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: How Import Tariffs Will Impact Your Business
Supply Chain Management Small Business
How Import Tariffs Will Impact Your Business
Import tariffs are levied against products imported from one country to another
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Gary Marion wrote about supply chain and logistics for The Balance Small Business. With over 20 years of experience, he is the director of manufacturing at Providien. Read The Balance's editorial policies
Gary Marion
Updated April 22, 2019
Import tariffs— which are also called customs, import duties and import fees —are taxes levied against products imported into one country from another country. Both your business and your supply chain are impacted by import tariffs if you use imported materials (either as part of what you sell to customers or as part of your capital equipment) or if you export any products to other markets. If you export products to other markets/countries, then the import tariffs that impact your business aren't paid by you—per se—but by whomever buys your goods. 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.