Navigating an evolving situation: tariffs, supply chains, and uncertainty

Ever since the US presidential election was decided last November, we knew that the trade landscape in 2025 would be both complex and dynamic. But the levels of uncertainty today are greater than many of us would have predicted just six months ago. The impacts of US tariffs and reciprocal tariffs imposed by other nations are literally changing from day to day, with unpredictable effects on supply chains. We’re already one-third of the way through the 90-day tariff reduction agreed between U.S. and China; this has allowed some time for the global situation to cool but it nevertheless remains a matter of both uncertainty and concern.

In short, nothing is guaranteed. Today, trade tariffs are real and present operational disruptors and the scope of their impact is difficult for most business leaders to predict.

Even during relatively normal times for international trade relationships, small policy changes between trading partners create ripple effects in the form of cost increases, shipping delays, or threats to supplier relationships. The current tariff situation has dramatically multiplied those disruptions along with the level of uncertainty business leaders face when planning for the future.

Last month, I was at the Gartner Supply Chain Symposium in Orlando and, unsurprisingly, the topic of tariffs was extensively debated during the entire event, both on and off stage. One significant theme I observed throughout the week was that supply chain leaders are striving to look beyond the current news cycle, seeking the best resources and tools to make the most informed decisions, whatever the future holds.

Data can anchor us during times of uncertainty

The uncertain environment created by so many tariff policy changes has created a sense of urgency for many leaders. Many feel pressured to make decisions quickly, even in the absence of data and insights that could deliver better outcomes. To combat this uncertainty, companies need a holistic view of their supply chains that shows the connections between suppliers, routes, and facilities within a single, dynamic model – a digital twin of the entire supply chain.

This level of visibility anchors decision-making by providing supply chain teams with a network-wide understanding of cost structures, supplier dependencies, and logistics implications. When a new tariff or some other shift is felt, companies can immediately assess the landed costs, supplier viability, or fulfillment lead times, without relying on fragmented data or isolated analyses.

More importantly, this visibility – and the consolidated data it provides – form the foundation for impactful scenario analyses. Using a comprehensive digital twin that is supplemented by deep  supply chain analytics and decision intelligence functionalities, leaders can weigh the costs and benefits of different sourcing, routing, and procurement strategies. When further enhanced with the AI enablement, they can be empowered to make the best decisions, whatever the current situation on the ground.

The benefits of end-to-end supply chain visibility

Companies are, in fact, already meeting the challenges of increasingly complex global markets by utilizing AI. For example, we’ve helped global healthcare leader Sanofi manage a complex global supply chain that delivers more than 5 billion doses of their medicines and vaccines annually.

Faced with a need to become more agile and resilient, Sanofi partnered with Bluecrux and implemented Axon™, our AI-enabled supply chain analytics and decision intelligence platform. Built on a digital supply chain twin foundation and fueled by real, transactional data, the insights and analyses that Axon delivered helped Sanofi to adjust planning parameters and stock levels, reducing their excess inventory and freeing up working capital. The ability to identify bottlenecks and optimize lead times means Sanofi can adjust more quickly to shifts in the supply chain, ensuring that products get to the patients who need them.

This level of visibility can help supply chain leaders in almost every industry combat the uncertainty that has become the norm in the post-pandemic world. By leveraging AI’s ability to deliver accurate insights from data, companies can become proactive rather than reactive, no matter the circumstances.

Learn how an AI-enabled supply chain analytics and decision intelligence platform delivers the insights leaders need to combat supply chain variability.