As new and renewed tariffs reshape costs and supply chains, television host and investor Marcus Lemonis outlined how executives are adjusting and what he calls a “three-piece strategy” to stay ahead. Speaking about business reactions to President Donald Trump’s tariff moves, he framed a simple playbook for companies facing uncertainty.
The discussion arrived as leaders weigh pricing, sourcing, and hiring plans. It also comes as data show tariff costs moving through to businesses and households. The guidance targets firms large and small that must plan for uneven demand and higher input costs.
Tariffs and their ripple effects
Since 2018, tariff policy has touched industries from steel to retail. The United States imposed duties of 25 percent on many steel imports and 10 percent on aluminum. It later added rounds of tariffs on hundreds of billions of dollars of goods from China.
Studies by the Federal Reserve Bank of New York and academic researchers found most tariff costs were passed through to U.S. importers and, in many cases, to consumers. A 2019 analysis estimated the annual cost to the typical household at several hundred dollars. Manufacturing surveys during that period flagged higher input prices, supply delays, and shifting capital plans.
Executives also faced a stop‑start pattern as exemptions, lists, and deadlines moved. That forced many to build buffer inventory, renegotiate contracts, or rethink sourcing in Southeast Asia, Mexico, and at home.
How leaders are responding
Lemonis said executives are not waiting for clarity. They are acting in tight cycles and running parallel plans. Price, volume, and terms are being tested in shorter windows to reduce risk.
- Some are diversifying suppliers to manage single‑country exposure.
- Many are reviewing contracts for pass‑through clauses and surge pricing.
- Finance teams are modeling cash needs under slower receivables and higher inventory.
- Sales teams are segmenting customers to protect loyalty while adjusting prices.
These moves try to protect margins without losing market share. They also help firms pivot if policy changes or supply routes close again.
Inside the ‘three-piece strategy’
“Three-piece strategy.”
Lemonis described a tight set of actions that firms can apply in any sector. The approach emphasizes simplicity and speed so managers can act each quarter, not once a year.
First, focus on cash. Shorten the cash cycle where possible. Delay noncritical spending. Secure backup credit and monitor inventory turns weekly, not monthly.
Second, rebuild the supply map. Identify critical parts with limited sources. Qualify at least one alternate supplier per key input, even at a higher quoted price, to gain leverage and continuity.
Third, stay close to the customer. Explain price changes early. Offer bundles, smaller pack sizes, or loyalty credits to ease sticker shock. Retention is cheaper than replacement when demand gets soft.
The message is to trade a small amount of efficiency for resilience. That trade often protects both revenue and reputation during shocks.
Winners, losers, and what comes next
Tariffs tend to help a narrow set of domestic producers while raising costs for downstream users. Steel mills saw firmer prices at times, while machinery makers and construction firms paid more for inputs. Retailers and auto parts suppliers faced hard choices on pricing and selection.
Some firms benefited by reshoring select steps or investing in automation. Others leaned on Mexico or Vietnam to reduce exposure to China tariffs, though shipping costs and lead times rose.
The risk now is policy whiplash. Elections, trade talks, and new sector‑specific measures can move fast. That argues for short planning cycles and clear triggers for action.
Signals to watch
Several indicators can help leaders anticipate the next move:
- Official tariff announcements and exclusion lists from U.S. trade authorities.
- Freight rates and delivery times, which reveal supply stress before earnings do.
- PMI price and supplier delivery indexes, leading clues to inflation and delays.
- Retail sell‑through and returns data for early signs of consumer fatigue.
“How business leaders are reacting to President Donald Trump’s tariffs.”
That reaction is now a core operating skill. Leaders who preserve cash, broaden supply options, and communicate clearly are better placed to handle the next swing, whether tariffs rise, fall, or shift to new goods.
For now, the playbook is simple: build resilience before you need it. The firms that plan with discipline and act in shorter loops will have more room to invest when volatility returns.
