Navigating Tariff Uncertainty: A Novel Approach to Unlocking Additional Capital
In today’s volatile global trade environment, U.S. companies face mounting challenges that can directly impact both their operational and financial resilience. Disrupting the intricate web of the global supply chain —whether broad-based or targeted—poses potentially significant changes to consumer demand, margin profiles, and ultimately can put strain on available cash. In this new world, smart cash management and optimal capital efficiency become ever more important for companies as they head into the second half of 2025.
Over the past month, I’ve spoken with public and private company CFO’s about the impact tariffs may have on their businesses over the coming months, particularly as it pertains to cash management and operating efficiency. The concerns I heard fall roughly into four buckets:
Increased Cash Outlays
When tariffs are levied, companies must pay these costs at the point of importation, tying up cash that could otherwise fund core operations. For enterprises with complex global supply chains, these payments can quickly escalate. Firms with tight cash reserves may find themselves particularly vulnerable.
Increased COGS
Tariffs raise the price of imported raw materials, components, and finished products, inflating COGS. Passing costs forward risks weaker demand, slows sales cycles and delays cash inflows. Absorbing them, on the other hand, directly reduces profitability, leaving less cash available for reinvestment.
Supply Chain Reconfiguration Costs
To mitigate tariff exposure, many companies are exploring reshoring, sourcing from non-tariffed countries, or a combination of the two. While long-term strategic opportunities, these shifts demand significant upfront investment—new supplier contracts, facility expansions, or workforce training—all of which drain cash reserves.
Delayed Investment due to Economic Uncertainty
Tariff policies can be unpredictable, which complicates budgeting and forecasting and prompts many firms to delay capital expenditures or hiring. While caution preserves cash in the short term, it can stifle growth and innovation. Many of the CFOs I spoke with said that figuring out how to strike a balance between the two was now a top priority.
In this uncertain world, enterprises must find creative ways to offset these pressures without compromising operational stability, or eroding trust with their customers – a tall order.
At Oak Point Partners, we’ve spent the last 20+ years purchasing Remnant Assets from large enterprises. Remnant Assets are intangible assets and payment rights, which are unrelated to a company’s core business operations. Oak Point can transform these dormant assets into liquidity for businesses, creating a powerful hedge against tariff-related risks. The transaction requires virtually no time or effort from management teams – which is especially valuable in times like these.
Tariffs unfortunately are a reality shaping today’s economic landscape. With global trade tensions simmering and policy uncertainty continuing, the time to unlock additional cash is now. At Oak Point Partners, we’re here to provide the cash you never knew you had. Feel free to contact us if you’d like to learn more.
