Accounting firms can help businesses navigate tariff chaos: Grant Thornton
Accounting firms are well-placed to help businesses navigate evolving tariff impacts, Grant Thornton has said.
As of 22 April, the US has imposed 10 per cent tariffs on most countries, including Australia, and a 145 per cent tariff on Australia’s largest trading partner, China.
While these trade barriers are set to cause ongoing supply chain disruption, accounting firms could help businesses minimise the negative impacts of tariffs on their operations through a number of strategic avenues, Grant Thornton said.
“For Australian and New Zealand exporters, these tariffs bring challenges but also present an opportunity for innovation within the supply chain,” the firm said in a release.
For example, businesses could leverage available free trade agreements and exemption schemes to reduce the tariff rates applied to their products, Grant Thornton pointed out. In this space, accountants have a key role in helping companies navigate complex country and product-specific trade agreements.
Grant Thornton added that accountants could advise on procurement, helping businesses negotiate volume-based price protections and explore low-tariff material substitutions to insulate them from tariff costs.
Accounting firms could also review companies’ supply chain optimisation and transfer pricing policies, and identify areas where businesses could reduce their tariff costs by adjusting their value chains.
As global trade policies evolved, Grant Thornton said accountants would play a key role in helping their clients maintain compliance with customs and ensure proper disclosure of transfer pricing adjustments.
The international trade environment has been changing rapidly, the firm stressed. For example, the US administration had called for an investigation into critical minerals and rare earth elements, which could affect trade patterns and economic stability in Australia and New Zealand over the medium term.
The final report would be expected by January 2026. The findings of the year-long investigation could have significant implications for global trade dynamics, Grant Thornton warned.
“The investigation could lead to new tariffs or trade restrictions on critical minerals, rare earth elements, and derivative products, potentially disrupting supply chains and increasing costs for exporters in these regions,” it said.
Grant Thornton added that the US’s escalating trade war with China would impact Australia’s economy.
“The broader impact on supply chains reliant on Chinese and other Asian manufacturing is significant. The US tariffs on Chinese imports will affect Australian exports of iron ore, coal, and copper, integral to Chinese manufacturing,” it said.
“This may result in ramifications for Australian commodity exports to China as US tariffs on Chinese imports indirectly impact Australian businesses.”
However, evolving tariff risks would provide both business challenges and opportunities, which accounting firms could help navigate.
“We can help your business reduce the impact of increased costs and supply chain disruptions, while also identifying competitive opportunities and synergies for optimisation and compliance requirements.”
