The rules of global trade just changed—and if your business relies on imported goods, your cost structure likely took a hit overnight.
In April 2025, a sweeping executive order imposed a baseline 10% tariff on most imports into the U.S. Depending on the country of origin and product type, rates could climb even higher. That’s not just a headline; it’s a direct impact on your bottom line. For inventory-heavy industries or businesses with tight margins, this could mean serious pressure on profits and cash flow.
At JS Morlu, we’re helping our clients across industries—from government contractors to healthcare providers—navigate this shake-up with confidence. Here’s how you can protect your margins, stay compliant, and plan proactively in today’s shifting trade landscape.
1. Tariffs Are Squeezing Margins and Cash Flow
What’s happening: Tariffs increase the “landed cost” of imported products. That higher cost flows directly into your Cost of Goods Sold (COGS), often shrinking profit margins.
Why it matters: Even a 10% hike in import costs can disrupt cash flow, particularly if you’re holding inventory or managing seasonal swings. Many businesses are now faced with the difficult choice of raising prices or absorbing the cost hit.
How JS Morlu helps:
- Conducting tariff impact analysis across your supply chain
- Creating dynamic budget scenarios based on varying tariff rates
- Identifying cost-saving strategies to preserve working capital
Pro Tip: Now’s the time to stress-test your cash flow models. We can simulate multiple economic scenarios to help you plan with clarity.
2. Compliance and Reporting Just Got Trickier
What’s happening: Tariffs aren’t just a supply chain issue—they affect accounting, tax reporting, and compliance. Businesses must adjust their inventory valuation and expense timing to reflect these new costs accurately.
Why it matters: Misreporting these changes could raise red flags during an audit. Improper capitalization or timing of tariff-related costs can affect your financial statements and tax filings.
How JS Morlu helps:
- Tracking and classifying tariff-related costs
- Ensuring GAAP-compliant inventory accounting
- Adjusting tax strategies to reflect new expense structures
- Supporting accurate financial disclosures and audit readiness
Our team ensures you stay compliant across borders—even if your sourcing strategy spans continents.
3. Forecasting in a Volatile Trade Environment
What’s happening: Tariff policies are anything but stable. A new administration or trade dispute could change rates again next quarter.
Why it matters: This uncertainty makes it harder to price products, negotiate with vendors, or commit to long-term plans.
How JS Morlu helps:
- Building rolling forecasts with adjustable inputs for tariffs
- Running best- and worst-case scenarios based on policy shifts
- Assessing supplier diversification and cost-pivot strategies
You need more than spreadsheets—you need a plan that bends, not breaks.
4. Considering Reshoring? Know the Financial Trade-Offs
What’s happening: Many U.S. businesses are exploring reshoring (bringing production back to the U.S.) to reduce exposure to foreign trade disruptions.
Why it matters: While this can reduce tariff risk, reshoring comes with higher startup costs—real estate, labor, and infrastructure—not to mention potential tax incentives that are often overlooked.
How JS Morlu helps:
- Comparing total cost of ownership for domestic vs. foreign production
- Identifying federal and state tax credits (e.g., Opportunity Zones, R&D)
- Structuring your reshoring investment for maximum tax efficiency
Whether you’re reshoring, nearshoring, or diversifying, we map the full financial picture before you commit.
5. Strategic Planning: Turn Change Into Opportunity
What’s happening: Businesses that adapt fastest will gain a competitive edge. Whether that’s rethinking suppliers, adjusting pricing, or revising contracts, the key is to stay nimble.
Why it matters: You can’t control trade policy—but you can control how your business responds.
How JS Morlu helps:
- Recommending pricing and sourcing adjustments based on tariff exposure
- Aligning your financial model with shifting regulatory environments
- Preparing you for audits, vendor negotiations, and strategic pivots
The best time to adapt is before you’re forced to. Let’s turn uncertainty into advantage.
Let’s Talk Strategy
Tariffs may be out of your control—but your response isn’t. With the right guidance, you can weather this storm and emerge stronger. At JS Morlu, we specialize in proactive, personalized strategies that help you stay compliant, optimize your financial structure, and preserve profitability.
Whether you’re a government contractor rethinking procurement, a nonprofit adjusting budgets, or a small business managing razor-thin margins—we’re here to help.
📞 Schedule a planning session today to navigate the impact of trade policy shifts with clarity and confidence.
