While there’s still some uncertainty about the timing and the exact details, it seems clear that the new Trump Administration will impose tariffs on goods coming into the U.S. from China, Canada, Mexico and other countries in the coming weeks and months. While the new administration conducts a review of U.S. trade policies, both Canada and Mexico have promised to impose their own tariffs on American exports in retaliation. 

As the logistics industry watches and waits, the stakes are high. In 2023, American imports from Canada totaled $428 billion, while imports from Mexico were even higher, at $479 billion. American businesses shipped good valued at $676 billion to these two North American neighbors in 2023 — about a third of all U.S. exports. 

As the new tariffs takes shape over the coming months, U.S. businesses will be conducting their own supply chain analysis to mitigate their financial impacts. They’ll be looking for new suppliers, exploring new network models, mapping new trade routes, and identifying new transportation modes and partners. 

The challenge for LSPs? Delivering consistent results amid uncertainty 

Obviously, logistics service providers (LSPs) will also have to make dramatic changes over the coming months, pivoting strategically along with their customers. They’ll need to sense the impacts of tariff changes, understand customer concerns, and make operational changes — sometimes big ones — in response.  

For example, with 40% of manufacturers planning to increase their domestic sourcing, LSPs will see shifts in transportation and warehousing that might create excess capacity in some regions, while stretching capacity in others. Rates and costs may skyrocket as supplier networks shift. And LSPs will need to operate as efficiently as possible, because 33% of companies plan to counter the impact of tariffs by cutting their costs.  

As the competitive market for logistics services expands, contracts and changes over the coming months, how will they continue to deliver consistent, reliable customer value in a landscape characterized by great uncertainty? How can they avoid supply chain disruptions that may come with new supply chain environments? 

The solution? Supply chain digitalization, visibility and interoperability 

There’s no denying that the challenge facing LSPs in 2025 is complex. But advanced technology provides a proven solution. More than 175 of the world’s leading LSPs already partner with Blue Yonder on supply chain digitalization. And that number is steadily growing as LSPs encounter new problems, including tariffs, that exceed the capabilities of their internal manual analysis.  

Enabled by artificial intelligence (AI) and advanced decision science, today’s digital solutions help LSPs pivot swiftly, smartly and profitably as conditions change — whether in their own supply chain or their customer’s supply chain. Digitalization offers the only way to respond in real time to a landscape that’s changing, often dramatically, in real time. 

By acting now to adopt digital solutions, LSPs can prepare themselves for the new tariffs, other disruptions and dynamic market conditions they’re sure to encounter this year. While digitalization can literally impact and improve every aspect of daily logistics operations, three key capabilities stand out as we consider the extreme volatility LSPs will be navigating over the next few months. 

1. Command and control: Sense, explore and pivot 

Blue Yonder’s Command and Control Center, powered by AI agents, equips LSPs with real-time, multi-tier visibility and orchestration across the supply chain network, including warehousing, transportation, and other functions.  

When new tariffs, capacity changes and rising rates occur, this robust digital capability not only senses the change in real time — it also applies advanced decision science to explore possible responses. For example, if an LSP can’t find capacity in its current network, the Blue Yonder Command and Control Center applies AI agents to extend that network, in seconds, in search of a resolution. In 2025, every second is going to matter. This command and control capability is imperative for LSPs who need to serve customer needs amid significant volatility. 

2. Synchronizing execution: Respond in an intelligent, orchestrated manner 

It’s essential to recognize changes and re-plan in seconds. But it’s equally important to minimize any lag time between planning and execution. That’s where the concept of synchronized execution comes in. As soon as a new course of action has been identified, digitalization enables LSPs to reset their end-to-end operating parameters, automatically. No matter what happens, synchronization keeps LSPs on track to achieve on-time in-full (OTIF) performance targets, service-level agreements (SLAs), cost controls, resource utilization objectives, sustainability metrics and other goals. 

Let’s say new tariff documentation, or a route change to avoid tariffs, causes a transportation delay. By synchronizing Blue Yonder transportation management, order management and warehouse management solutions, LSPs can enact a rapid, strategic response across the end-to-end supply chain. Inventory can be shifted, order promises can be updated, resources can be re-allocated, and loads can be replanned — in minutes, with little to no human intervention. That’s the beauty of synchronizing execution.  

Synchronizing execution augments or replaces human analysis, gut feelings and on-the-fly choices with AI-enabled decision engines, guided by real-time data and working toward pre-defined outcomes. Even in a volatile environment, LSPs can be confident they’re acting to maximize operational efficiency, client service, growth and resilience at all times, and in every supply chain function. Benefits of synchronizing execution can include revenue growth, warehouse labor cost reductions, overall transportation cost savings, and decrease in safety stock. 

3. End-to-end interoperability: Share data and visibility via a common platform 

Over time, LSPs have built complex technology systems that include transportation management systems (TMS), warehouse management systems (WMS), robotics, automation and other solutions. Real-time visibility, shared data and tight integration of all these systems is critical as logistics networks grow more intricate. Even the most advanced and intelligent digital solutions can’t add maximum value if they’re siloed from other systems and unable to ingest shared real-time data.  

LSPs can depend on Blue Yonder Platform to drive this integration and real-time connectivity. They can link processes and workflows across warehousing, transportation, order, yard and returns management. This end-to-end integration enables LSPs to scale quickly and adapt to market changes across the supply chain.  

With their solutions connected on Blue Yonder Platform, LSPs can: 

  • Access all the insights they need, all at once. An “at a glance” user interface delivers detailed information, without the need to click across multiple screens and solutions. 
  • Know what’s changed in an instant. A “ticker” appears at first log-in, alerting users to changes since their last log-in — and surfacing issues across every interoperable solution. 
  • Minimize the risk of human error. Digitalization and real-time connectivity ensure the accuracy of all insights. Humans won’t miss a new tariff or other disruption. They also won’t make a decision in the order management function that negatively impacts transportation or warehousing. 

Blue Yonder Platform seamlessly integrates with modern data systems and marketplaces, enabling flexible data management and easy adaptability for LSPs. 

Act now to prepare for a reshaped logistics landscape 

The details may be unclear, but one thing is certain: The global logistics industry will see some big changes in the coming weeks and months. New tariffs and trade regulations will impact international shippers and their logistics partners — but also domestic teams who will encounter huge changes in costs and capacity when those multinational teams pivot. 

From nearshoring and friendshoring to no-shoring, successful LSPs will be those who are ready for anything this year. Digitalization is the clear solution. And now is clearly the time to act. 

For LSPs who are ready to take quick action, Blue Yonder is ready too. Our modernized, scalable, and secure platform supports seamless integration with existing systems, reduces total cost of ownership (TCO), and accelerates onboarding and training. By leveraging Blue Yonder’s leading cloud-native digital solutions and future-ready tech stack, LSPs can quickly embrace digitalization — and begin earning a return in as little as eight weeks. 

Tariffs, new trade regulations and other changes are coming. Make sure you’re ready for them by visiting our LSP website or contacting Blue Yonder today.