For this year’s Green Book purchasing report, Hotel Business spoke with Jocelyn Lurie, VP, procurement, Throughline by IIG; Lori Patten, principal, Patten Purchasing LLC; Nicole Schmidt, founder/CEO, Source; and Eleanor Waddell, VP, strategic growth and business development, Avendra International. Here, they offer their thoughts on potential tariffs.

One of President Trump’s campaign promises was to raise tariffs on imported goods. If the tariffs are implemented, how do you think this will affect product purchasing moving forward?

Lurie: Our approach is to view this as both a challenge and an opportunity. We’re seeing a growing demand for a more diverse vendor pool as companies seek to mitigate risks associated with tariff-driven cost increases or supply chain disruptions, which provides us with an opportunity to turn our attention to sourcing domestically and from alternative regions.

Additionally, clients are showing a heightened interest in FF&E that prioritizes quality and durability. There’s a clear understanding that investing in better manufacturing standards and longer-lasting products can help offset initial costs. We expect this demand for higher-quality goods to increase, reshaping procurement priorities across the board. Our challenge is to help our clients adapt seamlessly, ensuring they stay ahead of these shifts without compromising value.

Patten: The impending tariff issue will definitely affect the procurement process and how ownership attacks each project moving forward. After the inauguration, there will most likely be a grace period until certain regulations are established within the new roles. In the past, we have used vendors from Canada and Mexico, and of late, those areas have been mentioned, as well as having stronger tariffs imposed with China and many other countries. So proper planning and budgeting ahead of time for these issues is paramount. Especially the lighting industry, which will definitely be affected if the new tariffs are implemented. Again, since this is still a moving target, proper budgeting ahead of time is key as we do not know the exact exposure to our clients, but knowing all costs ahead of time will definitely limit any surprises along the way. Hopefully, these new tariff regulations will push American products to the forefront which is the whole reason behind the initial tariff regulations.

Also, knowing where your products are produced now that many manufacturers have different factory locations is paramount. Partnering with a trusted logistic company going forward has helped us navigate the ins and outs of logistics, limited our freight cost exposure, aided in managing trans-shipments, determining port destination, rerouting freight trucking vs. rail, etc.

Schmidt: The impact depends on how broadly and aggressively tariffs are applied. New tariffs tend to create a multifaceted disruption across global supply chains that has an effect over several years. While no one’s crystal ball is clear, we foresee likely implications regarding higher prices, longer lead times and potential issues with ocean freight costs and availability. Other, harder-to-predict factors outside of manufacturing, like foreign government subsidies and currency adjustments, may also affect the dynamic. We will track new tariffs as a distinct budget item, hold appropriate contingencies for freight and work with clients and vendors to optimize budgets and schedules.

Waddell: Tariffs and the threat of tariffs create uncertainty, which can cause travelers, operators and investors to sit on the sidelines. Tariffs can impact inflation, causing costs to soar and impact supply lines by redirecting products.
Companies should plan ahead if possible and be prepared to identify alternate sources for products.

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