On September 9, EY, Austin’s largest professional services firm, held an event focused on global trade and tax policy. The gathering brought together C-suite leaders, local executives, and strategists to discuss the current challenges businesses face in 2025.
The event addressed recent increases in tariff rates, which have reached levels not seen in nearly a century. Some tariffs now stand at 50% for metals and 25% for cars and their parts. Taylor Sisson, EY Austin Office Managing Partner, and Michael Heldebrand, Tax Partner in the Global Trade practice, led discussions about these changes and how companies can respond.
Attendees were presented with various scenarios that could affect global trade. In one scenario, the US and China maintain mutual tariffs while the European Union and other allies work with the US to limit sensitive exports to China. Another scenario described the US acting alone by implementing more tariffs and facing challenging negotiations with partners like Japan, India, and Australia. These scenarios highlighted potential impacts on pricing strategies, supply chains, legal risks, and compliance.
EY leaders emphasized that businesses should move from worrying about tariffs to taking action. Recommendations included reviewing agreements with vendors and customers for adaptability, ensuring customs bonds are sufficient for possible clearance delays, analyzing import/export data using Automated Commercial Environment (ACE) data, and reassessing customs classifications.
Proactive measures such as optimizing customs valuation or separating dutiable from non-dutiable products were also discussed as ways companies can better manage risks associated with shifting trade policies.
Data from the latest EY-Parthenon CEO Outlook Survey showed that most chief executive officers plan to change their supply chains within 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 started reshoring operations, with 93% planning to accelerate this trend over the next 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 on navigating corporate tax environments or calculating tariff impacts on businesses visit https://taxnews.ey.com/register/.
The article notes that these views reflect those of the author and not necessarily Ernst & Young LLP or other members of its global organization.
