Submit your papersSubmit Now
For Enquiries: [email protected]
IIARD LogoIIARD

Analyzing Tariff Impacts on Supply Chain Accounting and Strategic Management in the Context of U.S.-China Trade Relations

Jacob Kehinde Abu

Abstract

This study analyzed the impacts of tariff policies on supply chain accounting and strategic management within the context of U.S.–China trade relations, with the specific objectives of examining supply chain restructuring, accounting adjustments, and strategic responses to tariff risks. An exploratory research design was adopted to capture the complexity of tariff effects across sourcing, logistics, production, cost management, and long-term strategy. Data were collected from secondary sources such as published articles, peer-reviewed journals, and policy papers, ensuring a broad coverage of perspectives. The study employed thematic analysis as the method of data interpretation, identifying recurring patterns on supply chain disruption, financial reporting adjustments, and strategic diversification. The findings revealed that tariffs have had profound effects on sourcing decisions, as firms diversify away from China yet remain entangled in Chinese-linked production systems; tariff-induced disruptions have compelled firms to overhaul inventory valuation methods, refine cost management systems, and expand financial reporting frameworks; effective strategic management in the face of tariff risks relies on diversification of suppliers and markets, technological innovation, compliance integration, and long-term scenario planning. In conclusion, the intertwining of supply chain and accounting adjustments illustrates how trade policy shocks penetrate firm-level financial stability and reporting integrity, reshaping the very tools through which companies evaluate performance and communicate with stakeholders. To chief financial officers and accounting professionals, it is recommended that firms integrate advanced cost accounting systems and real-time inventory management software to better capture fluctuations in input costs and trade-related disruptions. Such systems would enhance transparency in financial reporting and allow organ

Keywords

Tariff PoliciesSupply Chain AccountingStrategic ManagementU.S.–China

References

Abunar, S. M., & Zerban, A. M. (2016). Enhancing accounting information systems to facilitate supply chain management between supermarkets/suppliers: The case of Saudi Arabia. Journal of accounting and marketing, 5(2), 1-7. Akyuz, G. A., & Gursoy, G. (2020). Strategic management perspectives on supply chain. Management Review Quarterly, 70(2), 213-241. Alessandria, G., Khan, S. Y., Khederlarian, A., Ruhl, K. J., & Steinberg, J. B. (2025). Trade war and peace: US-China trade and tariff risk from 2015–2050. Journal of International Economics, 155, 104066. Cerutti, E., Gopinath, G., & Mohommad, A. (2019, May 23). The impact of US-China trade tensions. International Monetary Fund. Retrieved from https://www.imf.org/en/Blogs/Articles/2019/05/23/blog-the-impact-of-us-china-trade- tensions Chan, H., & Kim, M. H. (2025). What drives China’s continuation of trade conflict with the US? Taking China’s foreign policy ideology seriously. Asian Journal of Political Science, 33(2), 409-427. Coase, R. H. (1993). The nature of the firm (1937). The nature of the firm: origins, evolution, and development, 18-33. Contractor, F. J. (2025). Assessing the economic impact of tariffs: adaptations by multinationals and traders to mitigate tariffs. Review of international business and strategy, 35(2/3), 190-213. Deirmentzoglou, G. A. (2025). Trade Wars and International Relations: Implications for Global Supply Chains, Technological Advancement, and Energy Security. In Security and Strategy Models for Key-Solving Institutional Frameworks (pp. 51-82). IGI Global Scientific Publishing. Emegha, K. N., Ofobuike, C. L., & Ochuba, K. A. (2025). Assessing the Impact of the USA- China Trade war on Global supply chains: Implications for Nigeria’s Inflation Rates. Advanced Journal of Economics and Marketing Research, 10(3), 1-14. Fan, D., Zhou, Y., Yeung, A. C., Lo, C. K., & Tang, C. (2022). Impact of the US–China trade war on the operating performance of US firms: The role of outsourcing and supply base complexity. Journal of Operations Management, 68(8), 928-962. Free, C. (2007). Supply?chain accounting practices in the UK retail sector: Enabling or coercing collaboration?. Contemporary Accounting Research, 24(3), 897-933. Free, C. (2008). Walking the talk? Supply chain accounting and trust among UK supermarkets and suppliers. Accounting, Organizations and Society, 33(6), 629-662. Freund, C., Mattoo, A., Mulabdic, A., & Ruta, M. (2024). Is US trade policy reshaping global supply chains?. Journal of International Economics, 152, 104011. Fusacchia, I. (2020). Evaluating the impact of the US–China trade war on euro area economies: A tale of global value chains. Italian Economic Journal, 6(3), 441-468. Gur, N., & Dilek, S. (2023). US–China economic rivalry and the reshoring of global supply chains. The Chinese Journal of International Politics, 16(1), 61-83. Hardt, L. (2009). The history of transaction cost economics and its recent developments. Erasmus Journal for Economics and Philosophy, 2(1), 29-51. Lee, C. W., & Khan, A. Z. (2025). The Impact of Trump’s Tariff Policies on Global Trade Dynamics: A Case Study of Major US Trade Partners. International Journal of Business and Economic Affairs, 10(1), 62-71. Lipuma, L., & Coote, S. (2025, May 14). Tariffs and risk management: How to prepare for any scenario. Willis Towers Watson. https://www.wtwco.com/en- us/insights/2025/05/tariffs-and-risk-management-how-to-prepare-for-any-scenario Lu, G. (2025). The effect of tariff risk on real earnings management. SSRN. https://doi.org/10.2139/ssrn.5248759 Ma, H., Ning, J., & Xu, Y. (2023). Reshaping Factory Asia: How Did the Us-China Trade War Affect the Asian-Pacific Supply Chain?. Available at SSRN 5293068. Mainardes, E. W., Ferreira, J. J., & Raposo, M. L. (2014). Strategy and strategic management concepts: are they recognised by management students. Business Administration and Management, 17(1), 43-61. Mangini, M. D. (2023). Escape from tariffs: The political economies of protection and classification. Economics & Politics, 35(3), 773-805. Meng, B., Gao, Y., Zhang, T., Ye, J., & Zhang, Y. (2025). The US–China relations and the impact of the US–China trade war: Global value chains analyses. Economic Analysis and Policy, 87, 1896–1908. https://doi.org/10.1016/j.eap.2025.07.038 Morgan, S., Arita, S., Beckman, J., Ahsan, S., Russell, D., Jarrell, P., & Kenner, B. (2022, January). The economic impacts of retaliatory tariffs on U.S. agriculture (ERR-304). U.S. Department of Agriculture, Economic Research Service. https://ers.usda.gov/sites/default/files/_laserfiche/publications/102980/ERR- 304.pdf?v=13480 Mo?teanu, N. R. (2024). Adapting to the unpredictable: Building resilience for business continuity in an ever-changing landscape. European Journal of Theoretical and Applied Sciences, 2(1), 444-457. Mugisa, A. (2023). Strategies to Mitigate Foreign Trade Costs and Regulations That Reduce Revenues. Walden University. Ojike, R. O., Ikpe, M., Odionye, J. C., & Agu, S. V. (2025). Tariff effects on industrial performance: symmetric and asymmetric evidence from Nigeria. African Journal of Economic and Management Studies, 16(2), 167-185. Olawore, O. C., Aiki, T. R., Banjo, O. J., Okoh, V. O., & Olafimihan, T. O. (2025). The Impact of Tariff Policies on International Trade Relations and Economic Competitiveness: A Comparative Study of Developed and Developing Economies. Saudi J Econ Fin, 9(7), 253-265. Oliver, W. (2019, November). Tariff risk-mitigation strategies for manufacturing industries. Oliver Wyman. https://www.oliverwyman.com/our- expertise/insights/2019/nov/perspectives-on-manufacturing-industries-vol- 14/manufacturing-in-a-changing-world/tariff-risk-mitigation-strategies-for- manufacturing-industries.html Schneller, E., Abdulsalam, Y., Conway, K., & Eckler, J. (2023). Strategic management of the healthcare supply chain. John Wiley & Sons. Swenson, D. L. (2024). Trade-war Tariffs and Supply Chain Trade. Asian Economic Papers, 23(1), 66-86. Taheri, H. N. (2025). Comprehensive analysis of tariff effects on the United States economy. Retrieved from http://131.204.73.195/handle/11200/50709 Taschner, A., & Charifzadeh, M. (2020). Management accounting in supply chains–what we know and what we teach. Journal of Accounting & Organizational Change, 16(3), 369- Taschner, A., & Charifzadeh, M. (2023). Digitalization and Supply Chain Accounting. In Management Accounting in Supply Chains (pp. 281-324). Wiesbaden: Springer Fachmedien Wiesbaden. Walmsley, T., & Minor, P. (2020). US trade actions against China: a supply chain perspective. Foreign Trade Review, 55(3), 337-371. Wang, L. (2025). The Impact of Tariffs and Trade Tensions on Global Aviation Logistics: A Bayesian Network Risk Analysis. International Journal of Advanced AI Applications, 1(7), 11-22. Wang, Y., Yang, K., & Yang, Y. (2025). Monetary Policy Responses to Tariff Shocks: Lending Facilities as a Complementary Tool. International Review of Economics & Finance, Williamson, O. E. (2016). The transaction cost economics project: origins, evolution, utilization. In The Elgar Companion to Ronald H. Coase (pp. 34-42). Edward Elgar Publishing.

More Articles from JOURNAL OF ACCOUNTING AND FINANCIAL MANAGEMENT

Cashflow Management and the Performance of Commercial Banks in Nigeria

Author: Jeffrey Ayas Iyakonbogha, Clement E. Ozele

The Nigerian Code of Corporate Governance and Financial Performance of Deposit Money Banks in Nigeria

Author: i, Eneaniofu Daniel Mmaduakonam, ii, Azolike Nkiru Nkechi, iii, Emeter Patrick Okechukwu, iv, Okwor Emmanuel Ejimnkonye