Tariffs were the talk of the town at Epicor Insights 2025, but columnist Gene Marks offered some solutions.
Tariffs are on everyone’s mind, and that was evident at Epicor Insights 2025. Manufacturers and distributors are watching for the latest news on how those tariffs will impact their bottom line.
Gene Marks, columnist and speaker, told attendees that even though tariffs are on their minds, there are things that can be done to get ahead of the uncertainty.
Kerrie Jordan, Epicor’s group vice president of product management, asked the crowd how many of them expected tariffs to affect their business, and almost every hand went up. When she asked the crowd how many had a rock-solid plan for dealing with them, only a hand or two went up.
“It’s kind of hard to do because it’s changing constantly,” she said.
Marks writes about public policy for the New York Times, the Washington Post, the Guardian and other outlets.
“Anything I say could possibly change in the next 30 seconds, based on the way things have been going,” Marks joked.
Uncertain roads ahead
When it comes to tariffs, a lot of things are on hold.
“The Trump administration announced reciprocal tariffs on 90 countries,” Marks said.
Most of those tariffs, however, are on hold with 75 of 90 countries negotiating with the United States. There is currently a 10% tariff across the board on all goods coming into the U.S.
However, the elephant in the room is the 145% tariff on all goods coming in from China. This tariff is in addition to tariffs imposed on China by the Biden administration, puffing Chinese tariffs to 185%.
Focus is on China
Even though Marks said he is optimistic that most of the tariff battles will be resolved in the U.S.’s favor, he believes China could pose a problem for manufacturers and distributors. Even so, he believes there are things companies can do to get around those restrictions.
“There are a lot of things you can do to navigate your way around,” he said. “If you’re buying materials that are sourced from overseas, immediately, you’ve got those cost challenges.”
Apart from buying from American suppliers, when possible, Marks said there are other tactics.
Bonded warehouses and free trade zones
Two options Marks offered were bonded warehouses and free trade zones.
A bonded warehouse is a secure storage facility regulated by customs authorities and exempt from duties and taxes. A free trade zone is a designated area within a country where goods can be imported, made and exported without being subjected to tariffs.
“You can purchase materials from overseas, bring your materials in a bonded warehouse or free trade zone warehouse, no tariffs are imposed,” he said. “You’re only charged when you pull those materials out of the warehouse.”
The strategy here, Marks said, entails playing a waiting game to see if tariffs will be imposed on those items.
The World Trade Centers Association
Another resource Marks offered was the World Trade Centers Association.
“They’re free,” he noted. “They want you to become a member. You go to them, give them your SIC [Standard Industrial Classification] code, and they’ll find alternative suppliers for you.”
Marks said the WTCA has a database of suppliers in tariff-friendly countries, and representatives will even accompany members on trips to make introductions face to face.
Cognitive enterprise resource planning (ERP)
Data is another tool that manufacturers and distributors can use to their advantage when it comes to tariff uncertainty.
ERP and data will alert manufacturers to supply chain issues, predict where problems could occur and suggest solutions.
“Lean into the technology,” Marks said.
Zero in on customers
Another strategy would be to focus on customers.
“If you get an increase in price because of tariffs, the laziest thing you can do is spread that cost across all of your customers,” he said.
Using ERP systems, companies can check their customer reports and make individual pricing decision based on the customer.
“If you have a profitable, long-term customer, you’re probably not going to raise their prices at all,” he said. “But if you have a customer who is a pain in the neck, doesn’t pay on time, is not profitable, you might have more of a price increase on that person. Focus on the customer and the profitability of that customer.”
Margins
Marks said businesses should also focus on margins, not percentages.
“It’s about protecting your margins,” he said. “If you’re making a $30 product and there’s a 10% tariff increase, it doesn’t mean you increase your prices by 10%. You might increase it by 7.5%. Your net margin will still be $30. That’s what covers your overhead.”
Line items
Another accounting principal Marks offered was adding tariffs as a line item.
“In the manufacturing and distribution world, pulling out the tariff increase and showing it separately on the invoice to show we’re not raising our prices, but your increase is because of this tariff increase,” Marks said.
He noted that it’s also easier to pull that line item out if things change rather than redoing all the prices.
Supply chain disruptions
Maybe more than tariffs, Marks said he believes geopolitical events are more likely than anything to disrupt the supply chain.
“Every major supply chain disruption was unthinkable,” he said. “Pandemic, Houthis, you don’t know. I have less of a fear of tariffs disrupting the supply chain than some geopolitical event.”
