How Mid-Sized Companies Can Navigate Tariff Pressures and Supply Chain Risk

As global trade tensions rise and tariff threats re-emerge, finance leaders—particularly CFOs at mid-sized companies—are being forced into high-stakes decision-making. While large corporations may have the resources to weather increased costs or shift operations overseas, and smaller firms may navigate with agility, mid-sized businesses often fall into a dangerous middle ground: too large to be nimble, but without the financial cushion to absorb the impact.

Recent data highlights a troubling trend: 65 percent of CFOs are now renegotiating supplier contracts in direct response to current and anticipated tariffs. The need for strong financial leadership has never been more apparent—and this is where fractional or outsourced CFOs can make a critical difference.

The Tariff Squeeze: What’s Happening?

Increased tariffs—especially on imports from countries like China—are driving up the cost of raw materials, components, and finished goods. Many companies are seeing their supply chain costs spike, putting pressure on both profit margins and customer pricing.

In addition to higher direct costs, tariffs create uncertainty. Companies don't know when, or if, policies will shift again. That volatility disrupts procurement planning, delays decision-making, and increases the risk of inventory shortages or overstock.

How CFOs Are Responding

Mid-market CFOs are tackling the issue from multiple angles:

1. Renegotiating Contracts

Over 60 percent of CFOs have begun talks with suppliers to rework existing agreements—adjusting prices, payment terms, and service level expectations. These negotiations are essential for sharing the cost burden and protecting cash flow.

2. Supplier Diversification

Relying too heavily on one geographic region can increase vulnerability. More companies are sourcing from alternative locations or building redundancy into their supplier networks.

3. Cost Efficiency Initiatives

Tariffs often force CFOs to take a hard look at internal operations. Where can we eliminate waste? Can we automate manual processes? Can we reduce freight or warehousing costs?

4. Scenario Planning and Forecasting

Agile companies are now running multiple financial scenarios based on possible changes in tariffs, shipping delays, or vendor disruptions. Advanced financial modeling tools help leadership make faster, more informed decisions.

5. Investment in Technology

Digital transformation isn't a luxury anymore—it's a necessity. Finance teams are leaning into cloud-based systems, automated reporting, and AI-powered forecasting to improve visibility and decision-making.

Where Fractional CFOs Add Value

For companies without a full-time CFO—or those needing strategic support at a high level—outsourced CFOs provide a scalable, cost-effective solution.

At CFO Growth Advisors, we work with clients to:

• Develop actionable financial strategies to mitigate tariff impacts

• Run supply chain risk assessments and recommend diversification plans

• Build financial models and forecasts that support proactive decision-making

• Negotiate with vendors and partners to preserve working capital

• Align financial goals with operations and market conditions

We bring C-suite expertise without the full-time cost, helping mid-sized companies lead with confidence through uncertainty.

Final Thoughts

Tariff threats and supply chain volatility aren’t going away anytime soon. In fact, as global political dynamics continue to shift, financial leaders should expect ongoing disruption.

But with the right financial strategy and leadership—especially from an experienced fractional CFO—mid-sized companies can turn these challenges into opportunities. Whether it’s by tightening operations, diversifying suppliers, or improving forecasting, smart financial leadership is the key to staying resilient.

Need help navigating the road ahead? Contact us to learn how a fractional CFO can help your business weather tariff risks and grow strategically.