Gartner® Report: Use Tariff Volatility to Drive Competitive Advantage
Gartner® describes how businesses must prepare for ongoing tariff volatility under the second Trump administration, both as new U.S. tariffs are announced and in anticipation of countermeasures by trading partners.
What to know from the Gartner® report #
“Businesses must prepare for ongoing tariff volatility under the second Trump administration, both as new U.S. tariffs are announced and in anticipation of countermeasures by trading partners. This research details actions for executive leaders to turn tariff volatility into a competitive advantage.”
Key Findings: #
“Tariff changes are a key pillar of the second Trump administration’s agenda and will lead to higher import costs for goods into the United States. Enterprises have a few options to consider. They can increase prices and face the associated demand-side risk, absorb the additional costs themselves, or undertake mitigation actions — such as redesigning their supply networks.”
“The scale of tariff changes proposed has not occurred in the United States in more than 50 years. Enterprises will need to work through significant uncertainty and conjecture about the impact of these changes. This is especially important when coupled with the potential for retaliatory measures by trading partners, competitor moves, and U.S. counter responses.”
Despite massive investments in visibility through technology, many operational and frontline staff report being overwhelmed by the number of alerts they get and struggle to understand the impact of disruption through time.
While agility has been a key element of supply chain strategy long before risk management emerged as a key initiative for supply chain leaders, many frontline and operational staff report deviating from defined processes to execute disruption responses, and are afraid to make decisions.