The ‘Trump Round’ of trade negotiations has unleashed widespread disruption to global commerce, triggering a wholesale reorganization of supply chains and forcing countries to choose between capitulation and coordinated resistance.  What began as an attempt to reassert American economic dominance has instead accelerated the fragmentation of the global trading system into competing regional blocs.

Lisa Anderson whose consultancy LMA Consulting, has worked with manufacturers for two decades, observed in this World in Motion Magazine article, that companies are fundamentally reassessing their global strategies. To read more about her article, “Strategies to Move Supply Chains from Global to Local with Resiliency.”

“What we’re seeing is that businesses are looking at countries that are safer for the long term, because the geopolitical risk that has built up in combination with the tariffs were like the straw that broke the camel’s back.” From the US perspective, Anderson notes that while “most of the tariffs have been negotiated or worked out for most places”, the psychological impact on business confidence has been profound and lasting.

“One company that previously imported goods into the US before distributing them to Canada has reorganized its supply chain to import directly into Canada, avoiding double tariffs. Another firm that had built a manufacturing facility in Mexico to reduce reliance on Chinese imports was caught off-guard when Mexico initially became a heavy tariff target, forcing it to refocus on Latin American markets.”

The China Conundrum

China’s role in global trade remains largely irreplaceable. 

“I do not believe we’re going to get out of China anytime soon, it’s simply not possible given the sheer scale of manufacturing,” Anderson explains. 

Technological Adaptation

Companies preparing for continued disruption are pouring investment into automation and digital technologies to remain competitive while adjusting production footprints. As Anderson explains: “Automation allows firms to scale more quickly and consistently. By substituting technology for labor in routine tasks, companies can expand output without being constrained by labor shortages or rising wage bills. The real advantage, however, lies in the data – firms that digitize their operations gain visibility across their supply chains, which means they can spot bottlenecks early, reroute shipments in real time, and make faster, evidence-based decisions.” To gain additional insights, download LMA’s eBook, “How AI Powers Smart Supply Chains and Smarter Decisions“. 

From Shock to Strategy

When forming trade strategies in 2025, Anderson says that organizations should pursue steady preparation rather than overreaction.

“Resilience requires investment before the crisis ends,” she notes. “The companies that emerge stronger will be those that put systems in place now – digital visibility, automation, and flexible capacity – so that when conditions stabilise they can scale at speed. You can’t wait for certainty and then expect to go from zero to full capacity overnight.”

Read the full article at World in Motion Magazine, 2025 #02

 

If you are interested in reading more on this topic:
Tariffs, Transformation & the Future of Supply Chain