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Home / Blogs / 5 Supply Chain Strategies for Riding the Tariff Roller Coaster

5 Supply Chain Strategies for Riding the Tariff Roller Coaster

May 16, 2025

Resilinc Editorial Team

AI, Tariffs and Trade

Explore supply chain strategies for navigating tariff uncertainty—and learn about how Resilinc’s AI agents for tariff disruption are changing the game.

In recent weeks, tariff-related headlines have dominated global news cycles—from China’s restrictions on critical mineral exports to the U.S. cutting tariffs on Chinese imports from 145% to 30% for 90 days. With trade policies shifting at an unprecedented pace, companies are being forced to navigate a moving target. What was a stable sourcing strategy yesterday may be obsolete today.

The result? A landscape where unpredictability is the only constant, and what Resilinc CEO Kamal Ahluwalia recently described to Agenda Week as “a world in flux”. As new tariffs emerge and geopolitical tensions flare, supply chain leaders are under pressure to move fast. In this blog, we’ll explore the strategies companies are deploying to stay agile, reduce exposure, and outmaneuver the next curve in the trade war.

 

1. Rethink location

With U.S. tariffs on China likely to remain a central focus, many companies are eyeing countries like India for manufacturing relocation. As Kamal Ahluwalia noted, “Multiple geographies will have multiple ripple effects in their supply chain.” While shifting to India may offer short-term relief, it also introduces new risks. India, for instance, has seen a rapid influx of supply chain relocations, which could lead to congestion or labor constraints. Companies must evaluate not just the cost advantages, but also the longer-term sustainability and resilience of these new hubs.

Relocation isn’t a simple fix. It demands supplier requalification, workforce ramp-up, and long-term planning. Instead of betting on a single alternative, companies should consider supply chain strategies for diversifying across multiple regions to build flexibility and reduce exposure to geopolitical shocks.

 

2. Investigate tariff exemptions

Not every tariff is set in stone—and savvy supply chain teams know where to look for relief. According to Kamal Ahluwalia, some of Resilinc’s clients are navigating the current tariff environment by closely examining trade treaties like the U.S.-Mexico-Canada Agreement (USMCA). These agreements often contain product-specific exemptions that can significantly reduce costs if leveraged strategically.

Whether it’s through preferential rules of origin, special duty classifications, or exemptions based on product use, these loopholes can be critical decision-making tools when evaluating sourcing locations or manufacturing moves. The key is understanding which goods qualify and proactively working with legal and compliance teams to secure eligibility.

 

3. Look for activities that can be moved to the US

Companies should assess which functions—especially those with minimal physical infrastructure—can be quickly and cost-effectively relocated to the U.S. Intellectual property (IP) is a prime candidate. By separating IP development and management from physical manufacturing, businesses can avoid some of the tariff burden and gain added protections under U.S. legal frameworks.

This move not only reduces exposure to international trade frictions but can also speed up regulatory approvals, improve oversight, and enhance cybersecurity. Shifting IP or other non-manufacturing processes, such as design, R&D, or testing, can deliver fast, tangible savings while strengthening control.

 

4. Identify critical products

As tariffs continue to reshape the competitive landscape, supply chains will face consolidation, especially among smaller players unable to absorb rising costs. This could lead to a wave of acquisitions by larger firms. To stay ahead of these shifts, companies must understand what’s truly essential to their operations.

That starts with identifying critical products, those that are unique to the brand, core to customer value, or difficult to replace. From there, companies should dig deeper to understand the raw materials, specialized components, or proprietary processes that make their products distinct. Knowing what’s irreplaceable in the supply chain empowers smarter sourcing decisions, better supply chain strategies, strategic investments, and stronger negotiations with suppliers. It also ensures that as the industry landscape changes, the heart of the business is protected.

 

5. Consider AI agents for tariff disruption

In today’s volatile trade environment, traditional tools like spreadsheets and manual monitoring simply can’t keep pace. Supply chains are more complex than ever, and tariff changes are unfolding in days—not months. To stay ahead, companies need more than reactive measures. They need predictive, intelligent systems.

Resilinc’s AI agents for tariff disruption are designed for exactly that. These advanced tools continuously monitor global trade policies and can provide game plans based on the latest tariff data, for example, automatically launching a cost impact model when new tariffs are detected. Discover Resilinc’s AI agents for tariffs, UFLPA, and more.

 

Supply Chain Strategies for Navigating Tariffs

The supply chain strategies outlined in this blog provide a roadmap for navigating today’s tariff turbulence. But perhaps the most transformative shift is the rise of AI agents for tariff disruption—tools that turn real-time policy monitoring into automated action. By integrating AI with strategic decision-making, companies are redefining resilience. The next wave of supply chain success won’t come from reacting to change—it will come from predicting it.

Learn more about the latest tariff changes. Read the full Resilinc Special Report to explore how China’s mineral export restrictions highlight the urgent need for smarter global risk management.

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