The Trump Administration announced sweeping tariffs on imports from nearly 90 countries. The tariffs, which have been a moving target, are expected to range from 10% to more than 100%. These measures aim to address trade imbalances and are expected to have significant implications for U.S companies. See the current U.S. Harmonized Tariff Schedule (HTS) Information here.
Understanding Tariffs and Their Implications
Tariffs are levied by the U.S. Customs and Border Patrol on imported goods and are paid by the U.S. importer of record. The tariff is applied to all goods, whether it is a finished product or parts and materials that go into a finished product. The U.S. tariff policy is intended to protect domestic industries from unfair foreign trade practices and attempts to address trade imbalances between countries. In the short term, tariffs can also lead to increased costs for businesses reliant on global supply chains, affecting pricing, profitability, and strategic planning.
Specific Impacts to Consider:
- Increased Operational Costs: The new tariffs directly raise the cost of imported materials and products, negatively affecting profit margins.
- Supply Chain Disruptions: Companies may need to reassess their supply chains to mitigate tariff impacts, which could involve finding alternative suppliers or adjusting logistics strategies.
- Cash Flow Challenges: The added financial burden from tariffs can strain cash flow, which would increase the need for careful financial planning and projections.
How BRC Can Support Your Business
BRC is prepared to support clients in navigating these challenges through:
- Transfer Pricing Analysis: Evaluating and adjusting intercompany pricing strategies to align with the new tariff landscape.
- Strategic Consultation: Coordinating with trusted advisors for specialized guidance on supply chain optimization, cash flow modeling, or other financial planning and analysis.
- Ongoing Insights: Providing timely updates and analyses to keep you informed as trade policies evolve.
If you’re concerned about how these tariff changes could affect your business, please contact your BRC advisor directly. We’re here to help you navigate this complexity and can support your efforts to mitigate potential impacts. Additionally, you may learn more about BRC’s Transportation & Logistics services.
Steve Amigone Consulting Practice Leader
As BRC’s Consulting Practice Leader, Steve leads a talented team focused on driving growth, enhancing client service, and investing in eight strategic service lines: Outsourced Accounting & Advisory Services, R&D, International Tax, Federal Tax Consulting, Transfer Pricing, Valuation, Quality of Earnings, and Data Analytics & Data Automation. He also serves on the Firm’s Executive […]
The information contained in this article is for information purposes only and should not be relied on when making any business, legal, or other decisions. This information may be updated without notice and may or may not contain the most current information related to this topic.