The first two months of 2025 have already thrown up a range of new challenges for the established international trade sector. While the threat of tariffs on imports to the US is likely to remain a major theme throughout the rest of the year, it's far from the only issue firms need to deal with.
Therefore, having the resilience needed to cope with a quickly-changing environment will be a must for any business to be successful. The key to this will be using management software that can alert businesses quickly to any changes that are likely to affect their operations, as well as advanced data analytics tools that can identify any new opportunities or preferential trade arrangements that can be taken advantage of.
Tariffs just the tip of the iceberg
Much has already been made in the last couple of months of the tariff-first approach to both trade and wider foreign policy of president Trump's new US administration. This is creating a hugely unpredictable environment for traders, as there have already been threats of tariffs imposed and then lifted on the likes of Canada and Mexico, while further measures against China and the EU seem certain to follow.
At the same time, trade restrictions such as sanctions and export control are also changing rapidly. These issues are so far particularly affecting sectors such as rare-earth minerals and high-tech semiconductors. Restrictions on the import and export of these goods between the US and China, for example, are likely to evolve quickly as trade tensions between the countries rise. As such, it will be critical for firms to remain up-to-date with any new developments in order to maintain compliance.
Other issues that firms will face include fragile global supply chains that remain vulnerable to a wide range of disruptions, from geopolitical tensions to cybersecurity incidents.
How can firms improve their resilience?
Key factors that firms will need to focus on if they are to manage these issues include adaptability and the ability to quickly diversify their operations in response to new rules. Central to this will be the need to stay fully informed about changes as soon as they occur.
To do this, it pays to have a trusted customs compliance management system that can automatically respond to changing circumstances and give instant alerts. This should be a key part of a wider risk management strategy that is continuously assessing and preparing for any regulatory and geopolitical shifts that could impact trade operations.
Wherever possible, strategies should include plans to establish supply chain redundancies and alternative jurisdictions to reduce dependency on single trade routes or suppliers.
Diversification will be hugely important in an increasingly fragmented trading environment, but it can prove difficult for firms that lack familiarity with the wide variety of customs regimes this will demand. Therefore, global compliance solutions that can integrate with multiple regions from a single, easy-to-use platform will be necessary if firms are to remain resilient and thrive in a constantly-evolving environment.