Tariff Shock-Proofing Your Cash Flow

By Charles Brooks | WBN Contributor | May 9, 2025

In today’s global economy, it doesn’t take much for tariffs to disrupt your cash flow. One international policy shift—and suddenly your cost of goods spikes, suppliers delay shipments, and your margins shrink overnight.

This volatility can paralyze business owners, but it doesn’t have to be. As a financial adviser, I help clients implement innovative, proactive strategies that stabilize their cash position in uncertain times.

Start by creating a rolling 13-week cash flow forecast. This simple tool gives you a real-time dashboard of when money is coming in and going out. It helps you anticipate shortfalls before they hit and make better decisions on timing your expenses.

Second, build a shock-absorber fund. Like a personal emergency fund, your business should hold 1–3 months of operating expenses in a liquid account. This reserve buys you time when supplier costs rise due to tariffs or other unexpected fees.

Third, renegotiate supplier terms. In a volatile market, vendors may be more open to flexible payment schedules, discounts for early pay, or volume incentives. This is where relationships matter—talk to your suppliers before you’re in a crunch.

Finally, consider a working capital line of credit before you need it. It’s always easier to secure financing when your balance sheet is strong. This can be a lifeline if tariffs throw your supply chain into chaos.

Tariffs are unpredictable—but your response doesn’t have to be. In times of economic uncertainty, cash flow is king. Plan, stay liquid, and you’ll stay in business.

Charles Brooks charles@cbrooks.ca

TAGS: #Financial Strategy #Small Business Tips #Tariff Impact #Cash Flow Management #Economic Volatility #Business Finance