How do automotive suppliers track tariff impact on program profitability?
What is tracking tariff impact?
Tracking tariff impact on program profitability means quantifying how duties and trade policies affect material costs and margin at the program level, not just at import.
Tariffs create ongoing exposure, not one-time adjustments.
How tracking tariff impact works.
-
Identify tariff-exposed materials
-
Assign tariffs to specific programs
-
Monitor changes as sourcing or volumes shift
-
Quantify margin impact continuously
-
Adjust pricing or sourcing strategies
Example of tracking tariff impact on program profitability.
A supplier imports components subject to Section 301 tariffs. Initial cost models include tariffs, but sourcing shifts increase exposure. Without visibility, margin erosion accumulates unnoticed.
Common mistakes automotive suppliers make.
-
Treating tariffs as static
-
Tracking at a company level, not program level
-
Failing to tie tariffs to quotes
How Campfire solves this.
Campfire links tariff exposure directly to programs and assumptions, making profitability risk visible before it compounds.
#faq
Frequently asked questions.
Are tariffs a one-time cost?
No. Exposure evolves with sourcing and volume changes.
Who should monitor tariff impact?
Finance, with visibility shared across teams.