Tariffs Return to Center Stage: What U.S. Manufacturers—and Consumers—Need to Know

On April 2, 2025, President Donald Trump declared a new phase in American trade policy, enacting a series of sweeping tariffs on a wide range of global imports. Touted as a move to reassert American economic sovereignty, the tariffs—announced on what the administration called “Liberation Day”—have reignited concerns across the manufacturing sector and among consumers who are already feeling the pinch of inflationary pressures.

While tariffs are not new to U.S. policy, their scale and unpredictability this time around are markedly different. For American manufacturers, particularly those deeply embedded in international supply chains, the implications could be far-reaching.

The Manufacturing Sector: A Double-Edged Sword

Manufacturers sit squarely at the crossroads of this tariff shakeup. On the one hand, tariffs are designed to level the playing field by making imported goods more expensive, thereby giving domestic producers a competitive edge. On the other, the globalized nature of modern manufacturing means that few companies operate in isolation.

As Tom Hood, executive vice president at the AICPA & CIMA, noted in Accounting Today, many companies are being forced to revisit their entire operational strategy. “CFOs are telling us that they’re approaching this like another COVID-level disruption—one that demands swift, forward-looking financial analysis and agile scenario planning,” Hood said.

Indeed, the complexity of the current tariff landscape is posing serious challenges. “This is a more complex tariff environment than most companies have experienced in the past,” said Charles Clevenger of UHY Consulting. From sourcing raw materials to navigating customs compliance, manufacturers must now layer trade policy uncertainty into their already complex operational models.

Reshaping the Supply Chain

For manufacturers, a key area of focus will be supply chain management. Companies must quickly assess where their materials are coming from, whether alternative suppliers can be sourced, and how much these changes will cost. Those who rely on just-in-time inventory models, or who source parts and materials globally, will need to weigh the financial impact of shifting supply chains against the volatility of staying the course.

Companies are increasingly turning to their accountants and financial consultants to model various “what-if” scenarios, helping guide decisions on whether to absorb costs, pass them along to consumers, or restructure operations altogether. In some cases, businesses are opting for reshoring strategies—bringing portions of their production back to the U.S.—though such moves carry significant upfront investment.

As Tom Hood of the AICPA & CIMA noted, “The ability for companies to address questions from their C-suite and stakeholders is critical. Every business is in a unique position, but they all need a firm grasp of their supply chain and cost structure to make informed, forward-looking decisions.”

A Call for Strategic Readiness

In today’s volatile economic environment, preparation is paramount. For manufacturers, the path forward lies in strategic agility—reassessing supplier relationships, shoring up compliance practices, and recalibrating financial forecasts. For consumers, the key is awareness and adaptability in the face of potential cost increases.

At Porte Brown, we continue to advise clients across the manufacturing spectrum on how best to prepare for the weeks and months ahead. Whether it’s evaluating the financial impact of tariff changes, ensuring customs compliance, or restructuring supply chain models, businesses don’t have to navigate this uncertainty alone.

Consumers Caught in the Middle

While the manufacturing sector bears the immediate brunt of tariffs, consumers are not immune to their ripple effects. A recent USA Today report highlights how experts remain skeptical about the long-term benefits of these trade policies. One key concern: rising prices on everyday goods.

In fact, a Reuters/Ipsos poll cited by USA Today found that 73% of Americans believe these new tariffs will increase consumer prices. From electronics to clothing to household essentials, the downstream impact of import taxes is expected to manifest at the checkout line, potentially exacerbating inflationary trends that have already strained household budgets over the past few years.

Despite assurances from the administration that “short-term pain” will yield long-term economic gain, economists remain cautious. As one trade policy expert noted, these effects rarely remain confined to the targeted sectors. Rather, they tend to cascade throughout the broader economy, affecting employment, investment, and consumer confidence.