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Tariffs and The Ripple Effect:
Why HR and Finance Leaders Should Pay Attention

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Tariffs often dominate the headlines as geopolitical chess moves, but their downstream impact runs far deeper than many employers realize鈥攖ouching not only the cost of goods, but also business confidence, financial forecasting, and ultimately, people strategies.

At ob体育, we鈥檙e seeing firsthand how tariffs are creating ripple effects beyond supply chains. For HR and finance leaders, these disruptions can feel distant, yet they鈥檙e impacting workforce decisions, benefits planning, and employee morale in ways that demand attention.

Uncertainty is the New Normal: What We鈥檙e Hearing from the Field

鈥�Everything has been so unknown that the primary impact for us has been on property and casualty renewals,鈥� says Josh Hedrick, Senior Vice President at ob体育. 鈥�Clients are projecting much lower revenues since they are unsure of the impact over the next 12 months on product cost.鈥�

JOSH HEDRICK | CLCS
Senior Vice President, Food
Manufacturing Leader

Similarly, Alex Hamilton, Marine Practice Leader at ob体育, notes, 鈥�When I ask my clients involved in global trade what they are thinking, the message is pretty consistent: there is just so much uncertainty they are struggling to make any concrete, fact-based decisions.鈥�

ALEX HAMILTON
Vice President, Marine
Practice Leader

This uncertainty has created a ripple effect not just on operations but on people strategies. Companies are hesitant to invest in capital or inventory鈥攂ut they鈥檙e also pausing workforce decisions, benefits planning, and compensation strategies.

Hamilton adds, 鈥�Some clients are stockpiling inventories, requiring us to increase warehouse limits which is driving up premium bases on our Stock Throughput policies鈥攂ut that鈥檚 a short-term hedge, not a long-term strategy.鈥�

Why HR and CFOs Should Care About Tariffs

For HR and finance leaders, tariffs may appear as a supply chain or logistics problem. But the indirect impacts are landing squarely in your world:

  • Delays in workforce planning or hiring freezes as leadership stalls on forward-looking budgets.
  • Increased scrutiny on employee benefits costs as companies attempt to protect margins.
  • Employee morale concerns as uncertainty at the top filters down to the workforce.

When tariffs drive revenue uncertainty, people-related costs鈥攕alaries, health benefits, retirement contributions鈥攁re often the first line items scrutinized.

What Insurance Can鈥攁nd Can鈥檛鈥擠o

While no insurance product exists that directly covers tariff exposure itself, Hedrick notes there is plenty of talk around related coverages:

  • Accounts Receivable/Trade Credit Insurance, which can help mitigate customer default risk if tariffs disrupt payments.
  • Supply Chain Insurance, providing coverage if tariffs disrupt production or delivery.
  • Political Risk Insurance, offering protection against the broader government actions鈥攍ike tariffs鈥攖hat can destabilize global trade.

These are tools employers should consider as part of broader risk conversations, particularly those with global operations or supplier dependencies.

How ob体育 Helps Clients Turn Uncertainty into Strategy

At ob体育, we work closely with HR and finance leaders to help connect these geopolitical risks to people strategies, ensuring they aren鈥檛 caught off guard by the secondary effects of tariffs. Our teams support clients by:

  • Building benefits cost modeling scenarios that factor in tariff-driven revenue volatility.
  • Conducting employee communication audits, ensuring transparency during global business disruptions.
  • Partnering with CFOs and HR teams to review benefit plan flexibility, helping businesses adjust thoughtfully without eroding employee trust or engagement.

Our approach isn鈥檛 to sound alarms鈥攂ut to help clients plan for what could happen, ensuring they have flexibility when global risks show up on the P&L鈥攐r the HR dashboard.

Preparing for the Next Disruption鈥擶hatever Form it Takes

While tariff headlines may rise and fall with the political cycle, the underlying volatility in global trade and supply chains is here to stay. As Mark Ware, EVP and National Practice Director at ob体育, puts it, 鈥�Even when tariff discussions cool off, the risks don鈥檛 disappear. They simply shift鈥攃reating new points of pressure for businesses to anticipate.鈥�

MARK WARE
Executive Vice President and
National Practice Leader

At ob体育, we believe that economic uncertainty and regulatory unpredictability will remain part of the operating environment for the foreseeable future. Employers who proactively connect these risks to their people strategies, cost planning, and employee engagement efforts will be better positioned to adapt鈥攚ithout sacrificing workforce stability or financial clarity.

Contributors

JOSH HEDRICK | CLCS
Senior Vice President, Food
Manufacturing Leader

ALEX HAMILTON
Vice President, Marine
Practice Leader

MARK WARE
Executive Vice President and
National Practice Leader

JOHN S. DODSON
Senior Marketing Strategist,
Employee Benefits

This material is for general information only and should not be considered as a substitute for legal, medical, tax and/or actuarial advice. Contact the appropriate professional counsel for such matters. These materials are not exhaustive and are subject to possible changes in applicable laws, rules, and regulations and their interpretations.