U.S. Tariffs Impact on Manufacturing and how Infor CloudSuite Industrial Can Help

Rachel Bride | March 10th, 2025

For industrial manufacturing companies in the U.S., tariffs on imported materials and components can significantly impact costs, supply chains, and competitiveness. A modern ERP like Infor CloudSuite Industrial (CSI) helps manufacturers mitigate these challenges, optimize operations, and maintain profitability. Here’s how:

1. Smart Sourcing & Supply Chain Optimization

With tariffs increasing costs on imported raw materials, manufacturers need visibility into supplier options. Infor CSI helps by:

• Identifying lower-cost, domestic suppliers to reduce tariff exposure.
• Managing multi-source procurement to shift purchasing away from tariff-heavy countries.
• Providing real-time landed cost tracking so manufacturers can see the true cost of imported goods, including tariffs.

2. Material Cost Tracking & Pricing Adjustments

Many U.S. manufacturers import metals, components, and raw materials that are now more expensive due to tariffs. Infor CSI enables:

• Accurate cost tracking at the item level to calculate true product costs.
• Automated price adjustments to protect margins when material costs fluctuate.
• Real-time financial reporting to assess tariff impact on profitability.

3. Inventory Strategies to Avoid Tariff Shocks

Companies can mitigate tariff costs by strategically stockpiling materials before new tariffs take effect. Infor CSI helps by:

• Optimizing inventory levels based on projected tariff changes.
• Managing bulk purchases and forecasting demand to minimize financial risk.
• Supporting just-in-time (JIT) strategies for materials that aren’t subject to tariffs.

4. Production Planning & Domestic Sourcing

If tariffs make foreign materials too costly, manufacturers may consider reshoring (sourcing domestically) or adjusting product designs. Infor CSI supports this by:

• Optimizing production schedules based on material availability and cost changes.
• Automating bill of materials (BOM) adjustments if alternative materials need to be used.
• Supporting make-vs-buy decisions with real-time cost modeling.

5. Compliance & Duty Drawback Programs

Manufacturers exporting finished goods made from imported, tariffed materials can sometimes claim duty drawbacks. Infor CSI helps by:

• Tracking duty-paid materials that qualify for refunds.
• Automating compliance reporting for U.S. Customs and trade regulations.

6. Competitive Advantage Through Data-Driven Decisions

Tariffs create uncertainty, and manufacturers need real-time insights to make proactive decisions. Infor CSI’s AI-driven analytics provide:

• Cost impact simulations to see how tariff changes will affect margins.
• Supplier performance tracking to identify more cost-effective partners.
• Custom dashboards to monitor tariff costs across the supply chain.

Why Infor CloudSuite Industrial for U.S. Manufacturers?

For SMB manufacturers, Infor CSI provides the agility, visibility, and intelligence to navigate tariffs, control costs, and stay competitive.

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