The ability of multinational businesses to manage and mitigate the impact of tariffs on their operations will play a critical role in determining corporate success or failure. Businesses bringing components into the United States from related parties under transfer pricing arrangements may struggle to adjust.
In many cases, long-term contracts set the prices between U.S. businesses subject to the new tariffs and their customers. This could make it difficult to recover costs in the short term. Affected businesses should develop and implement strategies to adapt.
