From Trade Wars to Tax Hikes: How Tariffs Transform the Accounting Landscape

Trump’s sweeping tariffs signal a major shift for advisory services in the accounting profession.  

When President Donald Trump announced sweeping new tariffs in early April 2025, including a 10% blanket tariff on all imports and a staggering 54% tariff on goods from China, global markets and American businesses braced for impact. 

On the latest Accounting ARC podcast, Liz Mason, CPA, and Ron Baker, CPA (inactive), discuss what these tariffs mean for the accounting profession—and how firms must quickly pivot to advise clients through these turbulent times. 

Understanding the New Tariffs
Trump invoked the International Emergency Economic Powers Act to justify the tariff measures, aiming to reduce the U.S. trade deficit​. However, many experts warn that such sweeping actions could spark a new wave of global economic uncertainty. 

Mason, CEO of High Rock Accounting, points out that “tariffs are essentially taxes,” and higher costs for imported goods will ultimately be passed down to consumers. 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, agrees, noting, “Protectionism might sound good politically, but economically, it often backfires.” 

What Accountants Need to Know
With supply chains in flux and costs rising, accountants must become strategic advisors. Mason emphasizes that accountants should immediately help clients reassess their sourcing strategies, review pricing models, and evaluate tax implications. 

“Be proactive,” Mason urges. “Clients need clear-eyed assessments and creative strategies to weather the storm.” 

Baker also encourages firms to consider the broader economic landscape. “Whenever trade wars escalate, we see ripple effects across sectors—accountants need to watch for warning signs of recession,” he explains. 

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. 

Opportunities Amidst Challenges
Despite the challenges, the hosts believe there are opportunities for forward-thinking firms. Accountants can play a crucial role in helping companies diversify supply chains, capitalize on potential domestic manufacturing incentives, and redesign cost structures. 

As Mason concludes, “Tariffs might create instability, but they also highlight why agile, informed accounting guidance is more critical than ever.” 

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