Tariffs Turn Up The Heat

Teeto Shirajee, NCASEF Vice Chair

As small business owners, we’re no strangers to economic pressures—whether it’s rising labor costs, shrinking margins, or supply chain disruptions. But President Trump’s recent implementation of extensive tariffs adds yet another layer of concern that could hit our stores where it hurts: the cost and availability of products. If these tariffs continue for an extended period of time, the impact on our operations could be significant.

Many of the items we stock—electronics, prepared foods, and even some popular snack and beverage brands—are imported from countries now subject to increased tariffs. This means the cost to stock our shelves will soon go up. That puts us in a tough spot. Do we pass those costs onto customers and risk pushing them away? Or do we absorb them and watch our margins erode? Either way, our ability to remain competitive and profitable takes a hit.

Tariffs create ripple effects in the supply chain. When our suppliers face higher costs, they may cut corners, delay shipments, or even stop offering certain products altogether. That can lead to bare shelves and frustrated customers who may decide to shop elsewhere. And when everyday staples become more expensive, customers—especially those on tight budgets—might change their buying habits. They could reduce their purchases, switch to cheaper alternatives, or avoid our stores entirely. These behavioral shifts may reduce our traffic and hurt overall sales.

For many of us, sourcing product has already become more complicated in recent years. These tariffs could make it even harder to secure items at a competitive price. We may soon have to search for new suppliers or reconsider what products we offer. The flexibility to pivot quickly will be key, so we must work closely with our franchisor to ensure our brand remains top-of-mind with customers.

To protect our stores, we need to be proactive. Reviewing our pricing models is one place to start—adjusting prices carefully to maintain customer loyalty while recovering some of the added costs. Another option is supplier diversification. If we can find alternatives that aren’t affected by tariffs—either local sources or imports from non-penalized countries—we may be able to soften the blow. Promoting local or U.S.-made goods can also be a smart move, especially as customers increasingly value “Made in America” products.

Inventory management will become more important now. We should consider stocking up on bestsellers before manufacturer price hikes take effect, and keep a closer eye on sales trends to avoid over-ordering. Meanwhile, transparent communication with customers can go a long way. Explaining why prices may increase—without placing blame—helps maintain trust and positions us as honest, community-oriented business owners.

Finally, cutting operational costs where possible could help offset some of the financial pressure. Whether that’s re-evaluating labor schedules, reducing energy use, or leveraging technology to streamline operations, every dollar saved can make a difference.

In times like these, we must stay alert, informed, and united. Tariff policy is a moving target, and its impact on our business is real. By sharing information, supporting one another, and pushing for more flexibility from 7-Eleven, Inc., we can better manage the challenges ahead. We’ve weathered tough conditions before, and with the right strategies in place, we’ll weather this one, too.