Tariffs—Are Your First Cost Models Ready?

With significant new tariffs rolling out and negotiations changing by the day, importers are facing a lot of uncertainty. That doesn’t mean you have to be unprepared. Now more than ever, building and updating first cost models for tariffs is key to making informed decisions and protecting your margins.

Now is the time to build flexibility into your inventory cost models:

• Forecast landed costs under multiple tariff scenarios.

  
  

• Clearly separate and document non-dutiable charges so you don’t end up overpaying duties.

  
  

• Revisit your Incoterms to see how they affect your duty liability.

  
  

• Consider alternative sourcing plans for high-risk SKUs.

  
  

• Build cost models that let you pivot quickly if new tariffs are announced.

  
  

No one knows exactly what will stick or how long these changes will last, but shippers who prepare for different outcomes are the ones best equipped to protect their margins when the rules shift.