Adapting to Tariff Volatility in International Business

The stakes are high. That’s how Skadden national security partner Brooks Allen sets the stage for the U.S. Supreme Court case surrounding President Trump’s tariff policy. And that case is just one dynamic in today’s  “revolutionary” tariff environment. Brooks joins Skadden tax partner Jonathan Welbel and Ryan principal Rodrigo Fernandez to break down key issues affecting tariffs and transfer pricing. Hosts David Farhat and Stefane Victor moderate the discussion, which includes a look at scenario modeling and analysis, intercompany agreements and the need for coordinated tax and customs planning in today's trade landscape.

🗝️ Key Points 🗝️ 

Top takeaways from this episode 

• Revolutionary Change: Brooks explains that the tariff landscape has shifted in the last nine months, from a situation where the United States had an average tariff rate around 2.4% to well over 10% applied tariffs. 
• Valuing IP Rights: Tariffs can significantly impact IP valuations. Rodrigo emphasizes that fluctuations in IP valuation due to tariffs can create significant uncertainty and potential disputes.
• Intercompany Agreements: These will become critical because they govern consequences on both the tax side and the customs side. “For whatever planning is being put in place from a customs perspective, one of the key components is getting the legal agreements in place,” Jonathan observes.

💡 Featured Guests 💡

Name: Rodrigo Fernandez

What he does:  Rodrigo specializes in providing transfer pricing, business and intangible property valuation, and other valuation-related projects to clients in a variety of industries, including energy, aerospace, telecommunications and software.

Organization: Ryan

Words of wisdom: “The other thing is thinking about recovery options. So, there's a whole little cottage industry now being set up on customs duty recoveries… So, you applied this tariff, it got reversed, now we're going to go recover it. There's a whole industry around that.”

Connect: LinkedIn 

Name: Jonathan Welbel

What he does:  Jonathan has extensive experience counseling on tax controversy, transfer pricing and other international tax issues.

Organization: Skadden

Words of wisdom: “What we really need is a customs and tax competent authority proceeding. There's no system in place right now, and that is going to be a big problem down the line.”

Connect: