Q1 2025 quarterly perspectives of highlights: tariffs, ESG & Fed Funding

In our latest webinar, the discussion participants of the examination and insurance insurance standards and the Washington National Tax Office in Forvis Mazars took a look at the regulatory developments for financial reporting in the first quarter of 2025, including tariffs. Regulatory updates of environmental, social and governance (ESG); and uncertainties of federal financing. Below you will find an overview of important snack bars for your organization:

Tariff

An ongoing topic of interest is the effects of tariffs in various industries. The latest changes announced by the Trump administration include a tariff of 25% on steel and aluminum and a tariff of 10% for others as part of a wider strategy to protect domestic industries, trade and acquire income. With a view to the nearby future, the 90-day break for mutual collective bargaining on July 9, 2025, and it is expected that more countries will make trade agreements with the United States to lower tariffs.

The potential effects of these tariffs remain a question of the debate. Companies must decide whether these costs should be absorbed or passed on to consumers. Monitoring and prediction of tariff expenditure is a crucial part of financial planning for companies that navigate international trade.

ESG Regulatory Update

In the climate decision rule of the SEC, the aim was to ensure that public companies disclose the risk related to the climate and greenhouse gas emissions. However, the rule was suspended against legal disputes and the SEC has stopped defending the rule before the courts. Nevertheless, companies may still have to consider climate -related information based on where they do business due to state and international regulations and possibly of requirements for investors and customers.

State climate -opened laws

As the main example of state requirements, California triggered two significant laws to disclose the climate:

• Senate Bill 253 – Climate Act on corporate data responsibility: Demands companies with sales of more than $ 1 billion and business in California to report certain greenhouse gas emissions from 2026, with different certainty accessible over time.
• Senate Bill 261 greenhouse gases: Climate-related financial risk: Mandats companies with sales of more than $ 500 million and business in California to publish certain climate-based financial risk information by January 1, 2026.

Similar laws were issued in New York, Illinois, Colorado and New Jersey with different schedules for reporting requirements.

EU directive on the sustainability reporting of the EU (CSRD)

Internationally, the CSRD requires that companies meet certain criteria in order to report their sustainability and its effects on society and the environment. The guideline for US companies with net sales of € 150 million or more in the European Union (EU) contains strict requirements for reporting and insurance. There is a proposed omnibus legislation that can change these threshold values ​​and may reduce the scope of some US companies.

Companies have to prepare for these requirements for sustainability reporting by developing detailed strategies and complying with state and international regulations.

Effects of uncertainty on federal financing

Federal actions after the end of the year after the calendar have created uncertainties in federal financing, which affects both non -profit and non -profit companies. Organizations must understand their trust in federal financing and how recent changes can affect their financial reporting.

Key considerations

• Realization of sales and demands:
  • Reserves and collection
  • Contract changes or dismissals
• Declarations:
  • Subsequent events
  • Risks and uncertainties
  • Risk concentrations
  • Liquidity and availability of resources
  • To assess applications

The companies affected by federal financing must disclose specific details on their dependence on such means and potential risks. It is to be expected that the examiners ask customers detailed questions, how tariffs and uncertainties in federal financing influence their business, reserves and subsequent events. Transparent and timely disclosures are crucial to inform readers about the actual effects on the financial health of a company.

Further information can be found in the full webinar “Quarter Perspectives: Financial Reporting & Against / Q1 2025” on need.*

*CPE is not available for archived webinars.

How Forvis Mazars can help

Understanding the effects of these topics on financial reporting and maintaining transparent disclosure are crucial for companies in order to adapt to the changing landscape and to meet the expectations of stakeholders. Talks with auditors and consultants are important to control these uncertainties and to promote compliance with the developing regulations. Further information and details about future webinars can be found here to subscribe to our assurance.