SAP GTS taking the sting out of Tariffs and Trade Wars.

Written By Paul Byrne

Absolute respect to POTUS this is not a political post.

Tariffs and Trade Wars, I don’t think any one reading this would have thought we would be in the middle of a major world trade war……. but we are. This post is not to question the wisdom of #POTUS, but to look at SAP Global Trade Services (GTS), a rock steady SAP product that until the last couple of weeks goes relatively un-noticed

Global trading organisations now have a major task in handling the daily, complex fast-changing trade scenarios thrown up by fluctuating US and China Trade War Tariffs.

In this blog we are going to explain:

1. What Does SAP GTS do ???

Real-time Impact Analysis

SAP enables real-time impact analysis and decision-making, which is crucial when tariffs can change suddenly and businesses must react immediately (e.g., reclassify goods, reroute shipments, or adjust pricing). SAP can model “what-if” scenarios — like what happens to margins if 25% tariffs apply — and determine the best sourcing or routing strategies.

Automated Classification & Tariff Management

SAP GTS automates product classification (e.g., HTS codes) and can handle multiple tariff schedules. When new tariffs are imposed, GTS allows businesses to quickly update classifications and simulate the cost impact across supply chains.

Dynamic Legal Control

It supports country-specific compliance, including embargoes, licenses, and tariff regulations. For the US trade war context, GTS can dynamically check whether products are subject to additional tariffs or restrictions and block or flag non-compliant transactions.

Trade Preference Management

GTS can help determine if goods qualify for preferential treatment under trade agreements (e.g., USMCA). This lets companies reduce duty exposure, which became more important as tariffs increased on Chinese goods.

Centralized Global Compliance

GTS centralizes compliance efforts across all geographies. So, as companies adjusted supply chains to avoid tariffs (e.g., moving sourcing from China to Vietnam), they could stay compliant without duplicating work.

Audit Trails & Reporting

Strong reporting and audit functionality ensures companies can prove compliance to customs authorities, which was critical during the trade war when scrutiny increased.

2. Supporting the Mid-tier

SAP Saas ERP comes with Basic International Trade Capabilities (Embedded).
SAP S/4HANA Public Cloud handles tariff management with a more streamlined and standardized approach compared to SAP GTS. While it doesn’t include full-blown GTS capabilities natively, it does offer essential features for basic international trade compliance and tariff management. Here’s how:

  • Product classification (e.g., assigning commodity codes)

  • Intrastat reporting for EU countries

  • Export/import control checks

  • Basic duty calculation based on tariff codes

But it’s more limited compared to full SAP GTS

Integration with SAP Global Trade Services (GTS)

For companies needing advanced tariff and compliance management, SAP recommends integrating S/4HANA Public Cloud with GTS, which can run in a sidecar setup (e.g., on SAP BTP or in a private cloud).

This integration allows:

  • Advanced product classification

  • Sanctioned party screening

  • License management

  • Preferential origin determination

  • Complex tariff scenario handling (like trade wars

Cloud-Based APIs and Localization

S/4HANA Public Cloud supports APIs and extensibility for plugging into:

  • External tariff databases

  • Third-party trade compliance tools

  • Local government customs systems

This lets businesses stay agile with changing tariff policies.

Analytics and Simulation via Embedded Analytics

You can run real-time cost simulations, pricing impact analysis, and monitor trade compliance KPIs using:

  • Embedded Analytics tools (Fiori apps, CDS views)

  • SAP Analytics Cloud (SAC) integration

This is useful for evaluating the impact of new tariffs on your product lines or sourcing strategies.

3. SAP GTS End of Life and move to SAP GTS on HANA

SAP Global Trade Services (GTS) is undergoing a significant transition, with the mainstream maintenance for SAP GTS 11.0 scheduled to end on December 31, 2025. Post this date, the system will enter Customer-Specific Maintenance (CSM), which lacks legal updates, support packages, and technological enhancements, potentially increasing compliance risks and operational costs .

To address these challenges, SAP has introduced SAP GTS Edition for SAP HANA (E4H), a modernized solution offering:

  • Enhanced User Experience: A redesigned interface using SAP Fiori for improved usability . 

  • Advanced Compliance Features: Real-time analytics, streamlined trade preference management, and improved sanctioned party list screening . 

  • Seamless Integration: Compatibility with both SAP ECC and SAP S/4HANA systems . 

SAP plans to release new versions of GTS E4H biennially, ensuring continuous innovation and alignment with evolving trade regulations .

Organizations are encouraged to plan their migration to SAP GTS E4H before the end of 2025 to maintain compliance and leverage the enhanced capabilities of the new system.

Migrating from SAP GTS 11.0 to SAP GTS, Edition for SAP HANA (E4H) is a major transition, not just technically but functionally. It brings performance and usability improvements, but also changes in architecture and how some processes work.

Final Thoughts

If you need help shaping the use of SAP GTS to tactically help your organisation through the next few challenging months, or need help moving from legacy GTS to SAP GTS on HANA or have a SAP problem that needs fixing, then speak to a Dragon.

Dragon ERP Phase Zero Service will help shape your GTS strategy, help drive and deliver meaningful change, whilst providing independent governance and assurance, helping you’re GTS investment deliver whilst your peers and competitors fail.  

Paul Byrne
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