Small and mid-sized businesses are bracing for trouble as new tariffs loom, according to a new report from inventory management software provider Netstock. The company surveyed more than 120 of its U.S. customers to find out how they’re responding—and what’s keeping them up at night.
“By surveying our customers, we share real-world insights on how U.S. tariffs are impacting inventory planning,” said Ara Ohanian, CEO of Netstock. “It’s all about providing businesses with relevant data that can help them navigate the current challenging supply chain landscape.”
According to the 2025 Tariff Impact Report, 63% of SMBs expect a moderate to major hit from new tariffs. Rising costs are the biggest concern, with 70% listing it as their top challenge. Nearly 1 in 5 companies said more than 75% of their inventory is exposed to tariff risk.
When it comes to which countries pose the biggest concern, China leads the list. Nearly half of the respondents (47%) said they were highly concerned about tariffs on Chinese goods, and 74% said they viewed the risk level as moderate to severe. By contrast, just 7% are highly concerned about tariffs on goods from Canada, and 6% about Mexico.
Most companies aren’t rushing into big changes just yet. A majority—57%—are taking a “wait-and-see” approach, monitoring the situation before shaking up supplier relationships or sourcing strategies. That said, 58% are already working to diversify their supplier base, signaling a push for more flexibility in the long run.
One option is nearshoring, but it’s not gaining much traction. Only 15% of respondents seriously consider it, and more than 40% say they’re not interested. Concerns over changing trade policies with neighboring countries are the reason behind that hesitation.
Still, many SMBs are turning to technology to stay ahead. About 76% said they use data-driven tools to make smarter inventory and supply chain decisions. Overall, the study found that while tariffs may be unpredictable, the companies using tech are better positioned to adapt quickly.