In Weaver’s Q2 2025 Accounting and SEC Update webinar, our professionals offered critical insights into tariffs, tax policy and accounting standards. They examined the effects of tariffs on operational, transfer pricing strategies and disclosure considerations before summarizing key business and individual tax impacts of the federal tax legislation known as the One Big Beautiful Bill Act (OBBBA). For current and detailed information about the OBBBA, register for Weaver’s One Big Beautiful Bill Act webinar series.
The following summary of the webinar covers issues related to tariffs, including financial reporting for companies, and highlights upcoming Accounting Standards Updates (ASUs).
Tariffs, Transfer Pricing and Financial Reporting Considerations
In recent months, new tariffs have affected a wide range of U.S. businesses — even those without global operations. Tariffs are more than a trade policy issue. They present tax, operational and financial reporting challenges. As enforcement tightens and global supply chains evolve, finance teams need to identify their exposure and minimize risk.
Two Sets of Rules, One Complex System
Tariffs and taxes may seem similar, but they are governed separately. Often considered a form of taxation, a tariff is an ad valorem or specific rate of duty applied to imported goods that is collected by the U.S. Customs and Border Protection (CBP), not the Internal Revenue Service (IRS).
CBP uses its own specific customs valuation methodologies and priority of methodologies that can create variance from the outcomes of IRS transfer pricing methodologies applied for income tax purposes. CBP has remit over all imports, while the IRS transfer pricing regulations are primarily concerned with related-party imports. Related-party imports are not able to apply CBP’s highest priority transaction value method and require related parties to use an alternative customs valuation method.
Additionally, common year-end transfer pricing adjustments based on entity level, profit-based methods may create mismatches with previously declared customs values. This can generate compliance confusion and financial reporting risks.
