm in the Storm
At Human Element, we always try to be an extension of our clients’ teams. Your success is our success. To that end, our goal is to remain steady, communicative, and proactive. That means:
- We can help clients stay focused on what’s working (and doubling down on those wins)
- We’ll identify new opportunities in areas like digital commerce and customer retention
- We act as an extension of our clients’ teams—not just as vendors, but as strategic allies
Partnerships rooted in trust and transparency matter more than ever. We encourage businesses not to retreat from collaboration, but to lean into it.
Final Thoughts: Planning Amid Uncertainty
This isn’t the first period of economic disruption, and it won’t be the last. We know that doesn’t feel good. But what we’ve learned from past challenges is that businesses who invest in adaptability and communication fare better long term.
Even as the landscape remains uncertain, there is power and maybe some comfort in having a plan—however flexible—and in maintaining the tools, relationships, and data to guide your next move. The best path forward may not be fully clear, but businesses don’t have to navigate it alone.
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