RISK & RESILIENCE
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The tariff effect Clearly, the spectre of tariffs looms large over supply chain-related decisions.
The intersection of higher tariffs and post-pandemic resilience concerns has created what Mary describes as a“ proximity premium” in the Americas.
“ Organisations are increasingly willing to accept higher operational costs within the region in exchange for tariff stability,” she explains.
This willingness reflects a more nuanced understanding of risk.
“ Instead of reacting to individual tariff changes, organisations should consider strategic shoring as a long-term risk management strategy,” Mary advises.
“ This not only mitigates tariff exposure but also leverages government incentives and maintains competitive advantages.” The potential impact of new tariff structures has the potential to be truly transformative, with Mary predicting that broad-based tariff increases could transform regional trade dynamics, making regional sourcing more cost-effective – particularly in sectors like automotive, electronics and textiles.
As geopolitical tensions continue to simmer, the case for proximity grows stronger. Mary emphasises that proximity“ can serve as a strategic shield to manage regulations and tariff uncertainty”.
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