Global economy trade wars analyzing tariffs and government policies for market insights in modern business

Avoiding the tariff ‘ripple effect’

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CFOs must assess tariff impacts on pricing and supply chains to prevent small disruptions from becoming major crises


As global trade tensions continue to escalate, CFOs are facing mounting pressure to navigate the financial and operational complexities of tariffs. In his latest piece for CFO Dive, Al Paul from EY explores how the “ripple effect” of tariffs can quietly erode profitability and disrupt supply chains if left unchecked. This article offers a timely lens into how finance leaders can proactively assess and mitigate these risks before they swell into a tsunami of unintended consequences.

From pricing strategies and supply chain realignment to tax implications and capital investment decisions, tariffs have a multifaceted impact on corporate operations. Paul emphasizes the importance of scenario planning, compliance readiness, and cross-functional collaboration – especially as new trade policies and legislative changes like the “One Big Beautiful Bill Act” reshape the economic landscape. CFOs must not only manage direct costs but also anticipate the cascading effects on earnings, deal valuations, and global tax exposure.

 

Whether you're a finance executive, tax strategist, or supply chain leader, this article is a must-read for understanding how to future-proof your organization against tariff volatility. Click through to explore actionable insights and learn how to turn today’s trade challenges into tomorrow’s competitive advantage.

 

Reprinted with permission from CFO Dive.

Summary 

CFOs must assess how tariffs impact pricing, supply chains, and strategic planning to avoid compounding financial risks. Scenario planning should include tax implications, compliance, and global policy shifts. A proactive, holistic approach helps companies manage risks and identify opportunities in an unpredictable trade environment.

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