We’re five months into 2025, and what a rollercoaster it’s been when we think about supply chains, business planning, and pricing! At Pet Boss Nation®, we’ve been carefully analyzing the tariff situation and its impact on pet businesses across the country. After conversations with manufacturers, distributors, and pet business owners like you, we’re breaking it all down.
This blog is your jumping-off point for understanding what’s happening with tariffs, how they’re impacting pet businesses, and most importantly, how you’re going to get through this and come out stronger on the other end. 💪
First of all…What exactly are tariffs?
Let’s start with the basics. Tariffs are taxes imposed on imported goods coming into the United States. They’re a fee charged as a percentage of the value of products entering our country from foreign nations.
The U.S. government uses tariffs for lots of reasons, including protecting domestic industries, generating revenue, and creating leverage in international trade negotiations.
But the important thing to note is that tariffs aren’t fines paid by other countries. They’re paid by importing companies here in the U.S. That means the businesses bringing in products, whether they’re manufacturing supplies or items you resell in your store, are the ones paying this tax.
But what happens next? That extra cost typically gets passed along through the entire supply chain and eventually makes its way to the consumer.
What is the current tariff landscape?
As of the publishing of this blog, here’s where we stand:
🗓️ On April 2nd, President Trump announced new reciprocal tariffs affecting over 180 countries and territories. Initially, this included a 10% baseline tariff on imports with additional tariffs for specific countries (20% for European Union, 34% for Chinese imported goods on top of existing tariffs).
🗓️ Then on April 9th, the administration paused the majority of these planned tariffs for 90 days… except for China, where tariff rates surged to 145%.😬
🗓️ Currently, a baseline of 10% tariffs applies to many other countries, including Mexico and the European Union.
How does this affect the pet industry specifically?
For the pet industry, these tariffs will affect things like:
- Pet food ingredients
- Packaging materials (especially aluminum and steel for canned pet food)
- Veterinary supplies
- Pet accessories and toys
And even if you pride yourself on carrying American-made products, don’t assume you’re in the clear. Many “Made in USA” products still source some ingredients or components from other countries. It’s also worth noting that “assembled in the United States” can qualify as “Made in USA” in some contexts, even if components come from elsewhere.
How are supply chains being affected already?
Even though we’re just at the beginning of this situation, many shipping containers coming in are approximately 40% emptier than before. That can mean a few things, including:
👉 A slowdown in production
👉 Delays in shipping
👉 Impact on ports, hiring, and truck drivers
If you had your pet business during the pandemic, this might be giving the same vibes… shelves may be a bit empty, and you might see some challenges with replenishing products. We’re likely to experience something similar to what happened in 2020, even if on a different scale.
#1 most important thing– You and your pet business are going to be okay!
Despite what seems like a “doom and gloom” scenario, there are concrete steps you can take to weather this storm and come out of this on top.
Here are some ACTION items you can start taking NOW:
✅ Audit and diversify your supply chain.
Review where your products are coming from and identify critical items that might be affected. Look for domestic alternatives where possible or source from countries with lower tariff rates.
✅ Work with your distributors and manufacturers.
Remember, you’re all in this together. Don’t blame them—they’re running businesses too and facing the same challenges. Have open conversations about how you can collaborate to minimize impact.
✅ Be strategic and STOCK UP!
While it might be tempting to stock up on everything, be cautious. Tying up too much cash in inventory can create other problems. Focus on your best-sellers and items with long expiration dates.
✅ Monitor your customers’ behavior.
Stay attuned to how your customers respond to price changes and adjust your offerings accordingly. This is the time to really understand what your market will bear.
✅ Get clients locked in early.
Service providers, this is crucial! Get clients on subscription models, encourage advance bookings, and secure deposits for future services. Create stability in your cash flow wherever possible.
✅ Look for opportunities to diversify your revenue streams.
If you’re primarily retail, can you add services like nail trim clinics, deshedding services, or self-wash stations? If you’re service-focused, could you add retail components? Diversifying revenue streams provides stability.
How to communicate with your customers and employees about tariffs.
When prices inevitably increase, people will have questions. Here’s how to handle this with both your staff and your customers:
🐾 Be transparent. Honestly explain why prices are increasing due to tariff surcharges. You might say, “We’ve absorbed as much of the cost as possible, but to stay in business supporting our local community, we’ve had to adjust some prices.”
🐾 Emphasize value. Continue to focus on quality, safety, and reliability, even as prices increase. Know your worth and what you bring to your community, and make sure you talk about how important your business is to the community every chance you get!
🐾 Educate your staff. Make sure your team understands the tariff situation so they can accurately explain it to customers. Share this blog with them!
🐾 Focus on solutions. Instead of dwelling on problems, highlight what you’re doing to mitigate price increases, whether that’s bulk pricing, loyalty programs, or alternative products.
Challenges are opportunities. Even tariffs!
Don’t view this situation as just another challenge to overcome. See it as an opportunity to get better! What would a Pet Boss™ do?
A Pet Boss™ would consider this a chance to:
➡️ Strengthen customer relationships through transparent communication
➡️ Find more efficient ways to operate your business
➡️ Discover new product lines or service offerings
➡️ Connect more deeply with your local community
Remember, your customers are experiencing “tariff fatigue” on top of years of inflation. They’ll appreciate your honest communication and creative solutions that help them continue providing the best care for their pets within their budget constraints.
While we can’t control global trade policies, we can control how we respond to them. With strategic planning, transparent communication, and a focus on delivering value, you will adapt and continue to serve the customers who depend on you.
If you need more support navigating these challenging times, consider joining one of our Pet Boss Nation® programs. We’re here to help you leverage everything you can to be successful through whatever comes your way!
More resources you’ll find helpful:
📍 Damon Oates does some small business tariff math in this helpful video.
📍 Stay Up to Date on the Latest News at the White House
📍Episode 182 of the Pet Boss Podcast| Tariff Impact: What Every Pet Business Owner Needs to Know NOW
