Responding to Tariffs

Agility in a volatile regulatory environment

New and fluctuating tariffs and potential shifts in trade relationships are creating significant challenges for management teams. Supply Chain and Finance functions are pivoting to operate under greater volatility and uncertainty. While the direction, magnitude, and duration of tariffs remains unclear, companies need options and flexibility.  Protiviti offers the expertise to help you develop agility and navigate this period with confidence.

There are key areas of immediate focus for management to consider:

Cost fluctuations – The threat of supply chain disruptions will impact margins and knowing how to mitigate those impacts in a timely fashion is critical. It will involve deep dives into supplier contracts, legal reviews and options to diversify / modify pricing, delivery and logistics.

Inventory policy and capital management – It is important to re-evaluate inventory policies and working capital management strategies in light of potential cost increases.

Budgeting and strategic planning – Recalibrating budgets and forecasting amidst significant uncertainty will require having robust and flexible scenario planning capabilities.

Cash flow forecasting – Optimization of cash flow and having transparency into what levers to pull in the near and long term is increasingly important, driven by the need for additional cash for supply flexibility, investments or loan covenant compliance.

85% of AICPA members reported that tariff uncertainty influenced their business planning.
AICPA & CIMA 1Q25 Economic Outlook Survey
59% of AICPA members believe tariffs would negatively affect their businesses
AICPA & CIMA 1Q25 Economic Outlook Survey

How we’re helping clients

Data optimization and consolidation

Our team integrates data from different systems to provide clients with the reporting they need to make timely, fact-based decisions.

 

Scenario planning and forecasting

Our expertise in understanding key business drivers and developing and automating models provides management with the visibility to manage volatility.

 

Budgeting and strategic planning

We help extend detailed budgets into multi-year forecasts to confirm alignment with long-range investor goals.

 

Business planning & analysis

We offer subject matter expertise for immediate resource support to perform planning and analysis activities, strategic business decision support, and enhanced financial and supply chain reporting.

 

Cost containment

We deploy our cost containment strategies to identify and implement cost savings and drive performance for both short- and long-term goals.

 

Cash flow forecasting

We help design and develop accurate and comprehensive cash flow forecasting and modeling scenarios to assess the potential impact of working capital policies on cash.

 

Supply chain optimization and resilience

We help our clients navigate supply chain challenges, complex scenario analyses and mitigation of geopolitical flashpoints.

 
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