Recent tariff changes, particularly those targeting key manufacturing regions, have added significant cost pressures and uncertainty to global supply chains. Increased import duties on raw materials and finished goods is forcing businesses to either absorb higher costs or pass them on to consumers. As a result, companies are reevaluating sourcing strategies, seeking alternative suppliers, and investing in supply chain resilience to mitigate risks. For small and mid-sized businesses (SMBs), rising costs due to tariffs, inflation, and transportation disruptions are a growing concern. Many SMBs operate on tight margins, making it difficult to absorb additional expenses. The NetSock Survey sheds light on the challenges businesses are facing in response to tariff changes. According to the survey, 63% of SMBs anticipate a moderate impact from new tariffs, while 70% cite rising costs as their top challenge.
With tariffs driving up costs and increasing supply chain volatility, SMBs are turning to technology to enhance decision-making and improve resilience. According to the NetSock Survey, 76% of SMBs are investing in data-driven tools to optimize inventory management, forecast demand, and streamline supply chain operations. By leveraging advanced analytics, AI, and automation, businesses can gain real-time visibility into their supply chains, identify potential disruptions early, and make proactive adjustments. Companies that embrace these technologies are better positioned to adapt quickly to market shifts, reduce costs, and maintain a competitive edge in an increasingly uncertain trade environment.
To mitigate the impact of tariffs and build long-term resilience, businesses must take proactive steps to enhance supply chain flexibility. One key strategy is implementing a “China plus one” approach, which reduces reliance on a single region by diversifying manufacturing and sourcing locations. Additionally, regional diversification helps companies spread risk and adapt to changing trade policies more effectively. Another essential approach is shifting risk through outsourcing. By leveraging third-party logistics (3PLs) and supply chain financing solutions, SMBs can manage cost volatility and improve operational efficiency. These partnerships allow companies to focus on core business functions while reducing exposure to tariff-related disruptions.To stay ahead of trade uncertainties, companies must also integrate trade disruptions into supplier contracts. Negotiating agreements that account for potential tariff increases and currency fluctuations ensures financial stability. Developing cost models that factor in unexpected trade barriers helps businesses anticipate and manage risks proactively. Finally, businesses should emphasize scenario planning and visibility to navigate market fluctuations. Utilizing predictive analytics and real-time visibility tools allows companies to identify potential disruptions early and adjust accordingly. Strengthening communication and contingency plans with suppliers ensures a more agile response, helping businesses maintain stability even in uncertain trade environments.
In an era of increasing trade uncertainty, technology, supplier diversification, and proactive planning are the key pillars for businesses looking to navigate tariff-related challenges. Companies that invest in digital transformation, data-driven insights, and automation will gain the agility needed to respond quickly to disruptions. Likewise, businesses that embrace flexible sourcing strategies and regional diversification will be better positioned to mitigate risk and maintain stability.
Rather than adopting a “wait and see” approach, businesses must take action now to future-proof their supply chains. Delaying strategic changes could lead to higher costs, supply shortages, and competitive disadvantages. By leveraging technology, strengthening supplier relationships, and planning for multiple scenarios, companies can turn uncertainty into an opportunity for long-term growth and resilience.
