Firstly, there is the initial step of managing the immediate impact of the tariffs. This involves analysing current import structure and identifying which products will be affected by the new tariffs to understand the potential cost impact. It’s then about working out resilience and mitigation strategies. This will look different for every organisation but may include optimising product classifications, diversifying suppliers, adjusting supply chains and financial planning. Many businesses will have begun this work already but the implementation of these tariffs adds new urgency. The second area to focus on is the macro-economic impact. We don’t know if these tariffs will be in place for one week, one month or one year. There is certainly the potential that tariffs of this scale could have a cooling effect on the American, Canadian and Mexican economies. Businesses need to be prepared for that and start thinking through scenarios. If economies begin to slow down, what impact will that have on businesses? Continue reading…
