Title: How Import Tariffs Will Impact Your Business
Headings: How Import Tariffs Will Impact Your Business
How Import Tariffs Will Impact Your Business
Import tariffs are levied against products imported from one country to another
Cost of Goods Sold (COGS)
Inventory Value
Profit Margin

Content: The value of your company is largely based on the value of your inventory (along with capital assets, intellectual property, brand value, etc.). If you've paid an incremental 5 percent or 10 percent for import tariffs, those are real dollars that should be added to your company's value. Profit Margin
Your finance folks should have a general ledger account for import tariffs. Your supply chain folks will be able to tell you what values to put into the import tariff general ledger account. Import tariffs are an important factor when considering profit margins. Import tariffs are not immovable objects, however, and they have been known to change quickly and unpredictably. When import tariffs are raised, that has an impact on the importer and also the country exporting that product. Rising import tariffs are ostensibly used to make domestic products more competitive but can have more global consequences —as they have an impact the broader economy (they typically drive domestic prices higher) and can kick off trade wars (the exporting country is likely to retaliate in some fashion).& nbsp; Import tariffs are an important cost driver in a global supply chain and sudden changes in those tariffs can have unintended consequences to supply chain costs.