Navigating Tariffs: What to Know, and How to Prepare

For today’s interconnected global supply chains, the possibility of new tariffs introduces considerations that could influence sourcing strategies, operations, and margins across industries. While the exact scope of these potential changes remains unclear, businesses can take proactive steps to prepare and reduce their risk of exposure.

Drawing from past tariff cycles, organizations can see how strategic planning and resilient supply chains are essential to managing uncertainty. Following are some ways that a new round of tariffs may affect some industries, and how automation and regionalization can help businesses navigate these challenges effectively.

Pharmaceuticals. The reliance on China for active pharmaceutical ingredients (API) and key starting materials makes this sector particularly vulnerable, especially in generic pharma. These specialized inputs are difficult to source elsewhere, leaving businesses with few options in terms of alternative sources. Even India, which is increasingly becoming a dominant force in generic pharma API supply, depends on China for key starting materials.

Fresh Produce. Geographic constraints further complicate tariff responses. For example, crops like avocados and mangoes require specific climates and growing conditions, and