Tariffs: A Catalyst for Supply Chain Transformation
In Spring 2025, President Donald Trump intensified his protectionist trade policies by announcing a sweeping set of new tariffs. On April 2nd, he introduced a universal 10% tax on all imports, with even higher duties on specific countries, reaching up to 245% on Chinese goods. This decision reflects a broader strategy to reindustrialize the U.S. and safeguard domestic employment.
Adding to this shift, Trump signed an executive order ending the “de minimis” exemption for imports from China and Hong Kong, effective May 2nd, 2025. Previously, this exemption allowed parcels valued at under $800 to enter the U.S. duty-free. Removing this threshold will have a significant ripple effect on global supply chains, particularly for e-commerce giants such as Shein and Temu.
In this volatile context, global supply chains must now contend with unprecedented regulatory complexity. The traditional linear model of globalization — characterized by low-cost and frictionless trade — is giving way to more resilient, hybrid, flexible, and technology-centric frameworks. Every stakeholder is impacted: manufacturers, retailers, logistics providers, solution vendors, and consumers. Agility, anticipation, and real-time orchestration are becoming critical levers of competitiveness.
Manufacturers: Facing Economic and Strategic Pressure
For manufacturers, the sudden increase in tariffs is creating a direct margin shock. Rising import costs for raw materials and components are difficult to fully pass on to customers. Pressure is mounting on both ends: upstream for sourcing and downstream for pricing.
To navigate this new environment, companies must make structural decisions: reshoring production, diversifying suppliers beyond risk zones, or investing in regional safety stock. The end of the de minimis rule is particularly impactful, applying tariffs of up to 145% on low-value Chinese products that were previously exempt. This poses an immediate challenge for manufacturers relying on Chinese parts and subassemblies.
Retailers: Navigating Imported Inflation and Shifting Customer Expectations
For retailers, rising tariffs compound ongoing logistics stress. Costs are increasing across the board, threatening both pricing strategies and customer loyalty.
The consequences are broad: delisting certain items, refocusing on U.S. or EU-made products, or reshaping delivery and return policies. The current instability is prompting a rethinking of logistics partnerships and a move to bring inventory closer to the final customer — even if it means multiplying warehouses and micro-hubs.
E-commerce players like Shein and Temu, which heavily relied on the de minimis exemption, will need to redesign their U.S. distribution models — likely transforming their pricing structure and increasing market volatility.
Supply Chain Leadership: Navigating in Permanent Uncertainty
Supply chain leaders must now operate in a context of ongoing uncertainty. The era of predictable, linear logistics is behind us. Today’s reality requires scenario planning and the integration of customs, regulatory, and geopolitical variables into operational management tools.
This growing complexity reinforces the need for real-time visibility, continuous simulation, and intelligent orchestration of flows. Tools such as OMS, TMS, WMS, and digital twins make it possible to combine data from multiple sources — inventory, orders, transport, tax — and enable rapid, informed decision-making.
A well-configured Order Management System (OMS) thus becomes a strategic control tower, capable of automatically arbitrating based on duties, lead times, and business priorities.
Technology Providers: Enabling Smart Orchestration
Tech vendors are now critical allies in navigating this transformation. Their platforms must:
- Integrate regulatory changes without requiring heavy reconfiguration;
- Enable dynamic arbitration between logistics sources or channels;
- Simulate customs impact scenarios based on product origin and fulfillment route.
In this new era, orchestration is no longer just about optimization — it becomes
a strategic capability at the intersection of physical, informational, and financial flows.
The Consumer: Passive Victim or Active Influencer?
Tariff instability is being felt all the way to the checkout basket. Higher prices, stockouts, longer delivery times — all directly affect the customer experience.
Some brands are choosing to withdraw from highly taxed or complex markets, focusing instead on simpler, regional operations. At the same time, there's a renewed consumer interest in local or European products, with greater scrutiny of origin and transparency.
The customer becomes a strategic actor, influencing sourcing, assortment, and fulfillment decisions.
Global Flow Reconfiguration: Towards a Multipolar Supply Chain
On a macroeconomic level, global supply routes are being redrawn. Over-reliance on single-source countries like China is being reevaluated. Nearshoring (regional relocation) and reshoring (domestic relocation) are gaining momentum, particularly in the U.S. and Europe.
Some companies are now considering reshoring not only production, but also fulfillment operations, in order to avoid tariff thresholds and simplify compliance.
This reconfiguration, however, comes at a cost: it requires logistics investments, IT realignment, and a redesign of distribution frameworks.
How Kbrw Supports Businesses in This New Environment
In this evolving trade and regulatory landscape, supply chains must become agile, intelligent, and orchestrated. That’s exactly where Kbrw comes in — with modular, sovereign, and real-time solutions to support transformation.
With its orchestration platform (OMS, WMS), Kbrw empowers companies to:
- Adapt quickly to regulatory and tariff changes by configuring business rules (duties, VAT, priority flows) without custom development;
- Optimize logistics arbitrage by considering legal frameworks, operational capacities, and business goals;
- Accelerate transformation through new business models (product servicization, circular economy);
- Gain visibility and control via a unified system that connects warehouses, carriers, suppliers, and internal teams;
- Integrate all supply chain stakeholders into a cohesive flow;
- Deploy a sovereign, scalable architecture ready for multi-country, multi-warehouse, multi-brand environments.
In an uncertain world where the ability to pivot is a strategic advantage, Kbrw gives manufacturers, retailers, and logistics players the tools to take back control — and turn trade constraints into a competitive edge.
