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Accounting ARC
With Liz Mason
Center for Accounting Transformation
President Donald Trump’s tariff announcement has sent shockwaves through the business community—and accountants are on the frontlines of the fallout.
In the latest Accounting ARC podcast, Liz Mason, CPA, and Ron Baker, CPA (inactive), analyze the implications of Trump’s decision to impose a 10% blanket tariff on all imports, alongside a dramatic 54% tariff on goods from China.
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“Tariffs are taxes—plain and simple,” says Mason, CEO of High Rock Accounting. “And businesses need to prepare for those costs to flow straight to consumers.”
The decision, justified under the International Emergency Economic Powers Act, aims to curb the U.S. trade deficit. Yet Baker, founder of the VeraSage Institute and radio co-host of the?www.VoiceAmerica.com show:?The Soul of Enterprise: Business in the Knowledge Economy, warns of potential unintended consequences. “Protectionism historically leads to retaliation, and that’s bad news for everyone,” he notes.
Both Mason and Baker stress the need for accountants to step up as strategic advisors. They urge firms to work closely with clients to reassess sourcing strategies, review pricing, and mitigate risks.
“Clients need clarity and options,” Mason says. “This is a prime opportunity for accountants to demonstrate their value.”
Baker adds, “The ripple effects of tariffs are often delayed. Accountants should monitor sectors like manufacturing and retail for early warning signs of broader economic stress.”
While the tariff escalation poses challenges, the hosts emphasize the opportunities it creates for agile, forward-thinking firms. Mason suggests helping clients diversify supply chains or explore domestic production incentives, while Baker highlights the chance to redefine client advisory services.
“In times of uncertainty, the firms that adapt fastest are the ones that thrive,” Mason says.
As global markets react and businesses scramble to adjust, Mason and Baker agree accountants will be essential guides through this volatile period.
8 Top Takeaways
- Tariffs are effectively taxes that increase business and consumer costs.
- Accountants must act quickly to advise clients on new financial strategies.
- Supply chains will face disruption and must be reevaluated.
- Businesses should prepare for potential recession risks.
- Accountants must monitor manufacturing and retail sectors closely.
- Client advisory services will become even more critical.
- Diversifying suppliers can help mitigate tariff impacts.
- Domestic manufacturing incentives may offer new opportunities.
- Agility and adaptability are essential firm traits.
- Accountants have a key role in helping clients navigate uncertainty.
Suggested Reading and Listening for Deeper Understanding
Baker references several influential books that he believes accountants should read to better navigate the impact of tariffs and the broader economic shifts they signal. He further suggests podcasts that can help accountants dive deep into consequences of tariffs, both intended and unintended.
- The Choice, Russ Roberts?
- Basic Economics, 5th?edition,?Thomas Sowell?
- Economics in One Lesson, Henry Hazlitt?
- The US Remains a Manufacturing Powerhouse, Colin Grabow, CATO Institute
- The Reality of American “Deindustrialization,” Colin Grabow?
- The Soul of Enterprise, Episode #213, Interview with Russ Roberts?
- The Soul of Enterprise, Episode #25, Interview with Thomas Sowell?
- The Soul of Enterprise, Episode #209, The Myth of Trade Deficits?
Baker explains accountants—especially those advising businesses on how to react to new tariffs—need a firm grasp of basic economic principles. “Understanding the bigger picture will make you a better advisor, not just a better accountant,” he says.