Tariffs Are Reshaping International Trade. The Time to Act is Now.

Tariffs Are Reshaping International Trade.
The Time to Act is Now.

Senior management and boards of directors need to transition from reactive crisis management to strategic reinvention.

Given all the new tariffs and potential retaliatory action, the risks facing cost structures and competitiveness are too critical to overlook.

Here are some proactive tips:

1. Calculate Potential Exposure. Evaluate the financial effects across product lines, markets and suppliers.

2. Leverage Regulatory Tools. Utilize tariff engineering, duty drawback programs, and Foreign Trade Zones.

3. Reconceptualize Your Networks. Simply adopting a “China +1” strategy is insufficient. Opt for a regional approach and consider nearshoring.

4. Enhance Resilience. Utilize a cross-functional pricing strategy, carry out scenario planning, and implement AI-based modelling.

5. Make it a Corporate Governance Issue. Prioritize supply chain transformation as an ongoing corporate governance issue rather than just a crisis response.

This approach transcends mere risk management, representing an opportunity to create a competitive edge. Think of tariffs as a catalyst for reinventing your supply chain for enduring resilience and maximum performance.