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: So how do import tariffs impact your business? Let's look at a few areas with the most at stake, in terms of import tariff impact: Cost of goods sold (COGS)
Capital equipment
Annual budget planning
Cost of Goods Sold (COGS)
The value of your supply chain in large part depends upon the cost of goods sold or COGS of each of the products within that supply chain. The value of your COGS also drives: Supplier pricing and negotiations
Inventory value
Profit margin
When you work with suppliers who have production facilities outside your country, you should make sure that you consider import tariffs as part of their price quotes. The generally accepted purpose of import tariffs is to attempt to level the playing field of domestic products—especially as those domestic products face competition from low cost manufacturing locations. A 5 percent import tariff on teddy bears (approximately), however, rarely drives the price up so much that it discourages the ongoing importation of plush toys. In most cases, a nominal import tariff is considered when you compile your cost of goods. For example, if you buy Product A from a low cost manufacturing country for $1 and you calculate that it costs you ten cents to ship Product A from your low cost manufacturing country to your own, you know that your cost of Product A is actually $1 plus 10 cents. And your supply chain pro's realize and will tell you that Product A has a 5 percent import tariff, so you need to add five cents to that.