Key strategies for businesses impacted by US trade tariffs – and how accountants will play a leading role

Leading accounting body CPA Australia has issued advice to Australian businesses feeling the effects of recently announced US trade tariffs.

The nine key strategies focus on assessing the potential business impact of the new tariffs, conducting a financial health check and building up cash reserves, as well as seeking professional advice to explore new opportunities.

Gavan Ord, CPA Australia’s Business Investment and International Lead, says the accounting profession will play a leading role in supporting clients and organisations through these turbulent economic waters.

“Any shock to global trade conditions presents a wide range of consequences and challenges for businesses to overcome,” he said. “During periods of instability and uncertainty, planning, flexibility and professional guidance become essential. 

“Seeking professional support from trusted advisors is critical in informing business leaders and decision-makers on how to adapt to the sudden shock of new trading environments.”

CPA Australia’s nine key strategies for businesses impacted by US trade tariffs are summarised as:

1. Assess your exposure
2. Conduct a financial health check
3. Maintain profit margins by passing on tariff costs and/or reducing your costs and improving efficiencies
4. Diversify your markets and suppliers
5. Adjust your product
6. Strengthen cash flow
7. Market your unique selling proposition
8. Seek professional advice
9. Look for new opportunities 

Mr Ord says accountants will be able to help businesses identify opportunities to not only manage with the new US tariffs, but to seek growth elsewhere. He also urges businesses to access help and resources from government agencies like Austrade.

“For many businesses, the changing economic environment is providing an impetus to diversify. It’s possible to minimise risks and seize opportunities through operational efficiencies and market diversification,” he said.

“Accountants have knowledge and experience of working in a diverse range of sectors and will be ready to support businesses in setting a new course for growth and stability. 

“Resilience and adaptability are key characteristics of accounting, and many businesses will need both in the months ahead.”

For further information on the nine strategies, see the CPA Australia website.

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