In today’s unpredictable trade environment, staying ahead of tariff changes has become a real challenge for global businesses. As new trade rules roll out and countries respond with their own moves, companies are left trying to figure out what it all means, and how to deal with it.
To better understand this topic, we spoke with Jens Stenquist, supply chain expert at Optilon, about how businesses are responding to shifting tariffs and why adaptability, scenario planning, and smart supply chain design are essential for staying ahead.
Hi Jens! How are recent tariff changes affecting global supply chains, and what are the biggest challenges companies face today?
— The recent tariff changes announced by the U.S. government are having a huge impact on global supply chains. Right now, many companies are focused on three key areas. First, they’re working to fully understand the practical implications of the new tariffs. Second, they’re closely watching how the affected countries might respond, as retaliatory measures could further disrupt supply dynamics. And third, they’re assessing whether, and how, they should reorganize or rebalance their supply chains to mitigate the financial impact on their bottom line.
What recent changes in tariffs or trade policies should supply chain experts be aware of?
— At the moment, supply chain professionals need to stay on top of all developments, not just the actions taken by the U.S., but also the potential responses from the countries affected. We’re still in a period of uncertainty, and the full impact of these changes isn’t entirely clear yet. Understanding both sides of the equation is critical to anticipating the broader consequences for global trade and operations.
What strategies can companies use to minimize risks related to tariffs and customs duties?
– It depends on how global your supply chain is and whether you use single or multiple sourcing. But in any case, it’s crucial to have a dedicated planning process or a task force that runs detailed scenario analyses regularly. High-level views aren’t enough. With tariffs often exceeding 20%, the financial impact can be major, so companies need precise, data-driven strategies to stay ahead.
What are the most effective ways for companies to minimize the impact of rising costs due to tariffs?
– Setting aside the political side, the real priority is to explore different scenarios for how to adjust sourcing, both for finished products and their components. We see growing demand for what’s known as supply chain design: optimizing the physical flow of goods to reduce cost and complexity. To do this well, companies need tools that can simulate and test a wide range of different scenarios. That kind of capability is essential for making clear, data-driven decisions.
What role does digitalization or automation play in helping companies manage tariff-related challenges?
— Digitalization and automation play a crucial role. Companies need to run and re-run hundreds of scenarios quickly, adjusting inputs as new information emerges. Without systems that support this speed and flexibility, it’s almost impossible to respond effectively, and the cost consequences can be severe.
What is your best advice for companies preparing for upcoming trade shifts and regulatory changes?
— Start by creating a dedicated task force to own scenario planning and support key functions like Sales, Finance, and Operations with timely insights. Equip this team with the right tools, such as advanced software and digital supply chain models, and ensure they know which data to prioritize and how to run accurate simulations. Strong coordination with the rest of the organization is key, so their analysis can directly inform planning across departments. And importantly, make scenario planning a standing topic in leadership meetings to ensure alignment and readiness for strategic decisions.
How do you foresee tariffs evolving over the next months, and what factors could influence these changes?
— Honestly, it’s hard to predict, and I don’t think anyone has clear insight into the future. I expect that we’ll see ongoing adjustments until the full picture stabilizes. That’s why I recommend setting up a dedicated task force to focus on this. Having one team manage tariff-related changes will free up the rest of the organization to focus on day-to-day operations and execution.
While the future of global trade policy remains uncertain, one thing is clear: adaptability is no longer optional. Companies that invest in resilience, automation, and proactive planning today will be far better equipped to handle tomorrow’s disruptions.
