A schematic view of the EY Tariff-Trade Modeling Tool is provided in the Model Diagram
section. The EY Tariff-Trade Modeling Tool is intended to provide high-level quantitative estimates of the following
types of tariff impacts for a given company:
Direct foreign payments: The rise in direct payments due to tariffed imported input prices
from foreign suppliers.
Indirect foreign payments: The rise in indirect payments due to input prices if tariffed imports are
part of supply chains.
Domestic price increase: The increase in local price due to the production of import competing goods
Pass-through from border prices to domestic prices: The proportion of tarffis that will be passed to
consumers or absorbed by producers based on factors such as market power, the shares in a given industry,
and distribution margins.
Exchange rate adjustments: Changes in bilateral exchange rate necessary to compensate partially or
totally increases in prices associated with the tariffs.
The EY TTMT allows clients to quantify and communicate the effects of tariffs to their board and other relevant
stakeholders. The Tool can be very useful to corporations and partnerships and can be easily adpated to different
levels of industry granularity (e.g., different SIC code digits).
1 Narayanan, Badri G., Ciuriak, Dan, and Singh, Harsh Vardhana. April 2015. Quantifying the Mega-Regional
Trade Agreements: A Review of the Models. The UK Department for International Development (DFID).s