Erratic and unpredictable changes to US trade policy have roiled global supply chains during 2025. Businesses are working diligently to assess the potential impact of tariffs and the overall economic uncertainty they have created. While we can’t predict where tariff policies will ultimately land, there are steps manufacturers can take now to ensure they are properly positioned to protect their supply chains and their bottom line.

What can businesses do?

To prepare for the months and years ahead, manufacturers need to prioritize responsiveness and effectiveness. To meet that goal in the near term, they will need to focus on impactful actions that can be taken quickly.

Review your end-to-end supply chain

Consider how tariffs (and combinations of tariffs) could affect every step in the supply chain. Every business and every supply chain are unique, so the plan you put in place will need to be fine-tuned for your situation. Tariffs will affect both your decision-making and that of your suppliers, so companies will need a clear vision of their supply networks and the challenges faced by the sector as a whole.

Don’t rush to stockpile imported goods

At first glance, it might seem smart to stock up on goods in order to avoid potential price increases and shortages. It would be wise to reconsider that idea because stockpiling is a short-term solution that can cause major headaches, including freight and warehousing bottlenecks as everyone else tries to do the same thing. It may be a better use of time to begin reconfiguring your supply chains to reduce the exposure to tariffs.

Determine the extent to which you can pass along costs

The inflation of recent years has made customers more sensitive to price increases, and will likely make them more resistant to higher prices in the current environment. Carefully gauge the tolerance level among your customer base; companies that can adjust supply chains in such a way to avoid increasing prices above that threshold will gain an edge against competitors (who are struggling with the same dynamics that you are).

Accelerate scenario planning

The unpredictability of US trade policy means that we could end up with something close to the status quo—or a radical reimagining of global trade. With such a wide range of possible outcomes, companies can’t just plan for two or three likely scenarios over a 36-month time horizon; they need to be able to plan for many more possibilities and then adjust those plans in real time. The ability to plan ahead has never been more important.

Take advantage of available technology

Companies have a toolkit of advanced technologies available to help them manage the increasing complexity of global supply chains. Artificial intelligence (AI) and machine learning (ML) enable businesses to process and respond to changes in tariff policy much more quickly and nimbly than a human acting alone. Predictive AI can analyze vast amounts of existing data to forecast the impact of tariffs on every aspect of the supply chain.

How can Blue Yonder help?

The Blue Yonder platform offers a number of benefits to companies who are navigating the current trade environment.

Transportation Management: As new supplier relationships are built, Blue Yonder Transportation Management solutions can help businesses re-draw distribution networks and prioritize cost-saving efficiency.

Blue Yonder Network: Businesses that are part of the Blue Yonder Network can more easily change suppliers as needed, which will be key as tariffs begin to affect suppliers up and down the supply chain. Real-time communication drives out latency and minimizes lead times.

Integrated Demand & Supply Planning: This AI- and ML-enhanced solution from Blue Yonder simultaneously analyzes changing demand patterns and supply availability so that companies can maximize efficiency, resiliency, and service level attainment. This solution’s unique approach to concurrent planning harmonizes necessary supply, sourcing factors, and capital resource availability to reduce costs, increase capital resource efficiency, and cut inventory waste.

Factory Planner: This Blue Yonder solution facilitates agile production planning, allowing manufacturers to easily re-optimize production changes in their factories in near real-time as market conditions change. New constraints or operating conditions, such as frequent supplier changes due to tariff changes, are no problem.

Today’s challenges are tomorrow’s opportunities

The speed and unpredictability of the changes to US trade policy under the Trump administration are unprecedented in the modern era. This rapidly shifting landscape has compressed the normal amount of time businesses have to change the tactical and strategic aspects of supply-chain management.

The only way for businesses to succeed in this environment is to prepare to be nimble. Planning ahead with the right strategies and technology will have the effect of crash-proofing your supply chain, giving you the ability to adjust to sudden shocks and take advantage of new opportunities in the aftermath.