Overcoming Tariff Wars with an Optimised Supply Chain

On 1st February 2025, the United States of America imposed a 25 percent tariff on all imports from Canada and Mexico. The same witnessed retaliatory measures from the two neighbouring countries, after which the announcement was withdrawn.

The U.S. further went on to impose 10 per cent to nearly 50 per cent tariffs on several other countries worldwide, which invited mixed reactions throughout the world (this time barring Canada and Mexico). Post these reactions, the U.S. announced a 90-day pause on tariffs for all countries except China.

These tariff wars reflect, in terms of volume crunch, on global trade, and they make way for unnecessary geopolitical tensions that make cargo movement more volatile. In order to tackle this unprecedented situation, technology intervention can be a boon. Historically, any economy that has adopted technology prior to any crisis has tactically survived a volume crunch, thereby posing new benchmarks for growth during uncertainties.

In this paper, we discuss about different tariff wars that rocked the world and how economies tackled them with technology intervention. Also, a roadmap for digital adoption is presented for the industry to survive.

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