What should finance see in a tariff sensitivity model?
How much detail would you include so finance can compare sourcing options without drowning in customs terminology?
All questionsTariffs
5 replies
- I'd show a base case and a few clearly labeled scenarios, with the changed assumption highlighted. Avoid presenting an uncertain duty rate as a forecast.
- Include units, customs value basis, currency and the estimated timing of payment. A percentage alone doesn't show the cash requirement.
- Keep trade remedies and other duties visible as separate reviewed inputs where applicable. One blended rate is easy to copy into the wrong product later.
- I'd add a short line for what the broker has confirmed and what remains open. That tells the decision-maker how much confidence to put in the comparison.
- Use the same delivery scope across suppliers. Otherwise finance might compare a factory price with a delivered quote and attribute the difference to tariffs.
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