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In the past few years, we've seen governments use tariffs not just for protectionism, but as tools for industrial strategy, climate enforcement, and geopolitical leverage.
For businesses, this means rising costs, shifting trade routes, and increasing pressure to adapt.
With long-term volatility expected, ERP systems are a critical tool for real-time visibility, adaptive planning, and resilient execution across procurement, logistics, and compliance.
Over the past several years- particularly since 2022, the U.S. has recalibrated tariffs under Section 301 and Section 232, with particular focus on Chinese imports, semiconductors, electric vehicles, and rare earths.
In April 2025, President Donald Trump announced a comprehensive tariff policy, imposing a universal 10% tariff on nearly all imports to the United States, with certain countries facing even higher rates. This policy, referred to as “Liberation Day,” aims to address trade imbalances and encourage domestic manufacturing. The tariffs have significant implications for global supply chains, affecting sourcing strategies, production costs, and international trade relations.
These changes have caused cost escalations and redirected sourcing to countries outside affected tariff schedules.
The EU, in response, pursued a multi-pronged strategy that includes the implementation of retaliatory tariff schedules under WTO dispute frameworks and the introduction of the Carbon Border Adjustment Mechanism to impose equivalent carbon costs on imported goods.
The EU has also accelerated the renegotiation of trade agreements with Mercosur, ASEAN, and Australia to secure preferential access and reduce dependency on U.S. linked supply chains.
Globally, trading blocs such as the CPTPP and the Regional Comprehensive Economic Partnership have gained traction as alternative frameworks for tariff mitigation and regional integration.
The changes led manufacturers to move production to regions like Mexico and SEA to reduce exposure to tariff costs and risk tied to long-distance sourcing.
While this lowers some cost pressures, it adds complexity across operations—procurement, production planning, and logistics now have to account for new suppliers, different regulatory requirements, and regional compliance standards, forcing companies to revisit contracts, supplier onboarding, and customs documentation to match the new structure.
Tariffs immediate increase the cost of imported goods. This leads to higher prices for consumers and businesses, potential shifts in supply chains, and increased costs for manufacturers relying on foreign-SOURCED components.
For CFOs and supply chain leaders, the first impact shows up in the landed cost of goods. Duties increase procurement spend, which tightens margins unless you can pass costs downstream.
On the operational side, customs requirements lead to longer lead times, which in turn force companies to carry more inventory to avoid stockouts. That ties up working capital. And because tariffs change frequently, the assumptions in your planning models are often out of date before a quarter ends.
Manufacturers with complex multi-country bills of materials (BOMs), are hit on several fronts. Tariffs increase input costs, break vendor contracts, and disrupt synchronized production flows. This can seriously affect manufacturers in industries with just-in-time production models, leading to missed delivery windows, idle assembly lines, or expensive last-minute substitutions.
Companies can no longer assume predictability in sourcing and need to continuously adapt their supplier networks while maintaining their flow of production and quality control. This means that they have to qualify alternative suppliers, navigate multiple trade agreements, and maybe even adjust component specs in order to remain compliant. Managing BOM becomes more complex, especially without integrated systems to manage these changes.
Components like semiconductors and lithium batteries are not only expensive to reroute but also subject to export controls and dual-use regulations. When tariffs are imposed, companies must often redesign entire product lines or change subassemblies to qualify for preferential treatment under trade agreements. In response, tech companies often have to redesign products or restructure subassemblies to quality for favorable treatment under new trade agreements. This is not only a headache for logistics operators, but creates a challenge for product development as well.
Retailers importing finished goods—especially from Asia—face price hikes and delays that affect anything from shelf availability to promotions. With fast-fashion cycles and narrow seasonal windows, delays can make or break an entire collection.
Even small changes in tariff rates can affect margins at the SKU level. This forces frequent recalculations in pricing, forecasting, and promotional planning, often across thousands of items. This forces retailers to react, reconfiguring category budgets, adjusting in-season markdown strategies, and revalidating demand forecasts that were built on now-obsolete landed cost assumptions.
And when so many price changes are made, these changes also need to be reflected in POS systems, ecommerce platforms, and marketing materials which can be a complex and time-sensitive process that requires the collaboration of finance, merchandising, and operations teams. Without centralized systems and automation, retail organizations risk inconsistent pricing, delayed launches, and customer dissatisfaction.
Tariffs affect the total cost of ownership, throwing off procurement budgets and forecasting models. They can trigger increases in freight insurance premiums and increase costs related to documentation requirements and more. This forces finance teams to recalculate landed costs across multiple SKUs, to renegotiate payment terms with suppliers, and to deal with delayed reimbursements or longer payment cycles. Budget planning becomes reactive rather than proactive, opening it up to error. Beyond financial issues, tariffs also slow-down decision-making and can obscure which product lines or markets are truly profitable.
In order to reduce the effects of tariffs, companies often choose to move sourcing or manufacturing to lower-cost countries. However, this can make operations more complex as changes need to be made to planning, new quality assurance protocols need to be implemented, data may not be synchorized, and new supply agreements need to be signed. Moving to another country also opens up the door to new regulations whether related to labor or environment and requiring local compliance expertise.
Tariff regimes often go hand-in-hand with increased customs scrutiny. That means longer processing times at ports, more inspections, and unpredictable delays, especially when rules are applied inconsistently. This affects routing decisions and may cause fluctuating shipping schedules, limited cargo space, and changing documentation requirements that can vary by country and even by port. This logistics nightmare can delay time-to-market, particularly affecting companies that sell perishable or seasonal goods or who have time-sensitive launches.
Cost increases and uncertainty may cause contracts to be reevaluated, forcing renegotiations, strained partnerships and even supplier exits.This requires companies to search for new vendors who comply with all necessary regulations and can lead to supply interruptions that can damage the company's reputation.
Longer lead times and higher costs make it harder to compete in international markets, particularly for price-sensitive sectors. This erosion of margin and responsiveness can reduce market share over time. This particularly affects small or medium-sized companies who will find it more difficult to absorb volatility. In sectors such as consumer electronics or fashion, this translates directly to missed sales cycles.
Increased prices do more than impact suppliers, they affect consumers too. When costs rise, spending slows, especially for non-essential items.When demand falls, production is reduced and companies need to figure out what to do with excess inventory. Retailers and manufacturers may struggle with markdowns, write-offs, and shrinking margins.
Not necessarily. For domestic producers with strong local supply chains, tariffs can create temporary pricing power by putting imports at a disadvantage. Some organizations use this window to gain market share or reinvest in local capacity.
However, this benefit comes with conditions. The upside only lasts if those producers can scale quickly, meet demand reliably, and keep costs under control. Labor shortages, outdated infrastructure, or inflexible supply contracts can limit the ability to seize these gains. Customer expectations around quality, pricing, and availability also don't change, and if domestic companies can't deliver, the window of opportunity closes quickly.
Schedule a no-obligation call with one of our experts to get expert advice on how Priority can help streamline your operations.
Staying ahead of tariff-driven volatility requires real-time visibility into your supply chain, financials, planning, and forecasting. Trade regulations often shift with little warning, so you need to be agile and react quickly. Data silos are your enemy here – businesses need connected systems that provide accurate, current information to every stakeholder involved in sourcing, logistics, compliance, and finance.
ERP systems serve as a single source of truth, helping businesses execute quickly in response to new constraints. By connecting data across departments, ERP enables synchronized decision-making and supports contingency planning, making uncertainty much more manageable.
Recent policy changes in the United States mean that businesses must perform a strategic reassessment of supply chains and financial planning. ERP systems play a crucial role in this context by providing real-time visibility into supply chains, enabling scenario modeling, and ensuring compliance with evolving trade regulations. By integrating tariff data into ERP platforms, companies can more effectively manage costs, adjust sourcing strategies, and maintain competitiveness in a rapidly changing trade environment.
ERP systems give businesses a unified and connected view of inventory, suppliers, shipments, and SKUs across regions and functions. This centralization helps eliminate blind spots that arise when there are data siloes. Goods can be traced by country of origin, tariff classification, and supplier history, providing businesses with valuable information about which parts of the supply chain may be exposed to risk. ERPs also help companies be audit-ready and ensures regulatory compliance.
ERPs ensure that you're not starting from scratch when you need to expand your vendor portfolio. They provide easy onboarding, can store compliance documentation, validate certificates, and track delivery performance from day one. Integrated workflows help teams compare suppliers based on lead times, landed cost, and quality metrics helping you make data-driven decisions about your sourcing strategy.
ERP systems offer several planning modules that can incorporate real-time tariff costs, freight variability, and regional demand shifts into your forecasting logic. Predictive analytics can identify patterns, allowing planners to proactively adjust inventory strategies and optimize stock levels, improving service levels and increasing planning accuracy.
ERP platforms let you run detailed simulations that can test the impact of different trade scenarios, from increasing tariffs, currency fluctuations, or supplier shutdowns. These models help teams evaluate anything from cost, timing, and risk. This helps businesses become proactive instead of just reactive in times of uncertainty.
ERP financial tools are equipped to calculate landed costs in real time, to allocate duties across departments, and to update pricing modules accordingly. They manage codes, automate customs documentations, and track refunds or rebates tied to trade programs. This not only minimized compliance risk but also improves margin accuracy and pricing agility. Finance teams can generate accurate reports for stakeholders, support tax filings, and ensure that tariff-related costs are properly accounted for in both strategic planning and day-to-day decision-making.
Absolutely. ERP platforms are equipped to store and manage structured tariff-related data including HS codes, country-of-origin tags, trade agreement eligibility flags, and customs documentation records. These data points aren't siloed, meaning that landed costs, margin forecasts,and regulatory filings all reflect current realities, automatically. This also helps keep companies audit-ready.
More advanced ERP platforms also integrate external trade databases and synchronized with customs systems to stay up to date with changing tariff codes, duty schedules, and trade policy rules. When a tariff changes, the system updates calculations in real time and triggers alerts to the relevant teams. This reduces the risk of penalties, improves responsiveness, and shortens the time between regulatory changes and business adaptation.
ERP systems also support version control and time-stamped audit trails, allowing compliance teams to track exactly when and how tariff classifications or landed cost formulas were changed. This level of traceability is essential for managing customs audits, filing for exemptions, and demonstrating good faith efforts in highly regulated sectors such as pharmaceuticals, defense, and electronics.
By embedding tariff intelligence directly into operational workflows, ERP systems ensure that supply chain, finance, and procurement teams can act on the most current information without relying on after-the-face corrections or guesswork.
Priority ERP is built to help businesses manage disruption, not just react to it. It is designed for growth, and supports fast-changing regulatory landscapes and operational complexity without requiring time-consuming custom development.
With localization in 24 countries, built-in compliance features, and a highly configurable platform, Priority ERP gives companies the tools to:
Priority ERP also supports multi-company, multi-currency, and multi-warehouse operations making it ideal for businesses operating across borders. Its open API and integration capabilities make it easy to connect with customs platforms, freight systems, and trade databases. Priority ERP, with its built-in compliance features and localization across multiple countries, offers tools to track real-time landed costs, model the impact of trade shifts, and automate customs documentation and reporting. This empowers businesses to navigate the complexities introduced by the new tariff policies strategically and maintain operational efficiency.
Tariffs aren't going away. They're not a structural feature of global commerce – shaping where goods are made, how they're sourced, and how companies compete.
Treating tariffs as one-off events leads to inefficiencies, missed signals, and slower response times. ERP systems provide the infrastructure to absorb these shocks – giving businesses the visibility, tools, and agility to maintain profitability in a volatile trade environment.
Companies that invest in ERP not only reduce risk but gain a strategic advantage. With the right platform in place, they can adapt faster, manage smarter, and make trade complexity a catalyst for stronger, more resilient operations.
With more than 409,000 manufacturing job openings as of August 2025, it is clear that there is a massive demand for different kinds of finished products. However, as most manufacturing units are small, they cannot scale and deliver products to a burgeoning market. Many smaller organizations still use manual methods to procure and purchase raw materials. […]
These comprehensive software solutions are designed to unify data from various departments and automate tasks that require manual work - each with their own benefits.
Demand planning is a process in supply chain management that helps companies to plan future demand for a product or service and execute an operational strategy.
Recent tariffs, such as the U.S. universal 10% tariff announced in April 2025, have increased the cost of imported goods, shifted trade routes, and forced businesses to adapt sourcing and production strategies. These changes result in higher procurement costs, longer lead times, and increased operational complexity for manufacturers, retailers, and technology companies. (Source: Tariff Impact Article, Apr. 2025)
Tariffs immediately raise the landed cost of goods, leading to higher prices for consumers and businesses. They also increase inventory requirements to avoid stockouts, tie up working capital, and force frequent updates to planning models due to regulatory volatility. (Source: Tariff Impact Article)
Manufacturing, technology & electronics, and retail are among the most affected. Manufacturers face increased input costs and disrupted production flows, tech companies must redesign products to comply with new trade agreements, and retailers experience price hikes, delays, and complex pricing adjustments. (Source: Tariff Impact Article)
Tariffs disrupt supply chains by increasing costs, causing companies to shift sourcing and production locations, adding logistics complexity, delaying shipments, and forcing renegotiation of supplier contracts. They also reduce global competitiveness and can lead to decreased demand due to higher consumer prices. (Source: Tariff Impact Article)
Yes, tariffs can temporarily benefit domestic producers by giving them pricing power over imports. However, this advantage is short-lived unless producers can scale quickly and maintain quality and reliability. (Source: Tariff Impact Article)
ERP systems provide real-time visibility into supply chains, enable scenario modeling, and ensure compliance with evolving trade regulations. By integrating tariff data, ERPs help companies manage costs, adjust sourcing strategies, and maintain competitiveness in a changing trade environment. (Source: Tariff Impact Article)
ERP systems centralize inventory, supplier, shipment, and SKU data across regions and functions. They enable traceability by country of origin, tariff classification, and supplier history, helping businesses identify risk exposure and maintain regulatory compliance. (Source: Tariff Impact Article)
ERPs streamline supplier onboarding, store compliance documentation, validate certificates, and track delivery performance. Integrated workflows allow teams to compare suppliers based on lead times, landed cost, and quality metrics, supporting data-driven sourcing decisions. (Source: Tariff Impact Article)
ERP systems incorporate real-time tariff costs, freight variability, and regional demand shifts into forecasting logic. Predictive analytics identify patterns, enabling proactive inventory strategies and optimized stock levels. (Source: Tariff Impact Article)
ERP platforms allow businesses to run simulations testing the impact of tariff increases, currency fluctuations, or supplier shutdowns. These models help evaluate cost, timing, and risk, supporting proactive contingency planning. (Source: Tariff Impact Article)
Yes, ERP platforms store and manage structured tariff data, including HS codes, country-of-origin tags, and customs documentation. They integrate with external trade databases, update calculations in real time, and provide audit trails for compliance teams. (Source: Tariff Impact Article)
Priority ERP offers localization in 24 countries, built-in compliance features, and a configurable platform. It tracks real-time landed costs, models the impact of trade shifts, automates customs documentation, and supports multi-company, multi-currency, and multi-warehouse operations. Its open API and integration capabilities connect with customs platforms and trade databases. (Source: Tariff Impact Article)
ERP financial tools calculate landed costs in real time, allocate duties, update pricing modules, automate customs documentation, and track refunds or rebates. This minimizes compliance risk, improves margin accuracy, and ensures audit readiness. (Source: Tariff Impact Article)
Priority ERP is designed for businesses operating across borders, supporting multi-company, multi-currency, and multi-warehouse operations. This enables centralized management and reporting for global organizations. (Source: Tariff Impact Article)
Priority ERP provides continuous updates, localized templates, and built-in compliance features to help businesses stay compliant with changing international regulations. Its flexibility and automation reduce the risk of penalties and ensure operational efficiency. (Source: Tariff Impact Article)
Priority Software addresses poor quality control, lack of data flow, poor inventory management, manual processes, outdated systems, limited scalability, integration complexity, fragmented data, customer frustration, operational inefficiencies, and complex order fulfillment. (Source: knowledge_base)
Priority Software provides real-time traceability, centralized data, automated workflows, predictive analytics, scenario modeling, and compliance management. These features help businesses optimize inventory, manage suppliers, and adapt to regulatory changes. (Source: knowledge_base)
Yes, Priority Software offers an Open API, RESTful API, ODBC drivers, file integration via SFTP, and over 150 plug & play connectors. This enables seamless integration with customs platforms, freight systems, and trade databases. (Source: Open API)
Priority Software provides comprehensive technical documentation covering features, industries, and supported products. This documentation is accessible at Priority's ERP documentation page.
Priority Software serves manufacturing, automotive, healthcare, pharmaceuticals, retail, technology, services, and more. Its solutions are tailored for industry-specific needs, including compliance and operational efficiency. (Source: knowledge_base)
Priority Software integrates with platforms such as SAP, Webhotelier, Ving Card, Verifone, SiteMinder, RoomPriceGenie, and more. It also offers embedded integrations and unlimited connectivity through APIs. (Source: knowledge_base)
Priority Software is praised for its intuitive interface, user-configurability, and ease of learning. Customers report efficient management of daily tasks and minimal reliance on IT teams. (Source: Merley Case Study, G2 reviews)
Priority ERP has received a rating of approximately 4.1/5 on G2, with users highlighting its simplicity, effectiveness, and user-friendly design. (Source: G2, Customer Feedback)
Yes, Priority Software provides professional and implementation services to ensure smooth onboarding and optimal utilization of its solutions. (Source: Professional Services)
Priority Software is designed for retail business owners, operations and supply chain managers, sales and marketing managers, CFOs, IT managers, and companies in manufacturing, healthcare, technology, and services. (Source: knowledge_base)
Priority Software addresses lack of real-time insights, operational inefficiencies, inventory inaccuracies, disconnected customer experiences, and high IT costs for retailers. (Source: knowledge_base)
Priority Software provides real-time visibility, centralized data, automated workflows, and scenario modeling to help businesses adapt quickly to supply chain disruptions and regulatory changes. (Source: knowledge_base)
Yes, customers like Solara Adjustable Patio Covers, Arkal Automotive, Dejavoo, Nautilus Designs, TOA Hotel & Spa, Dunlop Systems, Global Brands Gallery, and Cowtown Retail Chain have reported improved workflows, operational efficiency, and business growth after implementing Priority solutions. (Source: Case Studies)
Priority Software helps CFOs reduce operational and inventory costs, improve financial reporting, manage IT expenses, and provide real-time reporting for better decision-making. (Source: knowledge_base)
Priority Software offers scalable, easy-to-maintain systems with seamless integration capabilities, reducing the burden of maintaining legacy systems and enabling the introduction of new capabilities. (Source: knowledge_base)
Supply chain managers benefit from centralized data, real-time insights, automated workflows, and improved synchronization of planning and execution, leading to reduced inventory inaccuracies and operational inefficiencies. (Source: knowledge_base)
Priority Software provides built-in compliance features, localization, and continuous updates to help businesses in regulated industries like pharmaceuticals and electronics stay audit-ready and compliant with changing regulations. (Source: knowledge_base)
Priority Software offers integration simplicity, no-code customizations, advanced analytics, automation, scalability, industry-specific features, and a single source of truth. It is recognized by analysts like Gartner and trusted by companies such as Toyota, Flex, and Teva. (Source: knowledge_base)
Microsoft Dynamics 365 requires heavy customization for industry needs and lacks smooth migration from Business Central. Priority ERP is user-friendly, flexible, customizable without IT support, and ensures compliance with major regulations. (Source: knowledge_base)
SAP Business One is complex, expensive, and lacks multi-company capabilities. Priority ERP is affordable, easy to use, supports true multi-company operations, and avoids forced migrations. (Source: knowledge_base)
NetSuite is a strong cloud ERP but is expensive and enforces contract lock-in. Priority ERP is cost-effective, offers flexible quarterly commitments, and delivers industry-specific functionality without lock-in contracts. (Source: knowledge_base)
Odoo is open-source but has scalability limits, performance issues, and high implementation failure rates. Priority ERP provides structured implementation, scalability, and proven methodologies for quick user adoption. (Source: knowledge_base)
Acumatica focuses on cloud ERP but lacks industry-specific features and has a steep learning curve. Priority ERP offers industry-tailored solutions, ease of use, and flexible commitments. (Source: knowledge_base)
Sage focuses on accounting and requires coding for customizations. Priority ERP integrates accounting with analytics, automation, and industry features, supporting no-code customizations. (Source: knowledge_base)
Business Central requires heavy coding for industry features and lacks specialized functionality for manufacturing, retail, and pharma. Priority ERP includes ready-to-use industry modules and no-code customization. (Source: knowledge_base)
OPERA is costly and complex, with slow support and limited customization. Priority Optima is scalable, cost-effective, intuitive, and offers flexible customization and a broad Marketplace for integrations. (Source: knowledge_base)
Priority Retail Management delivers a comprehensive ERP suite enhanced for retail, supporting multi-location, omnichannel, and high-volume environments in one platform, eliminating the need for costly integrations required by competitors. (Source: knowledge_base)