As Donald Trump’s election victory continues to stir uncertainty over trade relations, US businesses are recalibrating their supply chains in anticipation of possible tariffs and other trade restrictions. While some companies are holding back to see how policies unfold, many are already taking steps to minimize risks associated with Trump’s proposed trade agenda.
Trump has pledged to implement tariffs as high as 100% on imports from China, a move that could dramatically increase costs for US companies and disrupt established global trade networks. This promise echoes his first presidency, during which trade tensions with China led many businesses to diversify their sourcing and move production away from reliance on single regions or suppliers.
Healthcare provider Premier Inc. is already adapting its strategy by relocating the production of essential goods, such as masks and medical gowns, closer to the United States. CEO Michael Alkire shared that Premier’s partners are urging further diversification to reduce exposure to potential tariff increases and supply chain uncertainties.
Fortune Brands, known for its Moen faucets and Yale locks, has long focused on flexibility within its supply chain. CEO Nick Fink explained that while secondary suppliers can be more expensive, maintaining multiple sourcing options allows the company to quickly adjust to changes such as new tariffs.
Outdoor brand Yeti is also making moves to reduce its dependence on China. By the end of next year, the company plans to have half of its drinkware production in countries outside of China. Similarly, Clarus, the parent company of Black Diamond, is shifting its production of headlamps and footwear to Vietnam and other countries. The company is also considering building up inventory to stabilize prices should tariffs rise.
Electric vehicle manufacturer Rivian is taking a proactive stance by selecting suppliers unlikely to be affected by new tariffs. CEO Robert Scaringe emphasized that Rivian has diversified its supplier base and secured long-term contracts to mitigate trade risks. The company is also monitoring potential price hikes on critical materials like steel and lithium.
The uncertainty surrounding Trump’s trade policies is forcing businesses to focus on supply chain flexibility, diversification, and resilience. Whether Trump’s proposed tariffs come to fruition or not, companies are preparing for the possibility by adjusting their sourcing strategies and production plans.
As the global trade environment remains unpredictable, US businesses are positioning themselves to thrive by building more robust and adaptive supply chains that can weather potential disruptions.
