Navigating Tariffs: Embracing Opportunities Through a Realistic Lens

Under President Donald Trump, tariffs on imports to the U.S. have become a importent and ongoing challenge for businesses. Brian Whitlock, a VP analyst at Gartner, shared insights during the Gartner Supply Chain Symposium/XPO in Orlando on May 6, emphasizing that while these tariffs are here to stay, companies can manage their effects.

“The administration has been quite active with its trade policies; it’s tough to keep track of everything,” Whitlock noted. “It’s not just about tariffs; they’ve also eliminated various ways to avoid them,” including duty drawbacks and certain free trade zone benefits.

Whitlock likened the situation to being tossed around on a ship in rough seas. As an example, a toy manufacturer might face an additional $1.5 million in costs that retailers refuse to absorb or consider relocating production outside the U.S.due to rising expenses.

For those hoping for a shift in policy or legal intervention against Trump’s aggressive trade stance—especially regarding China—Whitlock advised caution: “Don’t expect any major pivots if courts rule against him.” However, he encouraged businesses to look for silver linings: “Can you turn this turmoil into opportunities?”

Since everyone is navigating these turbulent waters together, now is an ideal time for companies to evaluate how competitors will be impacted and strategize ways to capture market share from them.

“Identify your unique advantages,” he suggested. “How are your competitors changing? What new habits are emerging among consumers?” To thrive amidst these challenges, firms should leverage their strengths and explore avenues for growth through new markets and innovation.

This moment also calls for reevaluating your competitive landscape—identifying both old rivals and new entrants who may pose threats due to their responses (or lack thereof) regarding tariffs and supply chain inefficiencies.

Moreover, don’t shoulder all tariff-related costs alone! Whitlock recommended renegotiating contracts with customers or collaborating with industry partners on product redesigns so that financial burdens can be shared more equitably across the supply chain.

A recent survey by Gartner revealed that 45% of companies plan on passing tariff costs onto customers while 43% aim at mitigating impacts through supply chain strategies; only 7% intend simply absorbing those costs themselves.