On September 9, EY, the largest professional services firm in Austin, organized an event that gathered C-suite leaders, local executives, and strategists to discuss current issues in global trade and tax policy. The event aimed to address the geopolitical landscape businesses are facing in 2025, evaluate the impact of tariffs, and highlight the interconnectedness of tax and global trade planning.
Tariff rates have reached levels not seen in nearly a century, with some as high as 50% on metals and 25% on cars and their parts. Following a presentation on these changes, Taylor Sisson, EY Austin Office Managing Partner, and Michael Heldebrand, Tax Partner in EY’s Global Trade practice, engaged attendees in conversations about challenges and opportunities arising from these developments.
The event provided practical insights into how recent shifts in tax and trade policies are affecting supply chains and pricing strategies. Attendees also explored possible future scenarios for tariffs. One scenario involved ongoing tariffs between the US and China while the US collaborates with allies like the EU to restrict sensitive exports to China. Another scenario considered the US acting alone by imposing more tariffs amid difficult negotiations with partners such as Japan, India, and Australia.
These discussions emphasized the importance of agility for businesses navigating today’s trade environment. Participants were encouraged to review contracts with vendors and customers for adaptability, assess customs bonds for potential clearance delays, analyze import/export data using Automated Commercial Environment (ACE) tools, and update customs classifications.
EY leaders advised companies to take proactive steps such as optimizing customs valuation processes or identifying products subject to different duties. They highlighted that being prepared is better than reacting after changes occur.
According to recent findings from the EY-Parthenon CEO Outlook Survey, most CEOs plan to adjust their supply chains within three to five years—71% in the US (up from 54% in 2024) and 77% in Europe (up from 61%). In addition, 69% of US manufacturers have started reshoring operations; 93% intend to increase this pace over 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 corporate tax updates or calculating tariff impacts on business operations, visit https://taxnews.ey.com/register/.
The views reflected in this article are those of the author and do not necessarily represent Ernst & Young LLP or other members of its global organization.
