The U.S. is entering a new era of trade relations, one characterized by the recalibration of trade policy, escalating duty rates, and the use of tariffs and trade policy as a negotiation tool.
These shifts in trade relations have pushed many retailers into reactive mode, often with limited options to change where and who they purchase goods from.
To navigate this new landscape successfully, retailers need to proactively rethink their long-term supply chain strategies and work with their suppliers to navigate the new normal.
From Reactive to Proactive
Reactive decision-making can carry substantial risk, especially given the dynamic nature of trade policy from year to year. If a retailer makes a major modification to their supply chain or inventory strategy based on a potentially short-lived policy change, they may incur unnecessary costs, delays, or inefficiencies as policies are reversed or delayed — a pain many retailers felt over the first half of 2025.
