In 2001, NewAir started in a garage with no outside funding—just a couple of products and a vision. Over the next two decades, we scaled into an $80M brand, landed in major retailers, and eventually sold in a mid-eight-figure private equity deal.
One of the toughest strategic challenges I faced came in 2017 when tariffs on China were first introduced. Like many consumer brands, we relied heavily on Chinese manufacturing. Overnight, landed costs jumped 15–25%.
There was no time to wait for clarity. No guarantees, no perfect information. We acted immediately:
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Pushed through price increases.
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Cut unprofitable SKUs.
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Shifted final assembly to Mexico to retain trade protections.
It wasn’t easy—but protecting margins became priority #1.
The lessons were clear:
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Be decisive. Inaction during uncertainty is deadly.
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Margin is everything. Better to shrink revenue than bleed profit.
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Hope is not a strategy. Make decisions based on today’s reality, not tomorrow’s speculation.
Those moves allowed us to stay profitable and resilient through the chaos. And now, similar warning signs are flashing again.
What’s Ahead in the Next Tariff Cycle
With Trump signaling broad tariff hikes and bipartisan pressure building, CEOs are once again facing uncertainty.
Here’s what I see as the most likely outcome: tariffs will be used as leverage, not just punishment.
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Mexico, Canada, Vietnam: Likely to secure relief in exchange for concessions (quotas, labor standards, IP enforcement).
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China: Different story. The U.S. stance has shifted from “trade dispute” to “strategic rivalry.” Expect sustained tariff pressure, especially in sectors tied to national security, tech, and supply chain control.
For companies with deep exposure to China, relief isn’t coming anytime soon.
How Smart CEOs Are Responding
The winners won’t be the ones who wait. They’ll be the ones who act now, controlling what they can:
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Cutting low-margin SKUs to simplify product lines.
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Shifting sourcing and assembly to Mexico or other nearshore regions.
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Renegotiating freight and fulfillment strategies to offset cost spikes.
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Updating P&L models to understand exposure and adjust pricing early.
Even if policies shift in the next 12 months, planning must start now. Tariff risk erodes margins quietly and kills valuation when it’s time to raise capital or exit.
Final Thoughts
If you’re importing from China or relying heavily on global sourcing, don’t assume this will blow over. Investors and buyers will spot the risk—even if you haven’t.
The lesson from 2017 still holds: the worst move in uncertain environments is no move at all.
If you want to compare notes or talk through strategy, I’m open. Reach out directly: Luke@ApexCEO.co
