Global sourcing: The Trump effect in 2025
Tariff policy is perhaps the most anticipated and discussed initiative proposed by the incoming Trump administration—with much at stake for the global economy, businesses, and consumers. Trump has proposed levies of 10 to 20 percent on most imports and up to 60 to 100 percent tariffs on China. And while we don’t yet know what level of tariffs or export controls will be enacted, precisely which sectors will be impacted the most, or when this will happen, we do know that companies will need more resilient strategies to get ahead of the inevitable disruption to trade flows and resulting uncertainties across global supply chains. Companies should be proactively pursuing inflation mitigation strategies, diversifying sourcing, renegotiating contracts, and where currently more reliant on China, pursuing more near- and friendshoring efforts or finding alternative sources. And all manufacturers will need a new framework to decide where their products will be sourced and made amid the uncertainty that 2025 will surely bring.
Global Sourcing & Supply Chains Post Pandemic
Amid a post-pandemic recovery, global supply chains have already been experiencing a massive rewiring, fuelled by global conflicts in Ukraine and the Middle East, shifting sustainability priorities, and the rapid adoption of transformative technologies such as AI, among others. In 2025, many of these changes will come to an inflection point. Companies that rely on cross-border operations should be paying attention. Even before the 2024 super-cycle of elections around the world, economic fragmentation was rising, and trade patterns were shifting—a dynamic clearly illustrated by the shake-up in import sources for the United States over the past four years. In 2023, Mexico replaced China as the top exporter to the United States. And in 2025, those shifts will surely continue.
ET2C International Global Sourcing Experts
At ET2C International we have seen a similar trajectory for our clients strategic sourcing. A rapid exploration of:
-Emerging sourcing market to reduce China supply risk
-Dedicated buying office team to deliver margin defence
-Quality & Compliance strengthening
Now is the time for every company to ask new questions about its supply chain footprint. During the pandemic in 2020, manufacturers around the world joined a growing conversation about building resilience. But many of those ideas (reshoring, diversifying sourcing, using AI to avoid risk) never fully came to life. 2025 will be the year that businesses no longer have a choice.
Disruption is coming to global sourcing, supply chain and procurement
As Kearney succinctly summarise – Disruption is coming; what will you do to prepare? Now is the time to rapidly implement a strategic sourcing plan. Making sourcing simple, safe and effective. Contact@et2cint.com
