Tariffs are on everybody's minds these days. Here at ECRM, we're hearing lots of concerns from both retail and foodservice buyers and brands who are worried about how these tariffs will impact their businesses. 

However, these worries may be a bit overblown, according to Corey Hamilton, Founder & CEO of HRS Global, which offers logistics and supply chain services to manufacturers from around the world, placing them right in the middle of these tariff issues.

In this Q&A, recorded at ECRM's recent Private Label Sessions in Chicago, Hamilton shares why we shouldn't let the headlines boost our fears (watch the interview in the video below).

ECRM: For some context, can you give everybody an overview of HRS Global?

Hamilton: I'm the CEO and one of the owners of HRS Global, which has been around for several years. We do all the logistic and supply chain services for dozens of international companies to transport their products around the world. We do thousands of containers into the US from around 20 different countries, so we're very knowledgeable about the tariff situation right now. And what I'll say when I say knowledgeable, it's that the situation is transitioning constantly.

ECRM: So why shouldn't we be worried about tariffs? 

Hamilton: Don't panic, don't worry yet, because quite frankly it hasn't even close to being finalized. Most countries are going to end up with a 10% tariff over their normal tariff, and so that'll equalize you with other countries competing for it.

I'm constantly getting calls and messages from US companies because most of them source their ingredients from other countries. Guess what, guys? They have to pay the tariffs on all those ingredients as well. So their cost is going up too. So it's not just you in this boat; it's a big boat and there's a lot of people in it. The costs are going to be going up for everybody.

We need to have a little patience. Even American companies are going to be raising their prices. So outside of maybe China, you still have a chance to be very, very competitive. So I would say just try to chill out a little bit. Give it a little bit of time. Again, you're going to find out that it's not the disaster that appears to be from the start.

ECRM: That should make a lot of people feel a little more comfortable. Now, is there any situation that might happen where they should start to worry?

Hamilton: I would say in that if you're one of the countries that is—most countries are going to get to 10%, and because that's like the bottom-line tariff—if things stay the same, and maybe that'll change too, but if things stay the same, most countries can get the 10%. It's a very manageable situation.

If you're looking at things that are over 20% and it stays over 20%, I would say that that's going to be an issue, but still depends on what your product is. If it's a commodity or it's kind of unique—if you have products that are innovative, they're different, they're packaged different—you still have the chance to go ahead and be very successful in the US with them.

So I would say even if you have a tariff of 20 or 30%, there's still a chance to be very successful. It's just that you have to ask yourself, how do I make my line more different than our competitors? What kind of unique trait and attributes can I go ahead and give to it?

US retail customers love to have unique and innovative products. So make sure you provide them something that might have an extra claim where they can charge a little bit more and do something special with it.

I'll add one thing on that. Most retailers now have different tiers of quality with their brands. They have the everyday, which is typically national brand equivalent, and then they have a premium. They expect the premium brand to be better than those types—better maybe not just quality, but packaging, more protein, etc.—those type of attributes that you can make a claim on.

So you can still be successful. Just look at your product line, and if you want to go to the US, figure out a way to control cost, make sure they're manageable, get right partners—I’d say like ECRM and ourselves—and again, make your product so it's a little different than somebody else's.

Editor's note: RangeMe just launched its TariffSmart Sourcing initiative to make finding Made in the USA suppliers easier than ever with a new collection. Buyers can explore a diverse range of products from trade-friendly regions, support American businesses and enhance their inventory with top-quality goods. Browse the collection here.