Stocks are jittery, tariffs just hit 15%, and the IRS lost its boss…again. Happy Tuesday. ☕️
Hello and welcome to Tuesday, August 12, 2025. If your weekend “self-care” was updating landed-cost models, same.
In this issue:
Tariff whiplash hits 15% (and higher on China)
New mega-law = real, immediate tax planning moves
IRS commissioner removed Friday; ops question mark
HEADLINES & DEADLINES
1) Tariffs: the 15% reality check (effective now)
The White House’s across-the-board import tariff took effect late last week; 15% baseline, with higher rates on China. So your pricing, PO timing, and FTZ playbook need to be live, not “in draft.” Watch for pass-through pressure, supplier re-quotes, and retaliation chatter.
2) The “everything” law CFOs actually have to model
The One Big Beautiful Bill Act (yes, that’s the name) is now law.
For finance teams, the biggies include: 100% bonus depreciation revived, domestic R&D expensing reinstated (Sec. 174), interest-limit math back to EBITDA, a pumped-up CHIPS 48D credit, and new GILTI/FDII rates (14%/14%); SALT cap temporarily higher.
Translate: earlier cash tax relief for capex and R&D, different cross-border math, and revised state planning. Start re-running your effective tax rate, NOL/credit utilization, and 2025–2027 capex cadence. (Holland & Knight)
3) IRS musical chairs (again)
President Trump removed IRS Commissioner Billy Long on Friday after a week of mixed messages about 2026 filing logistics. Expect short-term uncertainty around customer-service staffing and timeline guidance while Treasury/IRS reshuffle. For CFOs: keep tax calendar assumptions conservative and draft contingency comms to internal stakeholders. (U.S. Energy Information Administration)
4) CPI week: pricing teams on alert
Wednesday’s CPI print is the macro speed bump between you and your Q3 pricing update. Street chatter: headline moderation with services still sticky—translation, don’t over-celebrate on wage-linked cost curves yet. Have “if CPI <X” and “if CPI >Y” talking points ready for the ELT.
5) Audit oversight survives; plan accordingly
The push to scrap the PCAOB ran aground in the Senate last month. Practical takeaway: expect the existing inspection/enforcement regime to continue; keep your ICFR and CAM documentation game tight (no “we thought that was going away” excuses). (Congressional Budget Office)
6) Energy input costs: don’t bank on a free fall
EIA’s latest outlook calls for only modest moves in crude and retail fuel near-term. If your freight or ops budget assumes a big price break by fall…maybe don’t. Lock in hedges and surcharges with eyes open. (U.S. Department of the Treasury)
News On Turbo Mode
Sept 16, NYC: compliance, risk, and regulation summit for finance leaders. Registration open.
Vontier bets on the “mobility ecosystem” with gas pumps, EV chargers, POS, and car wash software across 250k fueling sites and 65k c-stores.
Denny’s earnings hint at a wobblier consumer: adj. net income down to 4.8 million from 6.9 million, revenue up slightly to 117.7 million.
2026 pay raises seen at 3.5 percent on average, as inflation and new tariffs keep compensation budgets tight.
Stat to steal: Y Combinator founders’ median age dropped from 30 to 24 in three years.
Quote to chew on: AT&T’s CEO was blunt about loyalty to workers, and some investors liked the honesty more than employees did.
Thought starter: CEOs want AI to trim headcount; Fortune asks if an AI CEO is next.
FAST FACTS (SHOW THESE IN THE STAFF MEETING)
15%: Baseline US tariff now active on most imports; higher on China.
100%: Bonus depreciation restored—cash tax timing just changed.
Wed: CPI day; prep your pricing/FX talking points now.
CFO PLAYBOOK (DO THESE THIS WEEK)
Refresh landed-cost stacks: Re-price SKUs with 15% baseline + China differentials; push suppliers for shared pain or re-sourcing options.
Re-run tax cashflows: Pull forward eligible capex; restart domestic R&D expensing; revisit interest-limit capacity under EBITDA; update international rate assumptions.
Stakeholder memo: Brief ops/sales on CPI/energy scenarios and tariff surcharges so your front line isn’t improvising economics.
Audit hygiene: With PCAOB intact, ensure Q3 controls testing and documentation are buttoned up.
CFO-APPROVED WATCHLIST
Read: US tariffs kick in; what it means for supply chains and prices. (WSJ)
Read: Business tax changes you can monetize now. (Holland & Knight client alert PDF) (Holland & Knight)
Preview: CPI week setup and what traders expect. (Bloomberg)
Context: Why your auditors are still, very much, here. (Politico Pro) (Congressional Budget Office)
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