If you’re a CPG founder, you’re not just managing a brand, you’re managing a chain reaction. From sourcing raw materials to shipping finished goods, your supply chain is the lifeline of your business.
Tariffs hit harder than most founders expect. They don’t just raise costs at the port. They apply pressure across your entire supply chain. From sourcing to shipping to shelving, every link gets tighter and your margins feel it fast.
So here’s what you should know.
Sourcing: Tariffs Start at the Root
When tariffs go up, your raw materials cost more before your product even exists. Whether it’s packaging from China, ingredients from India, or components from Mexico, tariffs quietly raise the baseline cost of doing business.
Founder insight: Switching suppliers or sourcing closer to home might help, but those moves usually mean bigger minimums and longer lead times. That means more cash tied up earlier in the process.
Manufacturing: Margins Get Squeezed
Tariffs can add friction whether you’re manufacturing domestically or abroad. Raw material cost hikes shrink your margin. If you’re importing finished goods, tariffs might hit twice, once on inputs, again on the final product.
Smart move: You may need to negotiate better terms, increase order sizes for better unit economics, or shift production to tariff-free zones. But those moves often require more working capital upfront which is where flexible funding makes a difference.
Shipping & Freight: The Multiplier Effect
You’re not just paying more for your goods—you’re paying more to move them. Higher declared value = higher freight insurance, duties, and sometimes even freight costs. Tariffs are the match; shipping delays and surcharges are the fuel.
Founder takeaway: Freight cost spikes, on top of tariffs, can throw your forecasts out of whack. Lock in rates early where possible and consider building freight buffers into your funding model.
Warehousing: Higher Stakes, More Risk
If your inventory now costs more to produce, store, and insure, sitting on excess stock becomes expensive fast. And if a retailer’s PO shifts or sales slow down? That’s your cash flow stuck on a shelf.
Solution: Align your inventory financing with your sales cycle to reduce risk. With Kickfurther, you don’t pay until your product sells, giving you breathing room even when macro forces make timing unpredictable.
Distribution & Retail: Pass It On Or Don’t
Once tariffs hike your COGS, you’re stuck with two choices: raise prices or take the margin hit. Neither one is great. Price hikes could slow sell-through. Absorbing costs can stall your growth engine.
Better approach: Plan your tariff strategy before you’re forced to choose. Forecast scenarios with and without tariff impact and build in agility with a funding partner who understands your real costs and timelines.
Tariffs Don’t Have to Kill Growth
You built your brand to scale. Don’t let macroeconomic noise put you on defense. Kickfurther helps CPG founders:
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Fund up to 100% of inventory costs upfront
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Repay after sales, not before
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Scale without taking on debt or giving up equity
We know cash flow is king and that’s exactly why we built Kickfurther. So you can stop stressing over tariff hikes and start focusing on what actually drives growth: product, marketing, team, and customer love.
Ready to Take Control?
Tariffs are unpredictable, but they don’t have to derail your growth. The most resilient CPG brands plan ahead, fund smart, and stay flexible. That’s exactly why we built Kickfurther.
Let’s keep your supply chain moving and your margins protected.
→ Ready to get funded? Apply here
