CFOs & Tariffs: Offset Strategies | Grant Thornton

Regarding the current uncertainty within the economy, various CFOs across the country are quickly changing their approach to strategies to protect their businesses, according to a newly released survey from Grant Thornton, a provider of audit and assurance, tax, and advisory services. 

About 46% of CFOs are feeling “pessimistic” about the U.S. economy, and the same percentage are adjusting to supply chain issues to reduce the impacts of tariffs. Meanwhile, 53% of advisors are increasing their sales and marketing spending, which is a 13-percentage point increase compared to the previous quarter, and similarly, 51% are “highly” focused on customer acquisition and retention, the survey stated. 

The survey, which collected feedback from over 260 industry professionals over the second quarter of the year, signaled a significant shift towards supply chain adjustments and technology utilization to mitigate the impact of tariffs. 

“CFOs are relieved that, for example, tariffs on imports from China aren’t 145%, but they certainly can’t put their feet up and relax,” Paul Melville, national managing principal of CFO Advisory for Grant Thornton Advisors, said. “Whether it’s a 90-day tariff reprieve or court rulings and appeals, the unpredictability of the economic environment doesn’t help finance leaders with long-term planning.” 

About 39% of CFOs are implementing the usage of technology to reduce costs for their clients, and 35% are raising prices on their services, the survey found. 

In a survey by the firm, which was conducted during the first quarter of last year, it found that 34% of CFOs are “very optimistic” about the U.S. economy, while only 12% of CFOs expressed pessimism.  

As industry professionals and executives begin to shift their focus towards various strategies and planning solutions to offset the tariffs pushback and reduce costs, the push towards technology and AI-backed services is increasing at record-high numbers.

About 77% of industry experts say they are incorporating the use of artificial intelligence and are reporting at least a “two-fold return” on their AI investments, which is up from 68% last quarter. 

“Until we have certainty on the treatment of key items such as the research and capital expenditures, companies will need to weigh their investment decisions carefully,” Dana Lance, national tax solutions leader at Grant Thornton Advisors, said.

The post CFOs Navigating Techniques for Offsetting Tariff Tensions, Grant Thornton Says  appeared first on Connect Money.