Navigating Global Trade and Supply Chain Challenges in 2025

Global businesses are facing a complex environment for cross-border trade in 2025.

Under the banner of safeguarding national security interests, protecting strategic local businesses, and advancing foreign policy objectives, tariffs and trade barriers have been on the rise since 2020, especially for high-tech, dual-use, and artificial intelligence technology and the materials and equipment needed to produce them (such as semiconductors). As trade tensions intensify, tariffs are poised to surge even higher. 

In a 2024 Descartes survey of the most significant global trade issues facing logistics and supply chain leaders today, respondents identified rising tariffs and trade barriers as their top challenges. This concern was shared by organizations of all sizes, although it was more worrying for fast-growing companies.

Given the strong likelihood of additional tariffs on a wide variety of goods and countries of origin, U.S. importers are bracing themselves for the impact. They recognize that significant re-engineering of sourcing strategies may be in order to mitigate potentially higher costs — and there’s no time to waste. China has already enacted new trade controls against U.S. companies such as Raytheon, Boeing and Lockheed Martin, adding a total of 28 to an export control list and signaling a willingness to retaliate against the U.S. with its own sanctions.

In addition, if history tells us anything, China will also employ non-tariff barriers (such as administrative hu…