Currently the biggest risk with US tariffs is the instability of policy and the speed at which decisions are implemented. For UK and EU companies this means being proactive is going to be essential to reduce the impact of uncertainty.

In order to deal with US tariff increases many businesses are reviewing legal clauses, supply chains are being rerouted, they are auditing tariff exposure line-by-line, using HS codes, origin tracing, and real-time trade data.

Business leaders can also consider other practical, effective supply chain changes to help mitigate the impact of tariffs, such as tariff engineering and Free Trade Agreements (FTAs).

At Descartes we believe two key things will help reduce the shock of unexpected tariff rises. Firstly, businesses must treat global trade management as a strategic capability and not just a back-office function. Secondly, automation will allow businesses to respond quickly, reducing the impact to day-to-day operations.