Shifting tariffs and regulatory changes are driving up costs and creating financial unpredictability. While economists debate the effects, one thing is clear: understanding and mitigating the financial impact on your cost of goods is paramount.
Take control, reduce risk, optimize and transform spend with data, strategic accounts payable, sourcing, procurement, and expense management solutions. Organizations operating internationally must prepare for the impact tariffs have on their financial operations.
Finance teams around the world are feeling the pressure, but accounts payable can help.
This guide explores how tariffs and trade shifts are upending AP—and what savvy finance leaders can do to stay ahead. Discover how to guard your margins, boost visibility, and turn your AP function into your secret weapon.
Traditional ERP systems often fall short when it comes to providing a clear and immediate understanding of tariff impacts. Because tariffs are typically handled by customs brokers and not directly reflected on supplier invoices, extracting the necessary data for insightful analysis can be cumbersome and time-consuming. This leaves finance teams struggling to answer critical questions about rising costs and supplier risk.
Do you have high-risk suppliers that are most susceptible to trade policy changes and price volatility?
Rapidly identify and evaluate new suppliers in lower-tariff countries
Leverage concrete cost data to strengthen your negotiating position with existing suppliers
Reduce supply chain risk with visibility into supplier performance and location-based exposure
Procurement plays a strategic role in managing tariffs. Engage with trade and compliance teams to build a cohesive trade strategy.
Employee expenses are often reactive levers companies pull in response to tariff-driven cost pressures or trade strategy shifts. Offset supply chain costs by managing employee-related expenses like travel and entertainment. With Expensya by Medius you get full transparency into expenses so you can stay ahead of costs.
Tariffs often hit imported goods up front, meaning companies pay more immediately. Take a proactive approach to managing accounts payable to reduce the tariff impact.
Extend payment terms with suppliers to minimize cash flow impacts
Prioritize payments based on landed cost + tariff burden, not just invoice date
Align payment timing with duties due at customs
Verify accuracy of duty charges and Harmonized Tariff Schedule (HTS) codes
Use early payment discounts to offset increased landed costs due to tariffs
Shifting tariffs and regulatory changes are driving up costs and creating financial unpredictability. With swings in tariff policies, global trade is unpredictable. Adapt to shifting global trade and tariff policies with an integrated spend management solution. Use this resource to learn how you can cope.
Review your current supply chain to get a view of your current operations so that you have a baseline.
Identify how tariffs apply to different product categories and countries. See which products or which territories have the greatest impact to your financial operations.
Analyze strategies to mitigate tariff impact such as moving production to a country with more favorable trade agreements, or work with customs experts to legally classify goods under Harmonized Tariff Schedule (HTS) codes with lower duties.
Negotiate with suppliers as suppliers in high-tariff countries may absorb part of the cost or adjust prices. Identify and evaluate new suppliers in lower-tariff countries.
