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Tariffs Are Changing—Here’s How to Protect Your Bottom Line
Major shifts in U.S. trade policy are underway—and they’re already impacting the cost of doing business. A new executive order released in April 2025 imposes a baseline 10% tariff on most imported goods, with higher rates possible depending on the country and product category. If your business relies on international suppliers, this isn’t just a headline—it’s a direct hit to your cost structure, financial forecasts, and strategic planning.
As your accounting partner, our role is to help you adjust with confidence. Here’s what you need to know—and how we can help protect your margins, keep your business in compliance, and position you to adapt quickly in a shifting trade environment.
1. Higher Import Costs Are Squeezing Cash Flow
What’s happening: Tariffs raise the landed cost of goods. For many businesses, that means thinner margins—or the tough decision to raise prices.
What it means for you: Even a 10% tariff can materially affect your COGS and cash flow. Without a plan, you may find yourself overextended, especially if you carry inventory or operate on tight margins.
How we help:
Analyze your new cost structure
Build budget scenarios based on variable tariff rates
Identify opportunities to preserve margin and free up working capital
Now’s the time to stress-test your cash flow model before it becomes a crisis.
2. Compliance Just Got More Complicated
What’s happening: Tariff costs aren’t just operational—they have implications for inventory accounting, financial disclosures, and tax reporting.
What it means for you: If you’re capitalizing inventory, the added costs may affect how and when expenses hit your books. If you're subject to audit, improper reporting could raise flags. And if you operate across borders, transfer pricing and international compliance become even more complex.
How we help:
Accurately classify and track tariff-related costs
Ensure compliance with inventory valuation and reporting rules
Adjust your tax strategy to reflect changing expense timing and structure
Keep transfer pricing aligned with global tax requirements
We'll help you stay audit-ready, up-to-date, and confident in your reporting.
3. Planning in a Volatile Environment Requires Better Forecasting
What’s happening: Tariff rates are not static—and policy shifts can happen quickly. That makes long-term planning a moving target.
What it means for you: Financial planning, pricing, and supply chain decisions are harder to get right when the rules may change next quarter. Without built-in flexibility, you risk overspending—or missing out on cost-saving pivots.
How we help:
Build rolling forecasts with adjustable inputs
Run best- and worst-case scenarios based on evolving policy
Help you assess suppliers, pricing strategies, and sourcing options
We’ll give you the numbers and the insight to make confident decisions—no matter what comes next.
4. Thinking About Reshoring? There Are Tax and Budget Implications
What’s happening: Some businesses are considering a shift back to U.S.-based manufacturing to reduce exposure to trade disruptions.
What it means for you: While moving production domestically may reduce long-term tariff exposure, it comes with startup costs—and potential tax benefits.
How we help:
Model the cost vs. benefit of reshoring or regionalizing operations
Identify federal and state tax credits or deductions
Structure your investment in a tax-efficient way
Before you make a move, let’s map out the full financial picture together.
Now’s the Time to Get Proactive
You don’t control trade policy—but you can control how your business responds. With the right financial strategy, you can absorb costs, stay compliant, and adapt with agility.
Let’s talk about how these changes affect your business—and what you can do to stay ahead.
Contact our office today to schedule a planning session. We’ll help you navigate these tariff shifts, manage risk, and protect your bottom line.
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Rose Tax & Financial
Cedar Crest, New Mexico 87008
Sat: 10:00am to 2:00pm
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