How to Offset the Cost of Tariffs With Plastiq

Trade tensions and evolving international tariff policies continue to create uncertainty for businesses that rely on global supply chains. Even modest tariff increases can significantly raise the cost of goods and strain operating cash flow.

Adding to the complexity, U.S. Customs and Border Protection (CBP) only accepts ACH debit or credit payments for duties and tariffs, requiring businesses to pay out of pocket upfront. 

Businesses across industries need strategies to manage import costs and maintain financial agility. Priority’s bill pay solution, Plastiq, enables businesses to fund U.S. duty payments from a credit card — even though CBP doesn’t accept them directly. With this capability, businesses can preserve cash flow and navigate evolving tariff costs effectively. 

Key takeaways:

• Tariffs increase costs and impact operational cash flow for businesses across industries. 
• Understanding how to offset tariffs is essential for protecting margins, maintaining consistent pricing, and remaining financially resilient.
• Plastiq allows a business to pay CBP duties with a credit card, providing an extended payment window and greater cash flow flexibility.

What is a tariff, and how does it work?

A tariff is a government-imposed tax on goods imported from other countries. Tariffs are intended to encourage consumers to buy domestic products by making foreign products more expensive. Since tariffs increase the landed cost of goods, they can tighten a business’ profit margins and make it harder to keep pricing competitive. 

Tariffs are typically paid at the time of entry into the country. In the U.S., importers are required to pay duties to CBP via an ACH credit or debit, making tariffs a significant out-of-pocket cost.

If your business imports goods, it’s essential to adopt tariff payment strategies that allow you to extend payment cycles and manage cash outflows effectively. 

The 2025 tariffs and what they mean for businesses

In 2025, the tariff landscape in the U.S. continues to shift. Tariffs currently affect nearly all major U.S. trade partners to some degree, including China, Mexico, Canada, South Korea, and many others. 

As trade policies evolve, businesses should monitor trusted news outlets and government resources for updates specific to their products and suppliers. However, regardless of industry or supplier location, the need for robust cash flow management has never been greater. 

Businesses that proactively plan to offset tariffs now can better prepare to absorb potential cost increases and navigate supply chain disruptions going forward. 

Why businesses need to offset tariffs

As tariff costs rise, businesses must find ways to mitigate their impact and protect their financial health. A clear plan for managing these expenses can strengthen long-term stability, with key strategies including:

• Maintaining competitive pricing
• Protecting profit margins

Maintaining competitive pricing

Passing tariff costs directly to customers can alienate buyers, threatening customer loyalty and making your business less competitive. To keep prices stable, you may need to absorb costs strategically without compromising margins.

Protecting profit margins

Tariffs raise the cost of imported goods, putting immediate pressure on profit margins. For example, a small business importing fabric for custom clothing would make less profit on every sale due to higher materials costs.

Without a plan to offset the cost of tariffs, businesses can face cash flow shortages and struggle to meet operating expenses.

5 strategies to offset tariffs

Businesses that understand how to offset tariffs are better positioned to protect their margins as trade conditions evolve. These five strategies can help you manage tariff-related expenses and keep your operations running smoothly: 

• Improve cash flow management
• Diversify your supply chain
• Optimize pricing strategies 
• Engage in strategic partnerships
• Stay informed on tariff changes

1. Improve cash flow management

Effective cash flow management is fundamental as the cost of tariffs fluctuates. By extending payment cycles, you can preserve cash reserves to better meet financial obligations without relying on short-term credit.

Although CBP requires businesses to pay import duties and tariffs by ACH credit or debit, Plastiq lets you fund those payments with a credit card. You can also pay customs brokers and international freight partners by card for added flexibility to manage global supply chain expenses.

These steps help you optimize working capital and maintain control of your cash flow, even as import costs shift in response to changing trade policies. 

2. Diversify your supply chain

Sourcing goods and materials from a single supplier or region increases your exposure to changing tariff rates and trade restrictions. For example, if you source all packaging materials from a single country, your import costs could spike unexpectedly if new tariffs are imposed.

By diversifying your supply chain to include multiple suppliers across different regions, you can reduce your exposure to tariff shocks. 

3. Optimize pricing strategies 

Tariffs turn pricing into a balancing act. While some cost increases can be passed on to customers, aggressive price hikes can drive them away. Businesses need to understand how tariffs affect specific products and segments and where there’s flexibility to adjust pricing. 

A smart merchant services payment processing platform with detailed analytics on pricing trends and customer behavior can help you make targeted adjustments. Concrete data allows you to identify opportunities to flex pricing and determine when absorbing costs is necessary to retain customers.

4. Engage in strategic partnerships

Strategic partnerships are an effective way to navigate tariff-related challenges. Experienced logistics, fintech solutions, or payments providers can offer advice on how to control costs and adapt your processes as needed. 
For example, a knowledgeable payments provider may offer solutions to improve cash flow and manage duty expenses. Reliable partners across the supply chain can help you offset tariff-related costs and move your business forward confidently, even amid ongoing uncertainty.

5. Stay informed on tariff changes

Proactively tracking tariff updates allows you to stay ahead of potential disruptions. A sudden tariff increase on goods from a key supplier could raise costs and disrupt your operations with little warning.

Monitoring trade alerts, consulting with customs brokers, and communicating with logistics partners can help you anticipate changes. When you’re informed, you can adjust pricing or shift sourcing before tariffs affect your bottom line. 

Take control of your tariff payments with Plastiq

Planning for tariffs today sustains growth tomorrow. To protect your margins, you need proactive strategies to manage and offset tariff-related costs. 

Plastiq makes it possible to pay U.S. import duties by credit card, enabling you to extend payment cycles, manage cash outflows, and maintain working capital. With less pressure on your cash reserves, you can invest confidently in other areas of your business, even as global trade conditions evolve.

Ready to take back control of your cash flow? Get in touch with Priority to learn more about paying duties by card.