The August 1 deadline for tariff negotiations has arrived, and with it, the realization that global trade volatility will be a persistent obstacle, not a temporary disruption. If you were still haven’t prepared your supply chain, now is the time to act. "2025 is already the most volatile year for global trade in recent memory," says Mark Morgan, President, Commercial Operations, Kinaxis. "In just six months, tariff activity has doubled the pace of the 2017–2020 trade war. Only this time, it’s moving faster, hitting more sectors, and proving far harder to predict."
Rather than make a Hail Mary move, you need a strategic framework that shifts your supply chain from short-term, reactive firefighting to long-term adaptability. And you need something that delivers return on value along the way. Enter the 30-60-90 plan for tariff response.
This 90-day framework puts adaptability, speed, and cost efficiency at its core, transforming your supply chain while building core capabilities for the next disruption.
Days 0-30: Stop the bleed
Now that tariff deadlines are certain, it’s time to start damage control and establish stability. Four critical actions will center your operations and provide the foundation for everything that follows.
Deep-dive cost mapping
Your first priority is understanding exactly where you're vulnerable. This isn't about broad categories. You need granular visibility into every SKU and material that could face increased tariffs.
Start with the high-impact areas: copper, automotive components, steel, and electronics typically face the steepest tariff increases, but don't stop there. Create a comprehensive inventory that maps each product to its tariff classification, current duty rates, and potential increases under various scenarios.
The key metric here is landed cost impact. For each affected item, calculate the total cost increase including not just the tariff itself, but associated freight, handling, and cash flow implications. Then, translate this into margin impact across your product portfolio. This analysis becomes your north star for prioritizing every subsequent decision.
Supplier risk triage
Not all suppliers are created equal in a tariff environment. Develop a clear classification system that separates tariff-affected suppliers from unaffected ones, then drill deeper into sub-categories based on impact severity and substitutability.
Your immediate focus should be on Tier 1 and Tier 2 suppliers in high-risk categories. Engage them directly to understand their backlog situations, current buffer stock levels, and their own contingency plans. Many suppliers are already exploring substitution options or alternative sourcing, and you want to be part of those conversations early.
Create supplier scorecards that track not just traditional metrics like quality and delivery, but new factors like tariff exposure, geographic flexibility, and crisis response capability. This framework will guide your sourcing decisions for months to come and should be updated as new tariff policies come into play.
[Read more: Achieve agile, intelligent supply planning for greater business impact]
“The automotive and industrial sectors are continuing to feel pain. Most EU countries and the UK have a tariff deal in place, but the steel industry is awaiting finalization of negotiations.”
Compliance and customs readiness
Tariff changes often come with administrative complexity that can be as disruptive as the cost increases themselves. Your customs and compliance teams need to be ahead of this curve.
Start with Harmonized System (HS) codes—the foundation of all tariff classifications. Audit your current codes against new tariff schedules and update any that have changed or been refined. This is particularly critical for products that might shift between categories or face new sub-classifications.
Pay special attention to low-value shipment processing, especially for goods from APAC. Many organizations discovered their systems weren't equipped to handle tariffs on previously duty-free small shipments. Test your processes now, before you're dealing with delays at the border.
Kanban buffer strategy
Traditional lean principles assume predictable costs and supply flows. Tariffs disrupt both assumptions. Your kanban and inventory strategies need tactical adjustments to prevent operational stalls.
Identify the critical parts where tariff-induced cost increases or supply disruptions would halt your operations entirely. These aren't necessarily your highest-value components. They're your highest-impact ones. A five-dollar electronic component that stops a $50,000 machine deserves special attention.
Build strategic buffers for these items but do it intelligently. Rather than blanket inventory increases, create targeted stockpiles based on lead times, tariff timing, and alternative sourcing options. This buffer strategy buys you time to implement more sophisticated solutions in the coming months.
[Read more: Tariffs are here: How supply chains are responding in real time]
Days 30-60: Rewire and pilot
Month two shifts from crisis management to strategic adaptation. You're moving from "stop the bleeding" to "heal and strengthen." This phase requires both analytical rigor and tactical experimentation.
Scenario modeling and sensitivity analysis
With your baseline established, it's time to explore alternatives systematically. Develop comprehensive models that simulate different sourcing scenarios, considering not just tariff rates but total landed costs, lead times, quality implications, and capacity constraints.
Your modeling should explore multiple dimensions: geographic shifts (nearshoring, alternative countries), supplier diversification, and domestic sourcing options. For each scenario, calculate the full financial impact including one-time transition costs, ongoing operational changes, and risk adjustments.
Don't forget tariff pass-through analysis. Model different pricing strategies to understand how much tariff cost you can absorb versus passing to customers, and how market dynamics might change your competitive position. This analysis informs both immediate pricing decisions and longer-term market strategy.
2x
Tactical sourcing shifts
Analysis without action is worthless. Use month two to launch pilot programs for alternative sourcing, focusing on your most tariff-vulnerable inputs.
Start with something like metals and electronics, which often face the highest tariffs and have the most developed alternative supply bases. Identify two to three potential suppliers for each critical component and run small-scale trials to evaluate quality, delivery, and total cost of ownership.
These pilots serve multiple purposes: they validate your analytical models with real-world data, build relationships with new suppliers before you desperately need them, and provide proof points for larger organizational changes. Document everything. These learnings will inform your scaling decisions in month three.
Strategic tariff advisory
Tariff management is becoming a specialized skill. If you don't have in-house trade expertise, now is the time to engage external advisors who understand the regulatory landscape and can help you navigate opportunities for relief.
Explore tariff exclusion applications for critical components where alternatives don't exist or would create significant operational disruption. These applications take time to process, so starting early is essential.
Investigate duty drawback programs, foreign trade zones, and other mechanisms that might reduce your effective tariff burden. Consider whether modifications to your import/export processes could qualify you for preferential treatment under existing trade agreements.
Update procurement documentation
Your existing contracts probably don't account for the new tariff reality. Month two is the time to renegotiate key agreements with updated terms that reflect current market conditions.
Focus on force majeure clauses that address government-imposed cost increases like tariffs. Develop frameworks for cost-sharing when tariffs affect supplier costs and establish clear mechanisms for passing through unavoidable increases.
Consider implementing tariff escalation clauses in customer contracts as well. These provide protection against future increases while maintaining transparency about cost drivers with your customers.
[Read more: Disruption is inevitable. Profit is possible.]
Days 60-90: Institutionalize and scale
Month three transforms your tactical responses into sustainable competitive advantages. This is where you build the organizational capabilities that will serve you not just through current tariff challenges, but through whatever disruptions come next.
Network redesign
Use your pilot results to inform larger-scale changes to your global footprint. This might involve shifting warehousing to lower-tariff zones, adjusting production locations, or reconfiguring your distribution network.
Build dual or multi-sourcing capabilities for your most tariff-vulnerable components. This isn't just about backup suppliers. It's about creating operational flexibility that allows you to shift volumes quickly based on changing conditions.
Consider the total network effects of these changes. A supplier switch that reduces tariff exposure might increase transportation costs or create new quality risks. Optimize for total system performance, not individual component costs.
Technology and tariff visibility
Your existing ERP and supply chain management systems probably weren't designed for a world of rapidly changing tariffs. Month three is the time to upgrade or implement new capabilities that provide real-time visibility and decision intelligence.
Look for control tower solutions that can track tariff rates across your entire product portfolio and automatically flag items where rate changes affect your cost assumptions. Integrate this with your procurement and pricing systems so tariff impacts are visible in real-time decision making.
Build analytics capabilities that help you evaluate trade-offs between different sourcing options, considering not just current costs but potential future scenarios. The goal is to shift from reactive tariff management to proactive optimization.
Cross-functional governance
Tariff management can't be a procurement-only responsibility. Establish governance structures that bring together finance, procurement, logistics, and commercial teams in regular review cycles.
Weekly tariff impact reviews should become standard practice, tracking not just current cost impacts but emerging risks and opportunities. Integrate tariff considerations into your sales and operations planning (S&OP) cycles so these factors influence demand planning, capacity allocation, and financial forecasting.
Create clear escalation procedures for when tariff changes require rapid responses. The organizations that succeed in this environment are those that can make and implement decisions quickly when conditions change.
Advocacy and communications
Your stakeholders, from senior leadership to customers, need to understand both the challenges you're facing and the proactive steps you're taking to address them. Month three is the time to formalize your communication strategy.
Develop clear narratives that explain your tariff response strategy, including the investments you're making in resilience and flexibility. For customers, focus on how your proactive approach protects their interests and ensures supply continuity.
Create regular reporting mechanisms that track your progress against the 90-day plan and demonstrate the value of your investments in tariff resilience. These communications build confidence and support for continued investment in supply chain capabilities.
“Many companies have put in place contingency plans since December or January, and it’s paying off.”
Long-term strategic considerations
The 90-day framework gets you stabilized and responsive, but true competitive advantage comes from thinking beyond immediate challenges. Tariffs are likely to remain a fixture of global trade for years to come—two-thirds of trade professionals expect them to persist for at least the next four years. This reality requires fundamental changes in how you think about supply chain strategy.
Mirror global negotiations in your business
Just as countries use tariff negotiations to secure better terms, you can leverage proposed tariff rates as negotiating tools with suppliers. Use the threat of tariff-induced cost increases to secure better pricing, improved terms, or enhanced service levels from your current supply base.
Explore nearshoring not just as a tariff mitigation strategy but as a way to improve lead times, reduce inventory requirements, and gain better control over your supply chain. The total value proposition often extends far beyond tariff savings.
Convert costs into intelligence opportunities
The investments you're making in tariff tracking and response capabilities create data and insights that can improve your overall supply chain performance. Use tariff response as a catalyst for broader improvements in forecasting, supplier management, and operational agility.
Subscribe to trade regulation tracking services and build this intelligence into your strategic planning processes. Organizations that stay ahead of regulatory changes can turn compliance challenges into competitive advantages.
Build responsive organizational capabilities
The most successful organizations aren't just optimized for current conditions—they're built to evaluate and respond quickly to unpredictable changes. Use your tariff response experience to strengthen these capabilities across your organization.
Develop scenario planning capabilities that extend beyond tariffs to other potential disruptions: geopolitical tensions, climate events, pandemic responses, or technology shifts. The organizational muscles you're building now will serve you through whatever challenges emerge next.
Meet the moment and emerge stronger than ever
Tariffs present significant challenges, but they also create opportunities for organizations willing to respond strategically rather than reactively. The companies that emerge stronger from this environment will be those that use tariff pressures as a catalyst for building more intelligent, agile, and resilient supply chain capabilities.
The 90-day framework provides the structure for this transformation, moving you from crisis management through tactical adaptation to sustainable competitive advantage. But the real value comes from the organizational capabilities you build along the way—the systems, processes, relationships, and insights that prepare you not just for current tariff challenges, but for whatever disruptions the future holds.
Start today. In a world of persistent trade uncertainty, the organizations that act fast and think strategically will be the ones that thrive.
Learn more about how Kinaxis is helping companies stay agile and responsive against tariff-related disruptions, including why one company says, "We know that with Maestro basically whatever anyone throws at us, we're able to come up with a solution that will get us through it."
