Expert Insights: Navigating Political Change - DTC Supply Chain Strategy for 2025

As the political landscape shifts in 2025, DTC brands face growing uncertainty around tariffs and supply chain dynamics. But which protective measures truly deserve immediate attention, and how can brands turn potential disruption into opportunity?

We asked our network of DTC financial experts to share their strategic insights on navigating these challenges - in this latest edition of Finaloop's DTC Finance Insider's Club.

The question was:

In the face of economic uncertainty and political changes (e.g., new administration), how can DTC founders protect and grow their businesses in 2025?

The Answers:

1)  The Power of Supply Chain Redundancy

"DTC brands should focus on building supply chain redundancy, particularly through strategic partnerships with domestic manufacturers.

"While overseas manufacturing often offers better margins, having domestic backup suppliers can protect against potential tariff impacts and supply chain disruptions.

"The key is to start small - identify your highest-margin or most critical SKUs and establish relationships with US-based manufacturers who can produce them, even at a slightly higher cost. This creates a valuable insurance policy against global trade uncertainties."

Colson Myers | Founder & Fractional CFO, Gestalt Strategic Finance

2) The Strategic Advantage of Position Analysis

"The first thing you need to do is understand whether you are likely to be better or worse off than your peers under a scenario in which tariffs are implemented.

"If your competitors have mostly domestic supply chains and you are an importer, you're likely to be relatively worse. The inverse is also true.

"If you are likely to be a beneficiary of tariffs then there are a number of actions you could be taking. First, anticipate that some of your competition could be exiting the market - either temporarily or long term.

"Be prepared to increase your production volumes and prime your supply chain for the same, so that you can take advantage of supply gaps.

"If you're on the other side of the fence, and likely to be adversely impacted, then my advice is to avoid the temptation to stockpile. Whilst this may delay the inevitable cost-hit, it also introduces significant risks - including higher storage fees, interest costs, and potential inventory spoilage."

Nate Littlewood | Founder & Fractional CFO, Future Ready

3) The Practical Approach to Supply Chain Resilience

"For DTC brands under $15M ARR and scaling fast, it's inefficient to invest heavily in 'what if' scenarios around tariffs. Instead, brands should focus on strengthening supply chain fundamentals to remain resilient:

"First, diversify suppliers and fulfillment centers to reduce dependence on a single manufacturer or region.

"Second, negotiate better payment terms to improve cash flow flexibility and lock in volume discounts.

"Finally, optimize inventory efficiency by maintaining a buffer stock while avoiding excess inventory that ties up cash.

"Instead of reacting to speculation, brands that build resilience now will be prepared for any economic shifts, tariffs, or supply chain challenges."

Jordan Benjamin | CEO & Advisor, OmniFi Partners

4) The Foundation of Cost Intelligence

"Start with accurate cost tracking on a per SKU level, you can't plan and adjust if you don't have the correct costs allocated to each product - don't just average freight and customs. This foundational step is crucial before implementing any strategic changes."

Richard Starkey | Founder, CronosNow

5) Finaloop's Take:

"As the administration is still in its early days, and the dust hasn't really settled, it is hard to know which way the winds will blow. With that said, two major possible impacts on eCom could be closing of TikTok (if that happens) and large tariffs.

"Regarding TikTok, it is important to stay on top of updates and consider diversifying more, and there could also be room for arbitrage, as CAC for example went down significantly when everyone thought they were closing.

"Regarding tariffs, it is still too early to know, but assuming China will be singled out, it may pay to look into other areas where you can manufacture, or 'park' your items in, before importing them to the US."

Jacob Becker | Head of Ecosystem Education, Finaloop

Need help implementing these strategies for your DTC brand? From real-time bookkeeping for ecommerce business to dedicated ecommerce accounting services, book a short consultancy call with one of Finaloop's ecommerce accounting experts.