Wholesale’s critical role as brands brace for the next wave of tariff impacts. 

New US tariff policies have generated chaos for brands and retailers around the world. The first quarter of the year was spent in a whirlwind of rushed production to fill orders placed in advance of the initial reciprocal tariff deadlines set for February and April. Then the waiting game began. Everyone wondered if prices would rapidly increase, and if they did, if consumers would continue to make purchases. The race to move goods into US warehouses put brands and retailers at risk for long lasting overstocks if spending crashed. But throughout the spring and summer, rapid price hikes remained a rarity, and American consumers continued to shop even if they noticed that some prices had risen. 

There are concerns that retail numbers in recent months could have been propped up by more people pulling forward their back-to-school and holiday purchases. There have been several reports on consumers adjusting the timing of their seasonal shopping to avoid paying more for goods once tariffs took effect. This could be one reason that retail sales defied expectations and once again rose, increasing 0.6 percent in August in the US. Some of the increase may also be attributed to higher prices versus higher purchase volume. The bottom line, more than six months after the initial changes to US tariffs there is still little clarity for brands and retailers on when consumers might reach their breaking point. 

There is one new factor that brands and retailers must consider as they plan for the fourth quarter and next year. On August 29, the de minimis rule that exempted goods entering the US valued at under $800 from tariffs was suspended. Shipments that qualified for de minimis status comprised 92 percent of all freight entering the US, according to government data. There has been much discussion about how the end of the de minimis rule would cripple low-cost retailers like Shein and Temu. But the reality is all types and sizes of retailers are being impacted. They are also just starting to feel and understand how this will affect their business. The Universal Postal Union reports that since the end of the de minimis exemption, 88 international postal operators have ceased some if not all shipments to the US. There are also reports that shippers like FedEx and United Parcel Service are issuing invoices to consumers for tariffs they may not have been aware they would be required to pay when they placed their orders. 

While brands and retailers have known about the new tariff policies for several months now, the fallout is only just beginning to be understood. Any stockpiles of goods shipped to the US in the first quarter are likely now dwindling. As brands strategize production runs for 2026 and retail buyers contemplate orders for spring, tariffs will be a major factor. 

Wholesale relationships increase in value for brands 

Small and mid-size brands face the greatest risk for losing direct to consumer sales in the US market. Unable to absorb the costs of tariffs themselves, and lacking negotiating power with manufacturers, these brands will need to rely on retailers to bring their goods into the US to avoid price increases for consumers. With tighter budgets smaller brands will have reduced opportunities to promote themselves via social media and other marketing campaigns and will need strong retail partners to reach their target audiences. 

Preparing for the unknown 

There are no guaranteed outcomes on how or when tariffs will begin to make a meaningful impact on consumer spending. Brands need to take steps to optimize their business and maximize their potential for success. Five things that brands should be focusing on are pricing and cost strategy, inventory and demand planning, communication with retail partners, brand positioning, and tech stack and operational readiness. 

Pricing + cost strategy 

• Recalculate landed costs to identify SKUs most impacted by tariffs 
• Implement strategic repricing and avoid across-the-board increases 
• Build in flexible pricing tiers or promotional pricing to retain key partners 

Inventory + demand planning 

• Review sell-through data and identify top-performing vs. slow-moving SKUs 
• Reduce exposure to low-margin or tariff-heavy items 
• Highlight on-hand Available to Sell (ATS) inventor to retailers (especially pre-tariff stock) 

Communication with retail partners

• Be pro-active and transparent with retailers about tariff implications 
• Offer data-backed justifications for pricing shifts 
• Align on co-op marketing or shared cost strategies with top partners 

Brand positioning 

• Double down on messaging on the brand story, values, and product quality 
• Ensure website and B2B marketing materials emphasize value, not just price 
• Consider region-specific collections, bundles, or exclusives for global growth 

Tech stack +  operational readiness 

• Audit your tech stack for real-time pricing, inventory, and order visibility 
• Ensure platforms can support localized catalogs, currencies, and fulfillment 
• Explore tools that automate customs classifications or tariff estimation 

As the holiday season unfolds, brands and retailers will continue to learn more about how the latest tariff rules will impact consumer spending and their bottom lines. Winning brands and retailers will be those that plan ahead, seek opportunities for differentiation and growth, and invest in data that can streamline operations while helping to predict future trends. 

Lisa Lopez 

www.nuorder.com 

Lisa Lopez is Director of Content Marketing at NuORDER. NuORDER by Lightspeed is a leading B2B commerce platform powering wholesale buying and selling. NuORDER offers a full suite of commerce solutions engineered to streamline the way brands sell their products all around the world while providing retailers with the insights they need to make better buying decisions. Today, more than 3,000 brands and more than 100,000 retailers use NuORDER to transform their wholesale operations. Lightspeed acquired NuORDER in 2021.