Tariffs and Supply Chain Disruptions: The CFO’s Role in Building Resilient Operations
- Robert Fiorella
- Jun 4
- 2 min read
Supply chains have always faced pressure—but today’s global landscape adds a whole new layer of complexity. From unexpected tariffs to shipping delays and geopolitical instability, companies are constantly being challenged to adapt. At the heart of that adaptation? The CFO.
In 2025, CFOs aren’t just handling budgets—they’re building resilience. Here’s how financial leaders are helping businesses stay ahead of global disruptions.
What Are Tariffs and Why Do They Matter?
Tariffs are government-imposed taxes on imported goods. While designed to protect domestic industries, they can dramatically impact costs, profit margins, and sourcing strategies.
Recent policy shifts—especially between major economies like the U.S. and China—have created uncertainty, forcing businesses to rethink their supply chain strategies.
The CFO’s Expanding Role in Supply Chain Strategy
CFOs are no longer just behind-the-scenes number crunchers. Today, they:
Collaborate with procurement and operations
Assess the financial impact of tariffs and supplier delays
Develop models for supplier diversification and cost analysis
Let’s break down how CFOs are stepping up in response to tariffs and disruptions.
How CFOs Help Navigate Tariffs and Supply Chain Risk
1. Financial Scenario Planning
CFOs use forecasting tools to model how tariffs could impact:
Cost of goods sold (COGS)
Product pricing
Gross margins
They also run worst-case and best-case scenarios so leadership can make fast, informed decisions.
2. Supplier and Sourcing Diversification
CFOs partner with ops leaders to:
Explore alternative suppliers in different countries
Balance cost, risk, and availability
Evaluate nearshoring or reshoring options to reduce dependency on high-risk regions
3. Cash Flow and Inventory Strategy
Tariffs and delays can tie up cash in inventory or impact working capital.
CFOs help optimize inventory levels to balance cost vs. risk
They build cash buffers and adjust payment terms to improve flexibility
When Should CFOs Step In?
Ideally, before a crisis. CFOs should be involved in:
Strategic sourcing decisions
Long-term vendor contracts
Business continuity planning
Their involvement helps align financial and operational goals so businesses don’t just react—they prepare.
Fractional CFOs: A Smart Move for Scaling Companies
Not every company needs a full-time CFO to navigate complexity. Fractional CFOs offer:
Broad experience
Strategic insights
Scenario modeling
Tech implementation
All without the overhead of a full-time exec.
FAQs
How do tariffs directly impact profitability?
Tariffs increase the cost of goods, which can shrink margins unless prices are raised or cost structures adjusted.
What’s the biggest risk in a disrupted supply chain?
Can a CFO really help with operations?
What tools should CFOs use to track global risks?
Comments