Tariff policy is changing – and treasury teams are in the crosshairs.
Proposed shifts in U.S. tariff policy are already sparking anxiety in boardrooms and supply chains alike. The uncertainty isn’t just a trade issue – it’s a treasury issue. Tariffs affect cash flow, supplier pricing, customer satisfaction, and forecasting accuracy. And when your job depends on predictability, volatility like this is more than inconvenient – it’s a risk multiplier.
Now more than ever, treasurers need to do what they do best: bring clarity to complexity. But in a tariff-fueled environment, you can’t do it alone. You’ll need stronger partnerships – with both suppliers and customers – to keep your organization resilient and responsive.
Tariffs Are Throwing a Wrench Into Treasury Operations
For treasury professionals, tariffs don’t just show up as headlines – they hit your forecasts, pricing models, and liquidity planning in very real ways. A single new tariff or rate change can:
- Inflate supplier costs with little to no warning. Suppliers may pass along new tariff costs without lead time, leaving treasurers scrambling to adjust budgets. Invoices may increase overnight, creating ripple effects throughout the supply chain and AP workflow. Treasury must be ready to quickly assess the impact and communicate implications to leadership.
- Disrupt AP and AR timing as invoices are delayed, disputed, or renegotiated. Tariff confusion can slow down supplier invoicing and trigger payment disputes. Customers may delay payments, challenge pricing changes, or delay orders, straining cash flow. Treasury needs to plan for these delays and build contingencies into working capital forecasts.
- Create confusion over who absorbs the extra cost – supplier, buyer, or end customer. Without clear contracts or pricing structures, determining cost responsibility becomes a battle. Treasury must step in to evaluate financial implications and propose fair, transparent solutions. Cross-functional collaboration between legal, procurement, and sales is essential.
- Undermine financial projections when assumptions are no longer valid. Assumptions used in cash flow models and earnings forecasts can break down with new tariffs. Treasurers must re-forecast using new scenarios, often without full clarity on timing or scope. Agility is key: treasury should prepare models to account for best-, base-, and worst-case outcomes.
- Leave treasury in the dark about how or when the impact of tariffs will hit. Tariff policies are often vague, politicized, and delayed in enforcement, making them difficult to plan around. Even when decisions are announced, details may take months to materialize. Treasurers must learn to act with imperfect information and update strategies in real time.
When tariffs strike without warning, treasurers can’t afford to sit back – because what starts as a policy change quickly becomes a pricing crisis, a forecasting failure, and a cash flow threat.
Don’t Go It Alone: Strengthen Supplier Relationships Now
Treasurers aren’t the only ones feeling the pressure of shifting trade policies.
Many suppliers are just as anxious about how tariff changes will affect their pricing and margins. That’s why now is the time to lean into transparency and partnership.
- Open a dialogue. Ask suppliers to walk you through how tariffs are impacting their cost structures and what changes they anticipate. Demonstrating a willingness to listen and collaborate sets the stage for more honest conversations. Shared information helps both parties plan better and reduces the chance of unpleasant last-minute surprises.
- Clarify terms. Treasurers should work with their suppliers to define when price adjustments will be communicated and under what conditions. Establish escalation clauses or notification windows so treasury teams can prepare for changes. Clear communication reduces billing disputes and gives treasury and finance leaders the foresight needed to manage cash flow.
- Explore flexibility. Negotiate new payment terms or delivery schedules that reflect current cost realities. Suppliers may be willing to trade faster payments for price concessions or offer temporary price holds. These conversations not only ease financial pressure but also build long-term goodwill between partners. Even small adjustments can create breathing room on both sides and open the door to more strategic collaboration in the future.
In times of tariff turmoil, your strongest asset isn’t just a forecast – it’s a supplier who picks up the phone, works with you on solutions, and sees your treasury team as a trusted partner, not just a payer.
Have the Hard Conversations With Customers
While you’re working with suppliers behind the scenes, don’t forget the people on the front lines – your customers. They may not care about tariff codes or foreign policy decisions, but they will notice if prices increase or service quality drops. Here are tips for engaging with customers.
- Be proactive. Don’t wait for customers to call you upset – reach out first and explain the context of the price changes. Frame the conversation around fairness and long-term partnership, not just passing along costs. Early communication gives customers time to adjust and fosters greater trust and can prevent confusion, frustration, or lost business.
- Acknowledge the complexity. It’s okay to admit that details around tariffs are unclear and evolving. Position your organization as transparent, responsive, and focused on minimizing disruption. Customers appreciate honesty more than vague or delayed communication.
- Focus on value. Remind customers of the reliability, quality, and service they receive – even amid pricing shifts. Highlight any steps your organization is taking to control costs and ensure continuity. Reinforce the long-term benefits of doing business with a stable, solutions-oriented partner – making price increases become easier to justify and accept.
- Offer flexibility where possible. Consider tiered pricing, extended terms, and bundled incentives for your most loyal or at-risk customers. Even small accommodations can make customers feel supported and help preserve relationships. Treasury and finance leaders should partner with sales and AR teams to find the right balance of risk and retention.
When pricing pressures mount, the treasurers who lead honest, value-focused conversations with customers will be the ones who retain loyalty, protect revenue, and strengthen relationships.
Treasury’s Role Has Never Been More Strategic
Tariffs are just the latest disruption in a long list of economic stressors. But they spotlight the growing importance of treasury as a strategic business partner. By building stronger supplier relationships and leading customer conversations with confidence, treasurers can help their organizations not just survive the turbulence – but navigate through it with clarity and control.
