On September 9, a major professional services firm in Austin organized an event focused on the current landscape of global trade, tax policy, and planning. The event gathered senior executives and strategists to discuss how businesses are managing geopolitical changes and increasing tariff rates.
The discussions centered on understanding recent tariff increases, with some tariffs reaching 50% on metals and 25% on cars and parts. Taylor Sisson, EY Austin Office Managing Partner, and Michael Heldebrand, Tax Partner in the Global Trade practice at EY, led conversations about these challenges and potential strategies for businesses.
Attendees explored possible future scenarios for tariffs. One scenario involved the US and China maintaining mutual tariffs while the US works with allies to restrict sensitive exports to China. Another scenario suggested the US might act alone by imposing more tariffs and encountering difficult negotiations with countries like Japan, India, and Australia. These exercises highlighted the impact of tariffs on pricing, supply chains, legal issues, and compliance risks.
Participants were advised to review their business agreements for flexibility and clarity due to possible customs clearance delays. They were also encouraged to analyze import/export data using Automated Commercial Environment (ACE) tools and revisit customs classifications.
The event stressed proactive measures such as optimizing customs valuation or separating dutiable from non-dutiable products as effective responses to evolving trade policies.
Data from the EY-Parthenon CEO Outlook Survey indicated that most CEOs plan to adjust their supply chains within three to five years—71% in the US (up from 54% in 2024) and 77% in Europe (up from 61%). Additionally, 69% of US manufacturers have started reshoring operations, with 93% intending to accelerate this trend over two years.
“You can see some key trends already emerging in how companies are responding to tariffs, but there’s a chance these numbers will be very different next quarter,” said Heldebrand. “That’s why it’s important to take a proactive but flexible approach to your tax and trade policy — so you can adapt to what the future will bring.”
For further information on corporate tax developments or calculating tariff impacts on business operations, readers are directed to https://taxnews.ey.com/register/.
The article notes that its views do not necessarily represent those of Ernst & Young LLP or other members of the global EY organization.
