As the global trade landscape braces for potential upheaval, businesses must act swiftly to safeguard their operations. Accelerating inventory, rethinking supply chains, and taking proactive measures are essential steps to prepare for the challenges on the horizon.
The re-election of Donald Trump marks a significant turning point for global trade. With talk of steep tariffs, particularly on imports from Canada and Mexico, the North American trade environment is set for a seismic shift. Companies operating across borders must prepare for the fallout—and fast. Waiting for clarity could leave organizations scrambling to respond when changes take effect.
One of the immediate threats is the possibility of 25% tariffs on goods from the U.S.’s closest trading partners. Such measures would upend industries reliant on cross-border supply chains, like automotive manufacturing, where components often cross borders multiple times before assembly. For businesses dependent on the efficiencies of the USMCA framework, this is no ordinary disruption—it’s a wake-up call.
The Value of Acting Now
Trade policy may feel unpredictable, but standing still is not an option. Companies need to adopt strategies that will serve them no matter how the details unfold. These so-called “no-regret moves” aren’t just about damage control; they’re about positioning your business to stay competitive, whatever comes next.
A first step is to ensure you’ve got the right team in place to respond. This isn’t the time for silos or scattered decision-making. Organizations need a centralized crisis team that brings together leaders from procurement, logistics, finance, and other key areas. Empower this team to act quickly, adapt to new information, and keep everyone aligned on a cohesive plan.
Game Out the Possibilities
When the rules are shifting, planning for just one scenario is a gamble. Companies need to think like chess players, anticipating several moves ahead. By mapping out different tariff scenarios—such as incremental increases or full-scale trade wars—you can stress-test your strategies and build contingency plans that account for the most likely disruptions.
Scenario planning isn’t a one-and-done exercise. As new information emerges, revisit your assumptions, refine your plans, and ensure your team is ready to pivot when needed.
Don’t Wait to Move Inventory
If tariffs are announced, supply chains will feel the strain almost immediately. Border crossings could face massive delays as companies rush to move goods before new policies kick in. Businesses need to think ahead, accelerating production and pulling shipments forward whenever possible.
It’s also worth exploring alternatives to traditional transportation routes. Rail, short-sea shipping, and even air freight can help keep critical goods flowing when land borders become bottlenecks. Consider securing additional warehouse space to stockpile pre-tariff inventory, giving yourself a cushion to weather the initial turbulence.
Shape the Narrative Before It Shapes You
Tariffs don’t just disrupt supply chains—they impact jobs, prices, and relationships. Waiting for the fallout to unfold is a risky strategy. Businesses should take a proactive approach to communication, highlighting how these measures could ripple through their industry and communities.
Engaging policymakers, industry groups, and even the public can help ensure the broader consequences are understood. While these efforts won’t necessarily stop new tariffs, they might influence their implementation or duration. Being vocal and visible can also strengthen your reputation as a thoughtful and responsible industry leader.
Keep an Eye on the Bigger Picture
Beyond immediate actions, businesses need to reassess their long-term strategies. Tariffs may push some companies to rethink their production footprints, opting for more localized manufacturing and sourcing to minimize cross-border dependencies. While this shift involves significant investment, it could prove to be a competitive advantage in an increasingly protectionist trade environment.
Cash conservation will also be critical. Tariffs can strain liquidity through higher costs, reduced production, or even plant closures. Companies must focus on maintaining financial flexibility to navigate these challenges without compromising their operational resilience.
Looking Past the Headlines
Trade disruptions aren’t just about tariffs—they reflect broader political and economic trends that will shape the global market for years to come. Protectionism, once a talking point, is now a bipartisan reality. Businesses must accept that the rules of trade are changing and adapt accordingly.
While this environment poses challenges, it also offers opportunities for companies willing to act decisively. Those that anticipate disruptions, invest in resilience, and adjust their strategies will not only survive—they’ll gain a critical edge in a transformed marketplace.
The question isn’t whether your business can weather this storm. It’s whether you’re ready to chart a course through it and emerge stronger on the other side. The time to act is now.
