On September 9, Austin’s largest professional services firm hosted an event that brought together C-suite leaders, local executives and deeply knowledgeable strategists for an in-depth conversation about the state of global trade, tax policy and planning.

The objectives were clear:

• Discuss the geopolitical events and landscape that businesses are navigating in 2025.
• Help businesses calculate the impact of tariffs.
• Recognize the integrated nature of tax and global trade planning.

And the event arrived right on time.

Tariff rates are at levels we haven’t seen in nearly a century. For instance, some tariffs now reach 50% on metals and 25% on cars and their parts. After an engaging presentation that broke down these changes, Taylor Sisson, EY Austin Office Managing Partner, and Michael Heldebrand, Tax Partner in the firm’s Global Trade practice, talked with attendees about the challenges they’re facing and the opportunities available to them.

As a result, the event offered a grounded, practical look at how shifts in tax and trade are reshaping everything from supply chains to pricing strategies.

Most importantly, the event helped leaders become even more confident at a time of profound uncertainty. Below are some of the highlights from Taxes & Tariffs.

Crystal ball? Not quite. But close.

After breaking down the current state of tariffs, the firm looked to the future. The EY team walked attendees through a range of possible tariff scenarios, with each scenario carrying tangible implications for how businesses plan and respond.

In one scenario, the US and China maintain tariffs on each other, while the EU and other allies work with the US to limit sensitive exports to China. In another possible outcome, the US stands alone, activating additional tariffs and facing fractured negotiations with key partners, such as Japan, India and Australia.

Running through these potential paths helped attendees visualize the ripple effects of tariffs, from pricing and supply chain decisions to legal and compliance risks. Just as important, they underscored the need for agility and foresight in today’s trade environment.

Don’t wait. Act.

Taxes & Tariffs also made it clear that it’s past time for businesses to stop worrying about tariffs — and start acting instead.

That means reviewing vendor, customer and intercompany agreements to verify that terms are clear and adaptable. It also means checking whether your customs bond is sufficient to handle potential clearance delays — something that could become a real issue in the months ahead.

EY leaders encouraged attendees to dig into their import and export data, model tariff impacts using Automated Commercial Environment (ACE) data, and revisit customs classifications and country-of-origin designations. These steps can help your business respond quickly regardless of which future comes to fruition.

And remember: You have options.

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.

So, how are global companies responding?

According to the latest EY-Parthenon CEO Outlook Survey, the majority of chief executive officers are planning to alter their supply chains in the next three to five years — 71% in the US (up from 54% in 2024) and 77% in Europe (up from 61%). In fact, 69% of US manufacturers have already begun reshoring, and 93% plan to accelerate that pace over the next two years.

When discussing this data, EY Partner Michael Heldebrand said it best:

“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.”

Don’t miss a beat in today’s complex and rapidly changing corporate tax environment, visit https://taxnews.ey.com/register/ — and to calculate the impact of tariffs on your business, reach out to Michael.

The views reflected in this article are the views of the author and do not necessarily reflect the views of Ernst & Young LLP or other members of the global EY organization.