This week, the U.S. Supreme Court ruled that the widespread tariffs President Trump implemented last April exceeded his authority and must be revoked. Trump then responded with a flat 10% tariff across the globe. After a year of chaos, supply chain professionals must once again adjust their protocols and pricing to reflect the latest version of reality.
The tariffs have been a “drag" on companies, contributing to low morale in manufacturing, increased inflation and a worsening job market, NPR reports. Meanwhile, in order for the U.S. Treasury to repay the taxes collected, “the cost would run to $120 billion, or 0.5% of gross domestic product,” notes The New York Times.
But businesses aren’t counting on that money to meaningfully add to their bottom lines: Refunds, if they happen, could take months or years, as most companies have already taken into account higher shipping, compliance and supply chain operations costs. Unfortunately, “organizations that made massive capital investments in U.S. facilities in order to avoid tariffs may now find their business cases to be flawed,” according to the latest ASCM Insights blog post, which curates advice from several subject matter experts. Furthermore, it may be impossible to reestablish relationships with suppliers that were dropped in favor of cheaper options.
The good news is that many organizations are already discovering some solutions:
Prioritize network insights. As always, end-to-end visibility is paramount. Per DC Velocity, “Companies that have strong visibility into their customs exposure and trade flows will be better positioned to respond quickly to any future tariff rulings.”
Act quickly. Though no one knows when — or if — refunds will be available to businesses, shippers should maintain momentum to be eligible for any potential federal reimbursement, advises the head of research at Freightos.
Ensure clarity and predictability. The Port of Los Angeles offered reassurance that it’s ready to manage any and all fluctuations in cargo volumes: “The only certainty is uncertainty. Freight can’t wait — and certainty helps keep it moving. … Clarity and predictability in trade policy are essential to maintaining cargo velocity, safeguarding jobs and supporting wider economic competitiveness.”
Diversify trade routes. Dr. NoelmHacagaba, CEO at the Port of Long Beach, noted in our conversation last month that Long Beach (incidentally, the site of this September’s CHAINge: North America) was tapping rail connection to key markets to decrease travel time for cargo and keep it moving as quickly and cheaply as possible.
Lean into technology. AI-powered tariff management systems can help make sense of the wildly different tradr rules. Their agentic workflows automate the assignment of Harmonized System codes — the classification that determines what tariff rate applies to any given import — and can calculate country of origin under trade rules, Fortune reports. The model can also help companies calculate the impact of tariffs across their entire trade route and extended supplier network, as well as secure potential IEEPA refunds.
Stay informed. ASCM’s tariff tracker brings you the most important tariff news from global media sources. This free resource also includes links to helpful podcast episodes, expert interviews and more.
Solidify supply chains for the long haul
Regardless of how your organization chooses to approach the tariff question, a strong and stable supply chain will be essential. Leverage ASCM’s free, SCOR-based Supply Chain Maturity Assessment to pinpoint critical capability gaps and precise architectural shifts to advance your people and elevate performance. Start the assessment today.
