Businesses are being advised to reassess their procurement and supply chain strategies as the effects of U.S. tariffs ripple across global trade, driving up shipping costs and prices on a wide array of goods.
The sweeping tariff measures imposed by U.S. President Donald Trump, along with retaliatory actions from major trade partners, have thrown supply chains into disarray. Companies are now scrambling to secure vital materials and manufactured products, many of which face growing uncertainty.
According to a global survey by the UK’s Chartered Institute of Procurement and Supply (CIPS), nearly half of procurement professionals are already reevaluating supplier relationships and looking to source goods from alternative countries. The survey, which polled 65,000 members worldwide, also found that many businesses are boosting inventory levels to guard against further disruption. Concern about supply chain risks over the coming year is now at an all-time high, CIPS reports.
Ben Farrell, CIPS chief executive, describes the current landscape as “a critical tipping point” for supply chain transformation.
“With rising protectionism, new tariffs, and ongoing geopolitical shocks, global supply strategies are being reconfigured in real time,” said Farrell. “This isn’t theoretical anymore—our members are living it and adapting fast.”
A recent report from Dun & Bradstreet supports this outlook, noting that business optimism fell 1.3% in Q2, following a steep 12.9% drop in Q1. Export-heavy industries such as automotive, electronics, and metals have seen significant declines in confidence, particularly in the U.S., Mexico, South Korea, and Japan. Tariffs and shifting trade rules have triggered cost increases and erratic demand across these sectors.
The report also highlights continued financial stress for businesses, pointing to high borrowing costs, sticky inflation, and tight liquidity—factors that are dampening hopes for interest rate relief in the near future.
In the short term, many companies have responded by stockpiling goods ahead of tariff deadlines. U.S. copper imports surged in March amid speculation that levies on refined metals and raw materials could come sooner than expected.
Container shipping volumes also spiked in March, according to U.S.-based ITS Logistics, as companies rushed to bring in goods. But this uptick is expected to reverse soon.
“April will likely show strong import numbers from front-loaded inventory,” said ITS Logistics. “But by May and possibly into June, we anticipate a sharp drop—similar to the cliff experienced during the early stages of the Covid-19 pandemic.”
This pattern could drive up shipping rates on specific trade lanes. Peter Sand, chief analyst at freight analytics firm Xeneta, noted that Japan–U.S. routes could see significant pressure as companies rush to move goods.
Looking ahead, Sand warned that businesses must prepare now to weather ongoing tariff impacts.
“These tariffs are unprecedented in both scale and severity,” he said. “They are reshaping the foundations of global trade. Companies need to begin adapting immediately if they hope to stay competitive.”
Sand advises firms to simulate new supply chain configurations, analyze freight rate trends on both major and secondary routes, and assess port infrastructure and reliability when considering alternatives.
Jackson Wood, director of industry strategy at Descartes’ Global Trade Intelligence unit, echoed the need for a strategic rethink.
“Every sourcing shift involves trade-offs, depending on how far ahead a company is looking—whether that’s one year or ten,” said Wood. “Can a business truly become self-sufficient in the U.S.? That’s the question.”
He added, “The assumptions that once defined global trade no longer apply. We’re now operating in a completely new paradigm—one where companies are essentially rebuilding their strategies from the ground up.”
Source: Global Trade Review