Cross-border Tax Talks

Tariff Tango: What’s next for global business? 

Doug McHoney (PwC’s International Tax Services Global Leader) is joined by Kristin Bohl, a Partner in PwC’s Customs and International Trade Practice. Kristin previously served as a judicial law clerk at the U.S. Court of International Trade. Doug and Kristin discuss the rapidly evolving trade and tariff landscape, focusing on the recent executive orders imposing new tariffs on Canada, Mexico, and China under the ‘America First’ trade policy. They break down the impact of tariffs on industries such as automotive, pharmaceuticals, retail, and technology, and cover strategies that businesses can deploy to mitigate costs. Key topics include the authority of the US President to impose tariffs, the role of trade deficits in tariff policy, and the use of tariffs as a foreign policy tool. They also explore potential retaliatory measures from US trading partners, the impact on global supply chains, and short to long-term strategies for businesses to adapt to the new tariff regime. 

Timestamps:

• 00:05 – Introduction to the podcast  
• 01:15 – The latest tariff announcements from the Trump administration 
• 02:00 – What is a tariff? Why do governments impose tariffs? 
• 03:25 –  The America First Trade Policy: What does it cover and why does it matter? 
• 06:35 – Reciprocal tariffs: How the US is looking to equalize trade barriers? 
• 09:15 – What is the connection between tariffs and discriminatory tax policies like Pillar Two? 
• 9:55 – Example of the fluid tariff environment: What was the Colombia tariff dispute and how was it resolved quickly? 
• 11:25 – Canada, Mexico and China tariffs: The role of executive power and International Emergency Economic Powers Act (IEEPA) authority 
• 14:25 – The impact of tariffs on the automotive industry and cross-border supply chains 
• 16:50 – What are the President’s trade powers and what can Congress do? 
• 22:05 – Steel & aluminum tariffs: Their origin, expansion, and impact 
• 25:05 – What is duty drawback and what does it mean for business? 
• 25:40 – What about the rest of the world? Should the EU and Southeast Asia be concerned? 
• 27:40 – What are the impacts on the Pharmaceutical, Life Sciences & MedTech sectors: Should they prepare for a major tariff shift? 
• 29:30 – Retail, consumer goods, and semiconductor industries: Are they impacted? 
• 31:20 – How are technology companies impacted by the announced tariffs? 
• 32:30  - How are China, Canada and Mexico responding to the tariffs? 
• 36:05  - How are the EU and its Member States responding?  
• 37:40 – What are the short-term, mid-term and long-term strategies that company tax and trade teams should consider to prepare for tariffs? 

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