3 Ways to Build a Resilient Supply Chain Amid Tariff Increases

Tariffs are a persistent challenge for brands relying on global supply chains, impacting profit margins and increasing costs. Learn how to minimize disruptions by auditing suppliers, negotiating smarter contracts, and optimizing logistics to build a more resilient supply chain.

Author

Aaron Alpeter
March 05, 2025

In partnership with

3 Ways to Build a Resilient Supply Chain Amid Tariff Increases

With rising tariffs impacting costs, brands must build a resilient supply chain to stay competitive.

  1. Audit and Diversify Suppliers – Identify risks, explore alternative sourcing, and ensure supplier reliability.

  2. Negotiate Smarter with Vendors – Leverage volume, explore long-term contracts, and find cost-saving opportunities.

  3. Optimize Logistics Costs – Consolidate shipments, explore alternative routes, and improve inventory management.

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What We’re Reading

  • Trade War Updates: Get the latest updates on U.S. trade wars, including tariffs on multiple countries and how these changes affect your business operations. (Izba)

  • Canada and Mexico Gambled on a Free Trade Future. The Bet Is Turning Sour: Canada and Mexico, having heavily invested in free trade, are now facing significant economic challenges due to President Trump's recent implementation of 25% tariffs on their goods. These tariffs are expected to test their economies severely, comparable to past crises like the global financial downturn and the COVID-19 pandemic. (WSJ)

  • Track One Car Part’s Journey Through the U.S., Canada and Mexico—Before Tariffs: A transmission module's production involves multiple crossings between the U.S., Canada, and Mexico, highlighting the deep integration of the North American automotive industry. The proposed 25% tariffs by President Trump could significantly disrupt this system, leading to increased vehicle prices and reduced demand, particularly affecting American automakers like General Motors, Ford, and Stellantis. (WSJ)

  • U.S. to Hit Chinese Ships With Hefty Port Fees: The Trump administration plans to impose substantial fees on Chinese-built or Chinese-flagged ships entering U.S. ports, aiming to bolster the domestic shipbuilding industry and counter China's dominance in global maritime trade. This strategy could increase shipping costs for importers and consumers, as carriers might reduce services to smaller U.S. ports to offset the added expenses. (WSJ)

Business Worth Buying

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Key Takeaways:

  • Building vs. Buying: Always work on building your capabilities. If acquisition opportunities arise, consider them, but never rely solely on the necessity of a deal. Keep your leverage by being prepared.

  • Integration Success: Successful integrations hinge on focusing on people, processes, and technology. First impressions matter—ensure clear and thoughtful transitions to unite teams effectively.

  • Strategic Acquisitions: Companies often get bought and not sold. Identifying potential buyers early and aligning product-market fit with buyer expectations can accelerate and enhance acquisition opportunities.

Head over to your favorite podcast platform, subscribe to Build a Business Worth Buying, and start listening today!

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