How to navigate Trump’s promised tariffs: Focus on what you can control

The recent buzz around Trump’s proposed tariffs has many Canadian businesses—and their American counterparts—feeling uneasy. For exporters and domestic manufacturers alike, the concerns are real:

Higher costs

Tighter margins

Shifting trade dynamics

But while these challenges are significant, they are far from insurmountable. In fact, businesses that take a proactive approach have an opportunity to emerge leaner, stronger and more competitive—regardless of the tariff environment.

So, how do you prepare for this potential shake-up? The answer lies not in panic but in process. By optimizing efficiency, businesses can offset rising costs and navigate an uncertain trade landscape with confidence.

Find and fix hidden inefficiencies

Many businesses don’t realize how much money they lose due to inefficiencies lurking within their operations. From redundant workflows to production bottlenecks, wasted time and resources quietly erode profitability.

Now is the time to take a close look at your processes. Conduct a deep dive to identify where things slow down or break down:

Are there delays in production?

Is there unnecessary waste in materials or time?

Where are the most significant cost sinks in your operation?

For many businesses, these inefficiencies can be corrected without major capital investments. Simple adjustments often deliver significant savings that make all the difference when costs rise.

Shorten lead times to stay competitive

Lead time reduction is one of the most effective ways to improve margins and gain an edge. Why? Faster production and delivery mean less inventory, fewer delays, reduced waste, and quicker cash flow.

Optimizing workflows—whether through better resource allocation, automation, or streamlined processes—can help you turn orders around more efficiently. In a tariff-driven environment where costs are climbing, speed and agility become critical competitive advantages.

For example, one of our client’s productions was bogged down by inefficiencies that seemed minor at first glance. However, by implementing Lean methodologies, we cut their lead times by 80% and significantly reduced costs. Not only did they regain their competitive position, but they also strengthened their ability to weather tariff-related pressures.

Engage your team in the process

Your employees are your front-line problem solvers. They see the daily struggles in your operations and often have keen insights into where resources are wasted or workflows could be improved.

Empowering your team to contribute to the process improvement journey can drive significant, sustainable change. It also boosts morale—showing employees that their input matters and that they play a critical role in navigating these challenges.

The key here is collaboration. Engage your teams in identifying issues, brainstorming solutions and implementing changes. This not only optimizes processes but builds a culture of continuous improvement.

Demonstrated vs. Theoretical Output: Where’s your opportunity?

When we begin working with a client, we often measure what we call Demonstrated Output—the actual performance of their processes, including all the inefficiencies and “noise” that have crept in over time.

Then, we compare that figure to the Theoretical Output—what the operation could achieve under ideal conditions.

The result? Demonstrated Output is typically only 50 per cent of Theoretical Output. This means there’s often massive untapped potential, and much of it can be unlocked with simple process improvements—not expensive overhauls or new equipment.

This is an important reminder for businesses facing tariffs or rising costs: You may already have the resources you need to stay competitive. The real challenge is ensuring they’re optimized.

Control what you can: Efficiency wins the day

Tariffs and shifting trade policies are largely out of your control. But your internal operations? That’s where you hold the power. Businesses that thrive in a high-tariff environment are the ones that focus on what they can influence: efficiency, agility, and smarter processes.

Instead of reacting to higher costs with panic, use this as an opportunity to reassess and improve. The path forward isn’t about cutting corners—it’s about maximizing what you already have.

If you’re ready to uncover opportunities within your operations, start by asking: Where is our potential going unrealized? Whether it’s lead times, inefficiencies, or team engagement, the room for improvement is often much greater than expected.

By taking control of your processes, you can transform challenges into competitive advantages—no matter what trade policies come your way.