BEYOND THE BUZZ Dissecting Supply Chain Issues: Tariffs
LONGTERM OUTLOOK
LIKELY GAINS
Taris aren’t causing supply chain transformations—they’re accelerating changes already underway. In 10 years, we’ll see shorter, more regional supply chains optimized for resilience. Companies will prioritize supplier diversity over lowest price. Global trade won’t decrease—it will fragment into regional ecosystems with higher technology integration. The winners will be companies building supply chains around flexibility rather than pure eciency. – MATT LHOUMEAU , CEO Concord Trump-era taris are prompting companies to diversify sourcing, reducing reliance on a single country. Over the next 10 years, global trade will become more regionalized and digitized, with supply chains shaped by political alliances , tech-driven logistics, and a push toward national and economic resilience. – GEORGE MAKSIMENKO , CEO Adexin Unpredictable taris are part of a larger trend of disruption. This trend is nudging smart supply chain companies to develop technology that can give their customers deeper flexibility and visibility, oering it as a bulwark against instability. In 10 years, digital-first logistics providers will be the norm. – TIMOTHY O’CONNELL , Senior Director, Sales Operations Odyssey Logistics NEARSHORING OVER RESHORING Nearshoring, or friendshoring, appears much more likely to benefit from taris this time around than reshoring, and Mexico is considered to be a net beneficiary, according to BofA Global Research. Only 20% of respondents expect significant reshoring, while 40% call for mild relocation to the United States within select sectors including electronics, biotechnology, and metals and mining. These sectors are more capital- than labor-intensive, and are expected to take one to three years to complete any reshoring initiatives. Source: BofA Global Research. Based on a proprietary survey of 56 analysts, based in 9 countries, covering 1,029 companies that represent more than $38 trillion of market cap.
There will be a dramatic increase in domestic manufacturing , especially of critical products related to national security. There will be a transition to regional supply chains (nearshoring) with an increase in suppliers in Latin America as well as a transition to friendshoring around the globe. Although there will be large variances depending on the supplier, we expect it to be mildly inflationary overall and negligible in the long-term. – LISA ANDERSON , President LMA Consulting Group, Inc. We will continue the shift to domestic production, and more trade balance than we have now. Hopefully our product quality will improve, and our on-time delivery track record for experts will improve as we compete globally on more than price, due to taris. – DANNY SCHNAUTZ , President Clark Freight Lines Inc.
Taris are pushing companies to rethink global networks and supply chain bases, shifting toward nearshoring, friendshoring, and regional hubs . Reliance on single sources or taris- prone markets like China will decline, while investments in tech that boosts agility and insight will become critical to mitigate risks, maximize revenue, and optimize costs. Global trade will need to balance stakeholder demands for compliance, security, and safety, inevitably adding complexity. – KRISTIAN O’MEARA , SVP of Strategic Initiatives JAGGAER
28 Inbound Logistics • July 2025
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