Donald Trump’s recent election victory has already begun to impact global supply chains. With his proposed trade policies, including the introduction of steep tariffs on imports from China, many companies are taking proactive steps to adapt their production and sourcing strategies to avoid potential risks.
While some businesses are waiting to see which policies are implemented, others are already moving to make changes. Trump’s promises include general import tariffs and measures that could impose costs of up to 100% on Chinese goods, which would significantly increase expenses for US businesses and potentially disrupt international trade dynamics.
The lessons from Trump’s first term are influencing these decisions. During his initial presidency, trade conflicts with China pushed many companies to diversify their supply chains. They began shifting production out of China, exploring partnerships in other Asian nations, or even relocating manufacturing operations back to the United States.
Premier Inc., a healthcare products supplier, has already moved key production, such as masks and gowns, closer to the US. According to CEO Michael Alkire, the company’s partners are urging even greater independence from Southeast Asian suppliers to better withstand potential tariff hikes or trade restrictions.
Fortune Brands, known for home product brands like Moen faucets and Yale locks, has also overhauled its supply chain since 2017. By establishing alternative sourcing options, the company is better prepared to handle tariff increases. CEO Nick Fink emphasized that while maintaining multiple supply sources can be more expensive, it is essential for staying agile in a volatile trade environment.
In the consumer goods sector, Yeti has expanded its production outside of China, opening a second facility and planning a third. By the end of next year, half of the company’s drinkware production capacity will be located in countries outside China. Similarly, outdoor gear manufacturer Clarus is shifting production of its Black Diamond products, such as headlamps and shoes, to Vietnam and other countries. To mitigate the impact of potential tariff increases, the company is considering stockpiling inventory to stabilize prices.
Electric vehicle maker Rivian is also taking steps to prepare. CEO Robert Scaringe explained that the company has carefully selected suppliers unlikely to be affected by steep tariffs and has secured long-term contracts to reduce risks in its supply chain. Rivian is also monitoring the impact of tariffs on raw materials such as steel and lithium, which could affect production costs.
The uncertainty surrounding Trump’s trade policies is pushing companies to prioritize flexibility, diversification, and resilience. While some are adopting a wait-and-see approach, others are proactively reshaping their supply chains to be better prepared for potential disruptions.
Whether Trump’s proposed tariffs and restrictions will bring sweeping changes remains to be seen. However, for many businesses, the possibility alone is driving long-term adjustments that could reshape how global supply chains operate in the years to come.