Margins in the Crosshairs

Key Takeaways from Our June Tariffs & Trade Talk

On June 17, ahead of Lightovation and the Total Home & Gift Market, Dallas Market Center hosted a lively session on one of the most urgent topics facing manufacturers and retailers today: tariffs, trade policy, and their growing impact on the bottom line.

The event, Margins in the Crosshairs: A Tariffs & Trade Talk, featured expert insights from:

• Jonathan Gold, National Retail Federation

• Chuck Fraelich, tag

• John Toler, Evergreen

• Warren Shoulberg, moderator and industry expert

Together, they unpacked the shifting global trade landscape and provided actionable strategies to help businesses adapt.

While lawsuits challenging the use of the International Emergency Economic Powers Act (IEEPA) continue, a final ruling is not expected until next summer. The panel advised businesses to prepare now, as policy resolutions expected this fall could significantly influence sourcing and production strategies.

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Themes & Insights from the Discussion

• Diversification is key: companies are exploring selective domestic sourcing and avoiding high-tariff materials like steel.

• Communication matters: many smaller retailers were caught off guard by price increases tied to tariffs—vendors must lead with clarity.

• Retailer expectations are evolving: retailers are asking tougher questions and seeking new vendor partnerships. That shift is creating opportunities for brands with solutions.

• Expect a “Grand Reassortment”: as cost structures change, some products may no longer make sense at current price points or margin targets.

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Top Takeaways for Businesses:

1. Prepare for potential tariff changes as they arise

2. Educate retail partners early and often

3. Reassess the viability of materials and product mix

4. Stay in close communication with your teams and customers

5. Protect and project your brand identity—transparency builds long-term trust

The key message? Success in today’s volatile environment belongs to brands that stay flexible, informed, and connected.