Global trade regulations are constantly evolving, creating uncertainty for businesses. Tariffs shift, export restrictions tighten, and supply chains face growing risks. Companies must navigate these challenges strategically to avoid disruptions. In a recent episode of the SCMR podcast Frictionless Supply Chain, trade expert Karen Murphy provided insights into how organizations can manage compliance, mitigate risk, and adapt to changing trade policies. Here are three key takeaways for businesses looking to maintain stability in an unpredictable trade environment.
1. Trade Compliance Is More Than Just Paperwork
Many companies think of trade compliance as filling out forms and waiting for approvals. But as Murphy explains, it’s much bigger than that. Compliance extends to software, intellectual property, and even casual conversations with foreign nationals.
“There’s a misconception that trade compliance only applies to physical products,” Murphy said. “In reality, sharing sensitive technology—even in a casual conversation—can require an export license.”
Ignoring these rules can result in massive fines or even loss of access to key markets. Companies need to be proactive in understanding trade regulations beyond just import-export paperwork.
2. Semiconductor Supply Chains Are Under Tight Scrutiny
The U.S. government is cracking down on semiconductor exports, especially to China. Murphy highlighted how American companies initially moved chip production overseas to cut costs but now face tough restrictions on exporting high-tech components.
“The U.S. government thought Chinese factories would stick to making chips for basic appliances,” Murphy said. “But as they moved into higher-end tech like mobile devices and servers, the stakes got a lot higher.”
Now, businesses must navigate complex export controls to ensure they don’t violate new semiconductor restrictions. Keeping up with these shifting regulations is critical to avoiding costly mistakes.
3. Data Analytics Is the Key to Managing Trade Risk
Companies that survive in today’s volatile trade environment aren’t just reacting to new regulations—they’re predicting them. Murphy pointed to companies like Flex that use advanced supply chain software to model different scenarios and plan ahead.
“A lot of businesses are now investing in supply chain visibility,” Murphy said. “They’re using data to predict potential risks rather than just reacting when issues arise.”
Having the right trade compliance data—such as country-of-origin rules, tariff classifications, and risk assessments—can help businesses make smarter sourcing and shipping decisions before disruptions occur.
What This Means for Businesses
With ongoing trade disputes, shifting tariffs, and increasing government oversight, businesses can’t afford to be reactive. The key is to understand compliance beyond paperwork, keep up with high-tech export restrictions, and use data-driven tools to plan ahead. As Murphy put it, “Trade teams need to be the department of KNOW, not the department of NO.”