Weathering the Tariff Storm: How Businesses Can Stay Resilient Amid Rising Costs and Economic Uncertainty

In a global economy already shaped by uncertainty, recent actions by the United States government have added a new layer of complexity for businesses worldwide. A series of newly imposed tariffs has drastically altered the cost structures and strategic calculus for companies that depend on global trade.

With tariffs ranging from a broad 10% on a wide variety of goods to 25% on steel and automobiles to as high as 125% on imports from China, the ripple effects are being felt across supply chains, industries, and borders.

These moves, which have sparked reciprocal actions from other nations, have reignited fears of a full-blown trade war. More importantly for business leaders, they’ve triggered an urgent need to reevaluate supply chains, financial forecasts, and long-term strategies.

For companies that source goods or materials from outside the U.S., the financial hit is already being felt: margins are shrinking, operations are under pressure, and strategic projects are being reexamined.

The implications are significant and far-reaching. Businesses are now faced with a stark set of choices:

• Switch suppliers to countries not impacted by the tariffs—a move that can take time and carries its own costs and risks.

• Relocate production closer to end markets to minimize exposure—a long-term fix with high up-front costs.

• Raise consumer prices to offset increased import costs, which can hurt demand and customer relationships.

• Absorb the additional costs, resulting in lower profitability.

• Delay or cancel capital investments, reducing long-term growth potential.

• Freeze hiring or reduce headcount, affecting company culture and workforce morale.

• Exit certain markets or products entirely if staying competitive is no longer feasible.

These aren’t easy decisions, and many companies will have to pursue a combination of these strategies, often under significant time pressure.

It’s not just individual businesses that are adjusting. The broader economy is showing clear signs of strain.

Economists have sharply revised U.S. growth forecasts for 2025 downward. What was once a projected GDP growth rate near 2% has now been cut in half, to less than 1%. This slowdown has serious implications for business planning, capital allocation, and investor confidence.

More concerning still, a recent survey of economists now places the odds of a U.S. recession within the next 12 months at nearly 50%—double the recession risk before the announcement of the tariffs. Inflation is also expected to rise by more than 1%, driven by the increase in imported goods’ prices.

The average tariff rate in the U.S. is projected to jump 19% this year alone, creating a direct cost burden for businesses and consumers alike.

In this environment, the ability to stay agile, make smart decisions quickly, and manage risk effectively is becoming a key differentiator.

So, what can businesses do to respond? And more importantly, how can their partners support them during this time of change?

This is where BlackLine comes in.

At BlackLine, we believe that in times of uncertainty, clarity and control over your financial operations are more critical than ever. Our mission is to inspire, power, and guide digital finance transformation for the Office of the CFO. But in this new economic landscape, that mission takes on added urgency.

BlackLine helps organizations ensure that their financials are accurate, efficient, and intelligent. This means fewer surprises, more transparency, and better decision-making—even in turbulent times.

Here’s how we’re helping customers respond:

• Faster, more accurate closes: With real-time automation and controls, companies can close their books quickly and confidently, even as external conditions shift.

• Improved visibility: Our solutions offer insights into performance, trends, and risks that allow finance teams to be proactive, not reactive.

• Greater efficiency and cost control: By automating routine accounting work, companies can reallocate resources to more strategic areas without increasing overhead.

• Future-ready financials: We empower businesses to stay compliant and adaptable, whether they're managing tariff impacts, inflation, or currency fluctuations.

While no one can predict exactly how the trade environment will evolve, we do know this: disruption is likely to be part of the business landscape for the foreseeable future.

Companies that embrace agility, intelligence, and operational efficiency will be better positioned to survive and thrive.

BlackLine is committed to supporting our customers through these challenges. We understand that the stakes are high, and we’re proud to be a partner that helps finance teams lead with confidence.

Now is the time for businesses to take a hard look at their financial operations, assess risks, and invest in tools that provide resilience and flexibility. The ability to respond quickly to changing economic conditions, grounded in accurate, reliable financial data, is no longer optional—it’s essential.

As the global economy continues to evolve, BlackLine will be there to help businesses stay grounded, agile, and future-ready.