On September 9, a major professional services firm in Austin organized an event aimed at C-suite leaders and local executives to discuss the current state of global trade, tax policy, and planning. The event addressed how businesses are adapting to significant changes in tariffs and explored the interconnected nature of tax and global trade planning.
The event came as tariff rates have reached levels not seen in almost a century, with some tariffs now as high as 50% on metals and 25% on cars and car parts. After a presentation explaining these changes, Taylor Sisson, EY Austin Office Managing Partner, and Michael Heldebrand, Tax Partner in the firm’s Global Trade practice, led discussions with attendees about the challenges they face and potential opportunities.
Attendees received practical guidance on how evolving tax and trade policies are affecting supply chains and pricing strategies. The session also focused on building confidence among business leaders during uncertain times.
The EY team presented various possible future scenarios regarding tariffs. One scenario involved continued tariffs between the US and China while the EU and other allies work with the US to limit sensitive exports to China. Another scenario described the US imposing additional tariffs independently while negotiations with key partners like Japan, India, and Australia stall. These discussions helped attendees understand how different outcomes could impact pricing decisions, supply chain management, legal obligations, and compliance risks.
Speakers emphasized that companies should take proactive steps rather than waiting for further developments. Recommendations included reviewing agreements with vendors and customers to ensure clarity and adaptability; verifying customs bonds to manage possible clearance delays; analyzing import/export data; modeling tariff impacts using Automated Commercial Environment (ACE) data; and updating customs classifications.
Michael Heldebrand highlighted several strategies: “Whether it’s optimizing customs valuation, bifurcating dutiable and non-dutiable products, or flagging related-party imports for reconciliation, Taxes & Tariffs showed that proactive beats reactive every time.”
Recent survey data from EY-Parthenon shows that most CEOs plan to change their supply chains over the next 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 already started reshoring operations, with 93% planning to accelerate this process within 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 more information about corporate tax developments or resources for calculating tariff impacts on businesses, visit https://taxnews.ey.com/register/.
The views reflected in this article are those of the author and do not necessarily reflect those of Ernst & Young LLP or other members of the global EY organization.
