Tariffs are shifting fast—disrupting supply chains and raising costs. Stay ahead with these tariff risk mitigation techniques and supply chain resilience strategies.
From North America to Europe and Asia, recent tariff escalations have sent shockwaves through global supply chains—driving up costs, delaying production, and straining trade relationships. As governments impose tariffs to address trade imbalances, protect domestic industries, or respond to economic disputes, companies are left grappling with an increasingly complex and unpredictable landscape.
Businesses are finding their traditional systems ill-equipped to handle rapidly changing tariffs, leading them to seek innovative solutions. The Wall Street Journal recently reported how companies are adopting specialized software to anticipate and manage the impact of tariffs. Resilinc CEO Kamal Ahluwalia revealed the company is developing a tariff-focused AI agent specifically designed to help businesses assess and mitigate these evolving challenges.
In this blog, we’ll break down key supply chain resilience strategies and tariff risk mitigation techniques to help you navigate tariff volatility, minimize disruptions, and keep your supply chain agile in an evolving trade environment.
1. Map Your Supply Chain
Understanding the full impact of tariffs on your business starts with visibility into your supply chain. Tariffs don’t just affect direct imports—they create ripple effects that can disrupt hidden sub-tier suppliers. Without a clear view of supplier dependencies, businesses risk being caught off guard by tariff-driven bottlenecks.
To prepare for tariffs, start by mapping your most critical suppliers and their sub-tier suppliers. Identify where they are located, which parts those suppliers produce, contact information for each site, and other crucial information about each supplier—to ensure you can react quickly to changing tariffs. With a clear understanding of potential vulnerabilities, you can develop alternative sourcing strategies and minimize the risk of unexpected delays and cost increases.
2. Use Scenario Planning for Tariff Changes
Once you’ve mapped your supply chain, the next step is to evaluate how tariffs will affect your business—both in terms of costs and overall revenue impact. Scenario planning for tariff changes enables procurement teams to model different tariffs, helping them make data-driven decisions to mitigate risks and control costs.
For example, imagine a company reviews its bill of materials (BOM) and finds that a specific part is sourced from Mexico. However, this part has minimal impact on overall revenue, so the tariff may not be a major concern. On the other hand, consider a company with a product that relies on Canadian aluminum—a likely scenario given that in 2023, the United States accounted for 90% of the total value of Canada’s aluminum exports. In this case, the tariff impact could be significant, making it essential to explore alternative supplier sourcing or cost-saving strategies.
3. Find Alternative Suppliers
Relying too heavily on suppliers in tariff-affected regions can expose your business to sudden cost increases and regulatory challenges. If you discover that key suppliers are impacted by tariffs, use supplier databases, trade networks, and industry partnerships to explore alternative supplier sourcing options.
Nearshoring or working with regional suppliers can not only help mitigate risks from tariffs but also provide a competitive advantage by lowering logistics costs and reducing geopolitical risks. Plus, diversifying your supplier base, rather than relying on a single source, increases flexibility and adaptability in times of trade uncertainty.
For long-term stability, consider reshoring by investing in domestic production and regional supplier networks. While shifting production requires upfront investment, it can provide greater protection against future tariff fluctuations and trade disruptions.
4. Monitor Your Supply Chain
Finally, use AI supply chain monitoring to stay on top of the latest tariff and supply chain news. Leveraging AI-powered supply chain monitoring solutions enables businesses to track tariff updates, regulatory changes, and supplier risks in real time. These tools use predictive analytics and automated alerts to help procurement teams assess potential disruptions before they impact operations—and act quickly.
Using AI to Navigate Tariffs and Build a More Adaptive Supply Chain
As global trade policies continue to shift, companies need more advanced tariff risk mitigation techniques. Resilinc is answering this challenge with AI-powered tariff solutions designed to help businesses navigate tariff uncertainty. Launching in 2025, Resilinc’s agentic AI platform will enable companies to instantly assess tariff impacts. Businesses will be able to interact with an AI agent (similar to ChatGPT), asking questions about supply chain exposure and receiving actionable recommendations tailored to their operations.
“With the way tariffs are changing, businesses can’t afford to react after the fact. Our AI agents will give companies immediate insights into tariff exposure and help them take action before disruptions impact their bottom line,” said Kamal Ahluwalia. Resilinc’s latest innovation marks a shift toward more adaptive, technology-powered trade management, ensuring businesses stay competitive in a rapidly changing global market.
***
To learn more about tariffs impact on global supply chains (and how you can protect your supply chain), check out our special report on U.S. Reciprocal Tariffs.
