Tariffs Are Reshaping Business—Private Capital Strategies for Reshoring, Resilience, and ROI

Tzortzis Capital
Apr 3
4 min read

The Trump administration just reignited a high-stakes trade war. On April 2, 2025, a sweeping new tariff regime was announced—10% across the board on all imports, with even higher penalties for key trade partners like China (34%), Vietnam (46%), and the EU (20%) (Business Insider).

This isn’t just posturing. This is policy—and it’s already impacting business decisions from procurement to capital investment.

If you're running a business that depends on global supply chains, costs are going up. If you're looking to adapt, now’s the time to get strategic about how you finance your next move—because waiting is going to cost you more.

Industries in the Crosshairs

These tariffs will hit some sectors harder than others:

Automotive: Vehicles and parts imported from Japan, Korea, and Europe face 20–34% increases. Expect price hikes, margin pressure, or both.
Consumer Electronics: China supplies over 60% of the world’s electronics. A 34% tariff translates to potential cost increases of 15–25% on key inputs.
Heavy Manufacturing & Construction: Steel and aluminum from the EU and Asia just got more expensive. Expect materials costs to rise 10–12% in the coming months.

Supply chains that took years to optimize for cost are suddenly overpriced. And traditional lenders aren’t lining up to help you overhaul it.

The Banking Pullback Is Real

The capital markets aren’t stepping in to help mid-sized businesses either. Commercial banks are still tightening up—and fast.

Large banks approved just 14.6% of small business loan applications in early 2025, down significantly from pre-pandemic norms of 25–28% (Finli).
The ABA Credit Conditions Index dropped to 41.3 in Q1 2025, signaling that overall credit availability is expected to continue weakening in the coming months (ABA).
As demand for capital rises due to inflation, higher operating costs, and tariffs, banks are simultaneously tightening standards and increasing rates (Fastway SBA).

Even well-run companies with strong revenue and cash flow are finding it harder to get the working or growth capital they need. That’s where private credit steps in—and fast.

Private Credit Is the Smart Play Right Now

Private lenders are built for moments like this. Fast decisions, flexible terms, creative structuring.

Need to reshore production to the U.S.? Need to bulk order before tariffs hit your inventory? Trying to lock in capital for expansion while your competitors scramble?

Here’s how private credit is already filling the gap:

Asset-based lines to secure domestic equipment purchases
Inventory and trade finance to help importers get ahead of cost increases
Bridge capital for real estate or facility upgrades to bring production home
ESOP financing for owners taking advantage of reshoring trends to transition leadership

Reshoring: Not Just Talk Anymore

Big manufacturers aren’t waiting. Volvo Car AB just announced it will expand production at its South Carolina plant and add another vehicle line to avoid high tariffs on imported vehicles.

This isn’t speculation—it’s a direct response to tariff policy, and it’s expected to add hundreds of new U.S. manufacturing jobs.

They’re not alone. Another example of reshoring momentum in 2025 comes from Eli Lilly, which announced a $27 billion investment to expand U.S. manufacturing by building four new production sites. The move is aimed at reducing reliance on overseas suppliers and strengthening domestic pharmaceutical infrastructure. The expansion is expected to create over 3,000 permanent jobs and support more than 10,000 construction roles. Marketwatch

This isn’t a patriotic trend. It’s a business decision. Tariffs just made overseas cost models uncompetitive—and private credit is financing the pivot.

What Winning Companies Are Doing Right Now

✅ Auditing supply chains: Identifying dependencies in high-tariff markets and finding alternatives

✅ Securing working capital: Getting ahead of inventory shocks and supplier price increases

✅ Investing in domestic capabilities: Moving production closer to customers and closer to control

✅ Partnering with private credit firms: To finance upgrades, stabilize cash flow, and avoid being handcuffed by banks

This Is Evolving—Stay Sharp

This is not a one-and-done policy move. It’s an unfolding story.

Already, more than 50 countries have reached out to the U.S. to negotiate exemptions or revised terms on their tariffs. That means rates, conditions, and supply lines may shift significantly over the coming months.

If you're a business owner in an affected sector, now is the time to pay close attention. The decisions you make over the next quarter could define your competitiveness for years to come.

Why This Is a Time to Grow—Not Shrink

This isn’t just about survival—it’s about outmaneuvering the competition. While others freeze up, companies with capital access can buy market share, double down on domestic investment, and win customer loyalty.

If you’re thinking about waiting this out, think again. Tariffs are here. Costs are rising. Supply chains are shifting. And whoever moves fastest will win.

Tzortzis Capital: Built for This Moment

At Tzortzis Capital, we specialize in helping businesses like yours use private credit as a strategic lever. Whether you're a founder, CFO, or operator navigating this economic reset, we can help you structure the right capital solution—fast.

Let’s talk if:

You’re reshoring
You’re expanding
You’re buying
Or you just want to stop letting traditional lenders slow you down

Now’s the time to act—not react.

Sources: