New U.S. tariffs under IEEPA: Business impacts and next steps

The U.S. trade landscape has shifted again under the International Emergency Economic Powers Act (IEEPA), and the implications for manufacturers and other import-reliant businesses are real and immediate.

Effective April 5, 2025, the federal government has implemented a 10% tariff on all U.S. imports. This broad-based tariff was soon followed by targeted, higher tariffs — effective April 9 — for 57 countries with which the U.S. has significant trade deficits.

These higher tariffs are designed to be reciprocal: They reflect 50% of the foreign country’s tariff on U.S. goods, plus an added percentage to account for non-monetary trade barriers like quotas, regulatory hurdles and local content requirements.

Although sweeping in scope, the executive order does not apply to goods already covered under existing Section 232 tariffs (such as steel, aluminum, automobiles, auto parts and additional energy resources and critical minerals specifically identified), which remain in place.

Notably, Canada and Mexico were excluded from the April 9 reciprocal tariff list. However, businesses should not assume they are exempt — non-USMCA-compliant goods continue to face a 25% tariff under a prior IEEPA order issued in March.

These updates reflect a broader and ongoing recalibration of U.S. trade policy. Regardless of where your business falls in the supply chain, you’ll want to understand what’s changing and prepare accordingly.

Why IEEPA matters now

Trade policy shifts can often seem like distant, macro-level events — until they hit your margins, cash flow, pricing models and supply chain resilience.

These IEEPA tariffs come at a time when many manufacturers and distributors are still managing inflation, workforce constraints and a backlog of post-pandemic supply disruptions. New tariffs not only increase the landed cost of imported goods and materials, but also introduce new layers of operational and financial complexity.

For example:

• If your components originate in a country facing higher tariffs, are you confident your pricing reflects the new cost structure?
• Are any of your goods now subject to multiple overlapping tariffs?
• Do you know which country your goods originated in — not just where they were shipped from?
• Do you have the systems in place to trace, document and respond in real time?

Getting ahead of these questions is critical to mitigating risk and identifying where your business might gain a competitive edge.

Industries likely to be most affected by IEEPA

While nearly all sectors with global sourcing strategies will feel some impact, the ripple effects will vary.

• Automotive and transportation: The automotive industry was already navigating a 25% tariff on vehicles and select parts prior to the April executive order. These new IEEPA tariffs, layered on top of existing ones, make cost modeling and supplier negotiations even more complex.
• Industrial manufacturing: From precision components to capital equipment, any manufacturing business with cross-border vendors will need to map its exposure carefully. Companies that rely on imported tooling and subassemblies should reassess sourcing, pricing and margin protection strategies immediately.
• Consumer goods: For consumer-facing brands, imported materials or finished goods could create margin pressure — especially in price-sensitive markets. Tariff costs that cannot be passed on to the end user may result in reduced profitability or forced product reengineering.
• Technology and electronics: Many tech companies source circuit boards, chips and other high-value components from countries likely to be affected. Understanding how the new tariff layers interact with existing ones is essential for accurate forecasting and financial planning.

What businesses should do now about IEEPA

The following steps can help you understand your exposure and build a mitigation plan:

1. Map your supply chain.

Start by identifying the origin countries for all materials, components and finished goods you import. Go beyond your direct suppliers to understand the upstream flow of goods, including Tier 2 and Tier 3 vendors. If you haven’t recently conducted a supply chain risk analysis, now is the time.

2. Classify and validate items using the Harmonized Tariff Schedule.

Use the Harmonized Tariff Schedule to determine whether your products are subject to the 10% general IEEPA tariff, a higher country-specific tariff or an existing Section 232 tariff. Keep in mind that classification errors can lead to costly penalties and back payments.

3. Review tariff stacking risks.

Some goods may now be subject to multiple tariffs. For example, a piece of industrial machinery could be covered by both Section 232 and the new IEEPA tariff. Work with customs and tax professionals to help ensure you’re accounting for the right total duty and filing paperwork correctly.

4. Confirm country of origin — not just country of shipment.

Tariff rules are based on the country of origin, which may not match the country where goods are shipped from. For instance, a good shipped from Germany may have originated in China. This nuance matters and can determine whether you’re tariff-liable.

5. Update your cash flow projections.

Tariff costs may seem manageable in isolation, but when layered across many SKUs and vendors, they can quickly affect cash position. Build a 10-week rolling cash flow model that incorporates expected duty increases and margin compression.

6. Revisit pricing and quoting tools.

Make sure your quoting systems reflect new costs —and account for fluctuations. If you’re in the middle of long-term contracts, start preparing for renegotiations with accurate cost data.

7. Explore sourcing diversification

In some cases, it may be worth considering alternate suppliers in lower-tariff countries or increasing domestic sourcing. While these changes can’t happen overnight, now is the time to begin scenario planning.

IEEPA’s competitive edge — if you’re prepared

While these trade policy shifts introduce uncertainty, they also create opportunity.

U.S.-based manufacturers may now find themselves with a pricing advantage over international competitors — particularly in categories where foreign suppliers were previously undercutting domestic production.

For companies able to adjust quickly and strategically, the new IEEPA tariffs may help reclaim market share, shorten supply chains and strengthen customer loyalty.

How Wipfli can help

Join our upcoming webinar: To help business leaders stay ahead of these developments, Wipfli is hosting a live webinar on Monday, April 7, from 11 a.m.-12 p.m. CT. Wipfli partner Laurie Harbour and consultant Omar Nashashibi, founder of Inside Beltway, will break down:

• The latest U.S. IEEPA tariff landscape and what’s changed.
• How manufacturers can mitigate risk and stay compliant.
• Tactical steps to improve agility and resilience in the face of ongoing trade shifts.

Register now to reserve your spot.

Talk to our team: Navigating new IEEPA tariffs isn’t just a tax or compliance issue — it’s a strategic opportunity to make smarter decisions about sourcing, pricing, operations and growth. Whether you’re already feeling the impact or just starting to assess exposure, Wipfli can help.

Our professionals work with manufacturers, distributors and global businesses to:

• Interpret trade policy and apply it to real-world decisions.
• Build flexible financial models.
• Evaluate supplier relationships and risk.
• Maintain compliance and avoid costly penalties.

Let’s connect and turn today’s uncertainty into tomorrow’s advantage. You can find more information on our web page for regulatory, policy and tax changes for 2025.