How U.S. Tariffs Are Reshaping Small Business Logistics

Shonali Paul, founder of Paul John Indian Caffeine Company, discusses the impact of U.S. customs regulations and tariffs on small business logistics. Tariffs raise product costs, forcing companies to adjust shipment sizes and timing, or shift production domestically. While higher prices affect customers, Paul believes transparency—like listing tariffs as separate line items—builds trust. For businesses dependent on imports, adapting models to factor in regulatory changes is crucial. Although increased paperwork may result, the cost burden is more significant. Paul emphasizes reviewing finances, improving efficiencies, and maintaining honest communication with customers to navigate these evolving challenges effectively.

Scott Douglas Jacobsen: How do U.S. customs regulations affect company logistics and shipping strategies?

Shonali Paul: For companies that rely on imports especially it will greatly affect the timing, and quantity of shipment they bring in. Because the tariffs raise prices they have to reduce overall cost any way they can, which could be the shipping cost making it take longer to arrive or even the quantity of the product being brought in due to the overall capital expenditure caps companies may have.

Jacobsen: How will regulatory changes impact the cost structure for products?

Paul: With the current tariffs we will see prices of products increase for customers unfortunately. But it has pushed companies to buy domestically and even move production to the states which will have a positive impact on jobs and the overall economy.

Jacobsen: What steps can communicate changes and delays to customers to keep transparency and trust?

Paul: I think the best way is to mention the tariffs as a separate line item that could be applicable if they remain or not if eliminated. That gives customers the most transparent reason for the cost escalation.

Jacobsen: What are long-term implications for small businesses who rely heavily on cross-border e-commerce?

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Paul: It will affect their bottom line, and they will have to rework their business model to include tariffs even in part if they stay in place.

Jacobsen: Will there be increased paperwork and compliance requirements for formal entry processing for shipments?

Paul: There may be an added layer of paperwork for products that may not have had any import fees but not much of a change for those that did, it would just be an increase in the cost.

Jacobsen: Are you exploring partnerships with other logistics providers or considering U.S.-based distribution?

Paul: As a coffee company we have no choice but to import coffee from global regions as America doesn’t grow coffee except in Hawaii. Our mission is to bring Indian coffee to the US Market. We have always used a domestic packaging company but those that haven’t have started to look domestically for packaging solutions now.

Jacobsen: Any advice for other small business owners facing similar hurdles due to regulations and suspensions?

Paul: My advice is to look at your numbers and see where things can be improved and explain to customers very transparently the increase in cost. I do think most are understanding of that.

Jacobsen: Thank you for the opportunity and your time, Shonali.

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Scott Douglas Jacobsen is the publisher of In-Sight Publishing (ISBN: 978-1-0692343) and Editor-in-Chief of In-Sight: Interviews (ISSN: 2369-6885). He writes for The Good Men Project, International Policy Digest (ISSN: 2332–9416), The Humanist (Print: ISSN 0018-7399; Online: ISSN 2163-3576), Basic Income Earth Network (UK Registered Charity 1177066), A Further Inquiry, and other media. He is a member in good standing of numerous media organizations.