Business Tariffs Updates

Struggling to stay on top of shifting tariffs that impact your business? With global trade policies constantly evolving, it’s tough to keep up. Stay informed with the latest key tariff updates in one centralized hub, so you can respond quickly to changes and make confident decisions for your business.

April 10, 2025

Navigating Tax Uncertainty Under the New Tariff Environment

Tariffs proposed by the Trump administration and the likely retaliation from trading partners have disrupted the global trading system that has underpinned the global economy for more than 60 years. Tariffs of uncertain magnitude and duration will increase international tax and transfer pricing challenges for many multinationals.

While continued uncertainty around tariffs makes it challenging for enterprises to determine the degree of supply chain changes, companies should still be prepared to respond to the reality of a high-tariff environment.

Continued uncertainty around tariffs may make it impractical to implement significant supply chain changes. Until there is more certainty regarding the long-term tariff and trade environment, you must still consider how to respond should a high-tariff environment become a reality.

Current tariffs are extremely broad, but generally, there is nuance in the rules, resulting in goods being either subject to tariffs or to exemptions.

• Source materials: Tariffs are applied to the value of the goods. Are there full or partial exemptions that apply to imported goods? How much of your underlying materials are U.S.-sourced?
• Transfer pricing: Do your existing transfer pricing policies and agreements cover how changing tariff costs are borne by the transacting parties? Will all additional costs simply be passed on to customers? Do internal and third-party policies need to be adjusted?
• Supply chains: Can supply chains be rerouted without negative knock-on tax effects or impact to operations? Consider moving production to a country with a more preferable tariff relationship with the U.S.
• Cost of goods sold (COGS): Are there any other non-product costs embedded in COGS that could be separate transactions, e.g., charges for IP not required to be part of COGS, service charges and management fees?
• Tech stack capabilities: Are existing ERP systems robust enough to handle multiple changes to inventory, COGS, pricing and standard costing that will result from changing tariffs?

Get the help you need with international tax, transfer pricing and strategy consulting services to get a holistic view of your supply chain as well as strategies for mitigating the impact of tariffs.