Tariffs Raised Your Costs. Are Retail Deductions Quietly Making It Worse?

Tariffs are the thunderclap. Loud. Sudden. Impossible to ignore.

When they hit, every supplier scrambles. The cost of goods goes up. Gross margin takes a hit. You freeze new hires. Put that packaging redesign on pause. Maybe even rethink your next production run.

But here’s the question no one’s asking: What about the silent storm already draining your bottom line?

We’re talking about deductions.

The Scenario You Didn’t See Coming

Let’s paint a picture. Your CFO is focused on a recent 12% spike in landed cost thanks to new U.S. tariffs. Everyone’s in triage mode—holding budget, trying to keep retailer relationships intact.

Meanwhile, in Accounts Payable, a team member quietly codes $40,000 in deductions to “discrepancies.” No one challenges it. No one investigates.

Why? Because it happens every month.

That’s the trap. Tariffs demand your attention. But deductions? They’re the background noise—until you realize you’re down six figures over the last two quarters and can’t explain why.

A Fictional Example (That’s All Too Real)

One mid-size supplier—we’ll call them “Summit Foods”—was bracing for layoffs after tariffs tanked their forecast. Payroll, marketing, even R&D were on the chopping block.

On a hunch, their finance lead pulled three months of deduction data. Then brought in HRG to review it.

What they found was staggering: Over $120,000 in unauthorized deductions across just two retailers—pricing errors, unvalidated compliance charges, and late deliveries that weren’t late at all. HRG helped recover nearly 80% of it.

That unexpected windfall? It covered payroll for three warehouse employees. Orders kept flowing. Fill rate stayed high. Their retail partners never even knew how close things came to falling apart.

Again, this example is fictional—but it’s grounded in stories we hear every week.

The “Cost of Doing Business” Myth

There’s a dangerous assumption in CPG: that deductions are inevitable. Like freight surcharges or shelf resets. Something you can’t fight.

But that’s not true.

Yes, retailers are more aggressive than ever. Compliance requirements are stricter. Automation makes deductions lightning-fast.

But guess what? That means you need to be faster, too. You need a partner who can spot patterns, flag disputes early, and recover dollars before they slip into next quarter’s write-offs.

Why It Matters More Right Now

Tariffs are draining your top line. If deductions are draining your bottom line too, you’re caught in a pincer movement. And it’s happening while every penny matters more than it has in years.

Your retailer might not give you more margin. Your freight forwarder won’t lower costs.

But deduction recovery? That’s the one place where you can fight back—and actually win.

Conclusion

Tariffs are loud. Retail deductions are quiet. HRG helps you tackle both. Let’s talk about protecting the profits you’ve already earned.

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