The Tariff Response Playbook – Quantifying the Cost of Tariffs

The tariffs on goods coming into the USA are creating great uncertainty regarding the cost of materials and product price inflation. Even if a tariff percentage is known, it can be difficult to quantify the impact on the cost to build or assemble a product across wide portfolio of SKUs. The Finance & Accounting function is an invaluable asset in assessing the costs associated with tariffs. In this article, I reveal how a team lead by your company’s Cost Accountant can identify the direct costs associated with tariffs on each product, create iterative scenario models that allow for different assumptions, and lay the groundwork for contingency action plans that allow for effective cost control ...