As new tariffs take hold under the second Trump administration, supply chain leaders are once again facing disruption. For retailers, the message is clear: reactive supply chains will struggle, but proactive ones can stay ahead.
According to Gartner’s Gerhard Grimm, retailers should align their operations with one of four supply chain profiles—each offering a different strategy for managing tariff risk.
- Design: Retailers focused on innovation can reduce tariff exposure through product design and sourcing changes. That could mean switching to lower-duty materials or sourcing from countries with better trade terms.
- Durability: For companies committed to long-term sustainability, durability means investing in alternative sourcing and regional production. Some are using Foreign-Trade Zones or building partnerships with local farms to reduce their reliance on imports.
- Deferment: Retailers in highly tariff-sensitive sectors may choose to wait and see, holding off on big changes while optimizing costs and renegotiating contracts to share tariff risks.
- Decision: Businesses with complex supply chains need real-time tools. AI-powered forecasting, digital twins, and well-trained teams can help simulate different scenarios and make quick pivots.
Across all four profiles, Grimm suggests several actions retailers can take now:
- Diversify suppliers to avoid bottlenecks.
- Analyze landed costs and duties for optimization opportunities.
- Use AI tools to model the impacts of tariffs in advance.
- Adjust inventory levels to create buffers for key SKUs.
“Retailers that align with one of these strategies and take action now will be better positioned to weather policy shifts,” Grimm says.