Today is Inauguration Day, which means we may not be too far out from a fresh batch of tariffs.

It’s still a bit murky what exactly President-elect Donald Trump’s tariff strategy will entail. (Exhibit A: What the heck is the External Revenue Service?) Fortunately, dear reader, you have us to summarize what’s been proposed and what could happen in Trump’s second term.

History lesson. Tariffs, or taxes on goods imported from other countries, were once “the primary source of federal revenue” for many countries years ago, according to a report from the Congressional Research Service. Governments now typically use tariffs more strategically, to protect certain industries or as leverage in trade talks, the CRS noted.

The Constitution grants Congress the power to enact tariffs, though Congress has extended some of that power to the executive branch, according to the CRS report. (More on that later.)

What to expect. It may feel impossible to keep all of Trump’s tariff proposals straight. Generally speaking, he appears to want to hit China hard, but won’t be sparing major trading partners, either.

As CFO Brew previously reported, Trump has previously threatened to impose across-the-board tariffs of up to 20%, a 25% tariff on Canadian and Mexican imports specifically, and 60% on goods from China. He also said he could tack another 10% on Chinese products on top of whatever else he enacts. Trump also threatened a 100% tariff on BRICS countries, CNN reported last month.

For more on how tariffs may be rolled out, click here.—AZ

Gary Gensler isn’t the only big name departing the SEC when the second Trump administration begins. Chief Accountant Paul Munter has announced he’ll retire from the agency on January 24.

Munter, who joined the SEC in 2019 and became acting chief accountant in 2021 and chief accountant in 2023, oversaw the FASB and the PCAOB. His tenure was marked by the release of numerous new accounting standards, notably ones dealing with DISE, income tax disclosures, and crypto assets.

Munter gave 22 statements and speeches during his term, during which he stressed the need for auditors to remain independent and adhere to high ethical standards. At times, he criticized the auditing profession. He warned audit firms about the importance of setting a proper “tone at the top” and disciplining leaders found guilty of misconduct, for instance, and expressed concern about a rise in audit deficiencies the PCAOB identified.

“Serving as the Chief Accountant for four plus years,” Munter wrote in a post on LinkedIn, “has been the highlight and privilege of my professional career.”

Click here for more on Paul Munter’s retirement.—CV

Citrin Cooperman, the 19th largest CPA firm in the US by revenue, is being passed to a new private equity owner in another deal highlighting accounting’s “wave of consolidation” fueled by PE funding.

Investors led by Blackstone will acquire a majority stake in the middle-market and high-net-worth specialist from New Mountain Capital, making it “the first flip of an audit firm by a private-equity investor,” according to the Wall Street Journal.

New Mountain’s October 2021 purchase of Citrin Cooperman was one of the first private equity investments in major accounting firms. By November, PE firms had acquired a stake in 10 of the 30 largest firms by revenue.

PE-backed firms are using the new investment to scoop up smaller funds. When New Mountain bought its stake in Citrin Cooperman, the firm was valued at about $500 million, the Financial Times reported. By last September—less than three years later—Citrin Cooperman had acquired at least 11 CPA firms and two consulting firms, and its website shows four more deals in October, November, and December. The Blackstone-led deal, “expected to close in the second quarter,” values Citrin Cooperman today at $2 billion, according to the Wall Street Journal.

For more on the first accounting firm flip, click here.—GD