Tariffs and Transfer Pricing: Reshaping Global Supply Chains

What if tariff rates on China imports increase by an additional 15% over the next quarter?

Simulate the impact of a 15 percentage point increase in tariff rates on goods sourced from China across all product categories. Recalculate landed costs, identify suppliers most exposed to tariff increases, model sourcing diversification scenarios including Mexico and domestic alternatives, and quantify working capital requirements to absorb increased costs.

What if alternative suppliers in Mexico or Canada require 3-4 week longer lead times than current China sources?

Model the operational impact of sourcing diversification to Mexico and Canada with extended lead times of 3-4 weeks compared to existing China suppliers. Analyze safety stock requirements, inventory carrying cost increases, demand planning complexity, and potential service level impacts. Evaluate whether tariff savings offset additional logistics costs and inventory investment.

What if transfer pricing optimization reduces tax liability by 12% while tariffs increase landed costs by 18%?

Simulate a scenario where transfer pricing policy adjustments achieve a 12% tax savings but tariff increases create an 18% increase in landed costs across the supply network. Model the net financial impact across different sourcing regions and product lines. Determine whether transfer pricing gains offset tariff cost increases and identify which sourcing strategies deliver best total cost of ownership.