Disruptive SRM For Turbulent Times: Navigating the New Era of Tariff-Based Trade Wars

 

The world could certainly do without yet more supply chain volatility. On February 3, 2025, Trump 2.0 unleashes new tariffs, reigniting trade wars and compounding global fragility. With rising costs, blocked trade routes, and entrenched geopolitical hostility, many businesses are already being pushed to their limits.

 

Is this the dawn of a new era for global supply chains?

 

Trade tensions have re-emerged with force as Trump 2.0 administration implements sweeping tariffs to commence February 3, 2025, reigniting trade war tensions that had simmered since the original Trump presidency. These new tariffs targeting key imports from economic Asian superpower China, and U.S neighbours Canada, and Mexico, include raw materials like steel and electronics components, and will no doubt send shockwaves not only regionally but through global supply chains. Alongside these latest trade measures, geopolitical tensions have worsened across multiple regions, including prolonged conflict in Ukraine, widening hostilities in the Middle East, with Red Sea route disruptions continuing in 2025 across key shipping routes.

 

The timing couldn’t be worse for a world already grappling with inflation, resource shortages, and economic instability. The latest wave of tariffs will heighten operational costs and create new bottlenecks for industries reliant on cross-border trade. For sectors like automotive manufacturing, electronics, and construction industries heavily dependent on international suppliers, the situation threatens both profitability and stability.

 

These evolving challenges underscore the urgent need for businesses to overhaul their supplier relationship management (SRM) strategies, prioritising adaptability and collaboration in order to survive in this era of escalating trade conflicts.

 

A Long Road of Disruptions

 

While current events may feel unprecedented, global supply chain disruptions have been an ongoing concern for many years. Even before the pandemic, McKinsey’s 2019 report Shifting the Dial in Procurement, warned that businesses could lose up to half their EBITDA to disruption by 2030. The pandemic accelerated this trajectory, with lockdowns, port closures, and labour shortages crippling supply chains worldwide.

 

In 2023, the US imported $1.2tn worth of goods from Canada, Mexico and China combined, as reported in the Guardian. Now, in 2025, a turbulent landscape, already the de facto new normal  will see, though not for the first time, the rise of protectionist policies and renewed trade hostilities. New tariffs, retaliatory trade measures, and the tightening of export controls inevitably prompting businesses to re-evaluate their procurement strategies. Many companies will almost immediately face increased costs for materials and will race to identify alternative supply sources to mitigate risks.

 

Tariffs and the High Stakes of Supply Chain Strategy

 

These tariff-based trade wars will be far from symbolic – they will reshape the rules of global commerce. For example, past U.S. tariffs on Asian manufactured goods had already strained long-standing supplier agreements, leading to delayed shipments and production slowdowns. Conversely, retaliation from trade partners previously targeted U.S. exports, particularly agricultural and technology products, further disrupting supply chains.

 

Without strategic realignment, many businesses risk becoming casualties of this economic crossfire. Contracts designed in stable times offer little protection in a world where trade policies can shift overnight. The days of rigid, long-term supply agreements are over. In this volatile environment, SRM strategies must become more dynamic, to enable rapid pivots in supplier relationships, cost structures, and procurement models.

 

Technology as a Shield Against Disruption

 

To navigate these volatile landscapes, including escalating trade conflicts, organisations are already turning to technologies to promote greater agility, transparency, and resilience. Platforms like Suppeco provide businesses with the tools to dynamically manage supplier relationships, granting real-time visibility into performance metrics and trade risks.

 

Suppeco’s model emphasises collaborative engagement, allowing businesses to coordinate with suppliers to pre-emptively mitigate tariff impacts. Suppeco has created an orbit of seamless partner insights, where companies can use the platform’s relationship hub capabilities to identify alternative suppliers outside of high-risk trade zones, negotiate flexible pricing terms, and ensure compliance with evolving trade regulations. Automated workflows further streamline processes, reducing administrative burdens that often slow down responses to disruption.

 

Collaboration as a Competitive Necessity

 

Tariff wars are a stark reminder that no business can navigate supply chain challenges alone. The most resilient companies are those that build deep, trust-based co-resilient partnerships with their suppliers. These partnerships enable joint problem solving and innovation-critical capabilities for reducing vulnerability to trade shocks and other disruptions.

 

For procurement leaders, this means leveraging technologies that enable real-time data sharing and collaborative planning. Tools like Suppeco not only enhance visibility and efficiency but also foster supplier engagement centred on shared goals and values. These collaborative strategies help organisations maintain operational continuity and uphold growth and sustainability objectives even amidst a volatile geopolitical climate.

 

The Musings of this New Normal 

 

The resurgence of tariffs and trade wars could well mark the beginning of a challenging new chapter for global supply chains. Organisations that cling to rigid, outdated procurement models will struggle to keep pace. In contrast, those that embrace adaptive SRM solutions and foster stronger supplier partnerships will be better positioned to withstand the turbulence of shifting trade policies.

 

In today’s environment, disruption is no longer an exception – it’s the rule. Businesses must take proactive steps to build supply chain strategies capable of thriving in a world defined by constant change and mounting geopolitical pressures. Collaboration, innovation, and resilience will be the keys to success in this new era of tariff-based trade conflicts.