The Impact of Tariffs on Cash Flow

As global markets digest the intensifying tariff approach being rolled out by the United States, CFOs are once again being tested on their ability to adapt and lead through economic volatility and uncertainty.

Tariffs are framed as economic protectionist tools, but their effects create significant burdens for companies, forcing them to re-evaluate their supply chain from pricing models to customer contracts.

Many organizations choose the "wait and see" approach, hoping trade relations eventually normalize; unfortunately, recent history and current data suggest inaction is a costly choice.

That’s why leading organizations are making efforts to shore up sensitive financial processes such as receivables management.

Tariffs add financial strain to every transaction. Governments collect levies, applying a tax on goods as they move across borders; however, businesses are the ones that absorb this impact. Tariffs may be passed on through price increases, but sellers are often the ones left to bridge the margin gap.

Reuters recently reported an increasing trend for global automotive manufacturers that are revising profit margin forecasts due to expected tariffs on the bottom line. This isn’t unusual, as companies are grappling with the potential of both cost pressures and their customers’ ability to pay. 

CFOs who proactively model tariff impact on their gross margins and cash conversion cycles are better positioned to absorb shocks from tariffs. Those who assume payment cycles and customer behaviors will remain stable risk falling behind the curve.

Tariffs don’t impact all markets equally. While some regions weather the changes, others slow down, and so do payment cycles. Without regional AR insight, companies can find themselves exposed to unexpected risk.

Yet many finance teams still rely on static, aggregated reporting that can limit their ability to act on a regional level. According to a recent PwC Working Capital Study, 98% of CEOs admitted they could be more confident about the visibility they currently have over cash flow.   

Leading CFOs are increasingly layering regional and customer-level intelligence into their credit and collections strategies. They’re focusing on accessing real-time payment information to better understand regional customer behaviors in a rapidly changing environment.

Tariffs also bring regulatory scrutiny. Invoices must now reflect correct tariff codes, duties, and justifications, especially in jurisdictions where digital reporting and customs monitoring are now standard. Errors can lead to fines, delays, and even seized shipments.

Without robust, compliant invoicing processes in place, the financial risk of tariffs goes well beyond the duty itself. CFOs are now recognizing that invoicing is not a back-office function—it’s a compliance gateway. And getting it wrong can mean real financial and reputational damage.

The pandemic revealed a critical lesson: waiting is not a strategy. Initially, companies delayed investments in transformation, expecting disruption to pass. However, they quickly found themselves behind operationally, financially, and competitively.

Tariffs are the latest shock in a market of continuous and rapidly evolving disruption. Elevated interest rates and borrowing costs are only amplifying the impact on working capital.

It’s increasingly important for organizations to focus on tariff-sensitive processes, like intercompany and accounts receivable management, to enhance insights and enable staff to quickly assess and respond as tariff pressures persist.

BlackLine goes beyond automation, connecting AR intelligence with risk, compliance, and cash forecasting to help CFOs make smarter, faster decisions. Our approach delivers efficient, highly visible invoice-to-cash processes, enabling teams to act on receivables more effectively and unlock more cash from the balance sheet. Built for complex environments, BlackLine seamlessly connects receivables, cash, and reporting across multiple legal entities and ERPs—without bolt-ons or workarounds.

Automate Cash Application
BlackLine harnesses the power of AI and intelligent automation to instantly and accurately apply customer payments to invoices, reducing up to 99% of unapplied cash.

Gain Real-Time AR Intelligence
Unlike HighRadius, which focuses on automating collections tasks, BlackLine delivers intelligent insights across the entire invoice-to-cash lifecycle. It provides a contextual understanding of customer risk, payment behavior, and forecasting, empowering teams to quickly identify trends and take action. BlackLine customers have reduced DSO by up to 10 days.

Ensure Compliant Invoicing and Payments
BlackLine simplifies the payment cycle by enabling easy invoicing, reducing errors, and integrating seamlessly with tax authority systems. It helps ensure compliance with government and regional eInvoicing mandates, minimizing the risk of fines or penalties.

With operations in over 70 countries, global life sciences company Barentz leveraged BlackLine to centralize global visibility and free up capacity for its AR function. It eliminated 50% of the workload, enabling teams to scale without taking on more headcount and automated more than 84% of cash application.

Finance leaders choose BlackLine because:

• It integrates seamlessly across global, multi-ERP environments

• It automates critical receivables processes, reducing manual effort by as much as 85%

• It delivers deeper, real-time insight into customer risk and regional volatility, helping teams reassess payment terms and prioritize collections

• It helps CFOs plan, adapt, and act—not just react

In an age of economic fragmentation, BlackLine doesn’t just digitize the past—it prepares finance teams for the future.