August 1 Is Coming—Is Your Deduction Strategy Ready for the Tariff Surge?

There’s a clock ticking. Quietly, maybe—but loudly enough for CFOs and supply chain execs to feel it in their bones. The U.S. has just extended its pause on sweeping new tariffs until August 1, 2025. That gives suppliers a few short weeks to get ahead of what could become one of the most expensive curveballs they’ve seen since the last tariff wave.

Now is the time to get your ducks in a row—because when those tariffs hit, every dollar you’re losing to retail deductions will sting twice as hard.

The Calm Before the Tariff Storm

In April, the administration announced a new wave of import tariffs—nicknamed “Liberation Day tariffs”—that could spike as high as 49% or more for countries without a reciprocal trade agreement. While the rollout was paused for 90 days, that pause has now been extended one more time to August 1.

The message is clear: Get your house in order now. After that, things are going to get more expensive—fast.

Let’s put it in context. Suppose you're a mid-sized brand importing $3 million in goods annually from Vietnam. If no deal is reached, and tariffs climb even just 20%, that’s an additional $600,000 right off the top.

And if you're also letting $300K in retail deductions slide every year? That’s $900K in margin leakage—and rising.

Tariffs and Deduction: A Double Punch to Your P&L

When costs spike, the natural response is to tighten spending, optimize pricing, and look for savings. But here's the catch: Retail deductions are often hiding in plain sight—and most brands have no idea how much they’re losing.

Now layer in a potential 25% or 40% tariff on top of that.

Suddenly, every undisputed deduction, every misunderstood chargeback, and every post-audit surprise becomes more than an annoyance. It’s a hit you can’t afford when costs of goods are surging across your supply chain.

This Is the Wake-Up Call

Let’s imagine a fictional supplier—call them “ClearWave Beverages.” They import glass bottles from Asia and sell to three major U.S. retailers. When tariffs are imposed, their margins are tightened overnight. As they dig into their ledger to recover cash, they realize they’ve been writing off $ 50,000–$ 75,000 per retailer per year in deductions they didn’t fully understand.

Now, in the middle of a margin crisis, they’ve got to fight for money they could have already recovered.

Here’s the point: Don’t be ClearWave. Don’t wait until the tariff floodgates open to wonder where your margin went.

What You Should Be Doing—Right Now

With the August 1 deadline looming, smart suppliers are taking three proactive steps:

1. Review deduction trends from the past 18–24 months.

2. Audit open disputes and compliance chargebacks to see what’s still recoverable.

3. Partner with a team like HRG to uncover hidden losses and prevent new deductions before they happen.

HRG helps brands recover millions in previously written-off deductions, using a hands-on, expert-led approach enabled by proprietary technology. We also help prevent deductions before they happen—something no bot can do.

Because when tariffs go live and the squeeze tightens, proactive recovery will be the lifeline you wish you had grabbed earlier.

Final Thought

You can’t stop tariffs. But you can stop the silent drain from happening inside your deduction ledger.

August 1 is just around the corner. If you’re waiting to see what happens, just know that your competitors may already be plugging the leaks while you’re still bailing water.

Let HRG help you reclaim what’s yours—before new costs make the damage permanent.

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