Global supply chains have borne the brunt of several disruptive events in the past few years, including the pandemic-induced vessel congestion that lasted for the better part of 2 years, causing severe delays in transit times and cargo deliveries. Supply chain resilience has become a key focus for companies facing supply chain disruptions like COVID-19 and the Suez Canal blockage, as these events have highlighted the need for robust strategies to manage risks and maintain the flow of materials, components, and finished products. Other similar events included the Suez Canal blockage, which exacerbated the impact of the COVID-19 pandemic and the ongoing Middle Eastern conflict.
Subsequent alterations in trade and sourcing patterns and sailing routes also weighed upon supply chains, requiring urgent reconfiguration. Understanding the flow of materials, components, and finished products through various processes — from sourcing raw materials to manufacturing, production, and distribution — has become essential for optimizing supply chain performance.
Quite predictably, all these factors caused large-scale upheaval in international trade. During COVID, importers responded by building slack into the system, in the form of higher inventory and planning for longer delivery times, while carriers deployed all the tonnage available in the market, by acquiring second-hand vessels and delaying scrapping. Manufacturers and suppliers had to adapt their processes to maintain the flow of materials and components through multiple tiers of the supply chain. Sourcing raw materials and managing lead time became critical for industries such as manufacturing and distribution to ensure continuous production and timely delivery of finished products.
Similarly, carriers rerouted their vessels via the Cape of Good Hope to avoid the Red Sea conflict zone, which, though adding to sailing distances and transit times, enabled them to absorb surplus capacity, while also ensuring safe transit for cargo, crew, and vessels. These changes in shipping routes affected distribution networks and retailers, impacting the final delivery of finished products to customers and requiring adjustments in inventory and logistics processes.
Supply chain disruptions have underscored the need for robust supply chain resilience strategies across industries, emphasizing the importance of collaboration among manufacturers, suppliers, distributors, and retailers to convert raw materials into finished products efficiently and adapt to changing global conditions.
Tariffs Emerge as the Latest Supply Chain Disruptions
Since the beginning of 2025, tariffs have dominated corporate boardroom discussions, being the latest in the series of disruptive events. Tariff measures have directly impacted pricing strategies and forced companies to increase prices, resulting in higher prices for both companies and consumers.
After Trump became POTUS and came true on his poll promises of imposing tariffs across the board, trade wars have escalated rapidly. Surprising trade experts, the Trump administration imposed tariffs not just on China but also on countries that are geopolitically and ideologically allied to the US, including Canada, the European Union, and India. The White House’s policies have had negative effects on the global economy, with the Federal Reserve Bank confirming that with data on its market impact and inflationary pressures.
What was even more staggering was the level of tariffs imposed, which included a 10% baseline tariff, as well as reciprocal tariffs, significantly increasing average tariff levels for all of its trading partners.
The complexity was compounded by the frequent reversals, temporary pauses, exemptions granted, and short implementation periods. As other countries announced retaliatory tariffs, the regulatory environment underwent a radical change. Companies have had to adjust their business logistics and supply chain models to maintain profits and revenue in the face of higher prices and increased costs.
The raft of tariffs at the commodity and component-level, and varying rates for different countries, further worsened regulatory and customs complexity.
American importers have been compelled to take into account all the changes happening at a bewildering speed, to ensure that they remain compliant with customs regulations and accurately calculate tariffs and duties, to avoid under- or overpayment, and also take advantage of exemptions.
The overall situation concerning tariffs is extremely volatile, with little time available to react to changes, and it is in this aspect that the disruptive effect of tariffs is far greater than that of other factors, as changes are announced at a breakneck pace and with little time to effectively react thereto.
The ramifications are felt right at the top level, with senior management expending considerable time to redesign corporate strategies to tackle tariff-related challenges, so much so that tariffs remained the number 1 topic in 53% of Q2 2025 earnings calls. For example, government intervention in the form of tariff measures can lead to negative effects such as reduced profits and increased prices for customers.
Additionally, changes in demand and market conditions, driven by tariffs, have forced companies to rethink their pricing and supply chain models to better serve consumers and customers.
Tips to Deal With Tariff Uncertainty in Supply Chain Management
With tariffs and regulations being beyond the control of importers, the only viable course of action for corporations is to strengthen internal procedures and trade compliance departments. The importance of effective supply chain management and efficient processes cannot be overstated, as they help organizations navigate tariff uncertainty and maintain resilience across their operations.
This entails:
- Keeping updated on the latest tariff rates for each commodity and country
- Being aware of the organization’s customs footprint and sourcing locations
- Simulating landed costs for their supply chains, taking into consideration various sourcing origins, to capitalize on locational cost advantages
- Reconfiguring supply chains, as appropriate to maximize benefits to the overall business
- Centrally monitoring consignment status to calculate tariff impact, identify potential delays, and mitigate risks to their supply chains
- Leveraging digital transformation and technology to improve efficiency, production efficiency, and streamline operations across all supply chain management processes
This can be achieved through timely reporting, real-time visibility, and forecasting tariff complexities. By focusing on quality, service, and value chains, companies can maintain competitiveness and deliver better products or services to customers.
Additionally, the importance of marketing and service in supporting supply chain management and ensuring customer satisfaction should not be overlooked.
Leveraging Technology to Navigate the Tariff Maze
To do so, however, it is imperative to leverage technology, as such a task is beyond human capability.
Fortunately, recent advances in AI and ML have led to the development of sophisticated logtech solutions that can help senior management evaluate the relative benefits of competing alternatives and take data-driven decisions that select the best option available under the circumstances.
While the decision on what constitutes the ideal solution for an importer depends on their geographical and operational scale, as well as the pain points to be addressed, an industry best practice is to deploy a global control tower solution. Deploying a robust supply chain model is essential for optimizing the entire supply chain and supporting technology-driven decision-making within these control tower frameworks.
Considered the pinnacle of logtech sophistication, global control towers automate the entire supply chain, rather than specific elements.
Within this segment, KlearHub, the global control tower product offered by KlearNow, has gained a reputation for helping businesses streamline their supply chains.
KlearHub transforms global trade data to provide actionable insights and real-time analytics, making it the ideal logtech platform for American importers looking to navigate the current volatile environment.
For a demo on how KlearHub can elevate supply chains, click here today.
Frequently Asked Questions (FAQs)
1. What does supply chain management include?
Supply chain management includes the coordination of all processes involved in moving raw materials, components, and finished goods from suppliers to customers. It covers sourcing, production, logistics, and distribution, ensuring that every part of the supply chain operates efficiently and supports overall business goals.
2. Why are resilient supply chains important for importers facing tariff uncertainty?
Resilient supply chains help importers respond quickly to sudden changes such as new tariffs, trade restrictions, or route disruptions. By strengthening supply chain management and leveraging real-time data, companies can adjust sourcing locations, simulate costs, and protect their value chains from unexpected shocks.
3. How do tariffs impact global supply chain management?
Tariffs increase the complexity of global supply chain management by raising costs for imported raw materials and finished products. This affects pricing strategies, sourcing decisions, and logistics networks, forcing businesses to reconfigure their supply chains to stay competitive and compliant.
4. What technologies can help companies manage supply chain risks?
Digital tools such as AI-powered control towers and real-time visibility platforms like KlearHub enable better decision-making across the supply chain. These technologies analyze trade data, track shipments, and simulate tariff impacts, helping companies maintain strong value chains and optimize overall supply chain management.
5. How can companies strengthen their supply chain management strategies?
To strengthen supply chain management, companies should regularly review sourcing patterns, monitor tariff updates, and invest in automation. By ensuring transparency from raw materials to end products, organizations can create more agile supply chains and deliver greater value across their value chains.
