This month, the Trump administration announced plans for 25% tariffs on imports from Canada and Mexico, 10% on Chinese imports, and an additional 10% tariff on Canadian energy resources, which could disrupt global supply chains, manufacturing, and trade. But could Trump’s tariffs be good for tech? And how will AI and automation affect supply chains […]
This month, the Trump administration announced plans for 25% tariffs on imports from Canada and Mexico, 10% on Chinese imports, and an additional 10% tariff on Canadian energy resources, which could disrupt global supply chains, manufacturing, and trade. But could Trump’s tariffs be good for tech? And how will AI and automation affect supply chains and procurement?
The measure was paused for 30 days, but the threat has shaken up global trade, leading to threats of reciprocal tariffs and discussions over a new world order.
Trump claims the tariffs are in response to illegal immigration and drug trafficking, but the consequences for trade, manufacturing, and technology are far-reaching; businesses are already feeling the economic ripple effects.
TechInformed spoke to leaders in supply chain logistics, manufacturing, and other industries to ascertain how businesses are preparing themselves for how the tariffs might affect them. But, for deeper context, we should start at the beginning.
Why is the Trump administration implementing tariffs on Canada, Mexico, and China?
The Trump administration’s official stance is that these tariffs are a necessary tool to combat illegal immigration and the trafficking of fentanyl into the US, according to the White House.
As is contained in the official White House fact sheet: “The extraordinary threat posed by illegal aliens and drugs, including deadly fentanyl, constitutes a national emergency under the International Emergency Economic Powers Act (IEEPA).”
The administration claims that previous policies have failed to address these concerns effectively and that economic pressure through trade measures will drive compliance from key trading partners by leveraging America’s massive consumer market as a bargaining chip.
Beyond the political motivations, these tariffs are part of a broader ‘Fair and Reciprocal Plan’ aimed at addressing what the administration sees as long-standing trade imbalances.
In another statement from the White House, released this Wednesday (Feb 13), the administration purports that US industries face unfair tariffs abroad while foreign competitors benefit from lower US import duties.
The previous round of tariffs imposed during Trump’s first term led to significant disruptions, particularly in manufacturing, where supply chain constraints and retaliatory tariffs reshaped trade flows.
However, businesses — particularly in manufacturing — are already reporting a chilling effect on trade, reminiscent of the 2018 tariff war.
Jonathan Jackman, regional VP of EMEA at Kinaxis, a supply chain management software company based in Ontario, Canada, explains: “The introduction of tariffs by the incoming US administration will have profound ripple effects on supply chains globally.”
“It is very likely that new tariffs implemented by the US will trigger counter-tariffs, resulting in a more complex international trade environment overall.”
Given the widespread uncertainty, industry experts weigh in on the best strategies to mitigate these disruptions.
What does Big Tech stand to gain or lose under a second Trump presidency?
How are businesses going to adapt to Trump’s tariffs?
The immediate impact of these tariffs is uncertainty. Manufacturers and supply chain leaders must quickly adjust sourcing strategies, manage cost fluctuations, and rethink global trade dependencies.
Jackman continues: “Organisations will have a few medium-term options to respond with: onshoring or nearshoring if available, increasing safety stock, which we know some US manufacturers have already started to do, and prioritising core products.
“However, these are not quick solutions, especially if businesses don’t already have diversified supply chains,” he adds.
Experts suggest that AI, predictive analytics, and supply chain visibility tools will be critical in navigating this disruption.
Alex Saric, smart procurement expert at cloud-based procurement software and Source-to-Pay (S2P) platform Ivalua, explained: “Continued uncertainty around how trade policies and tariffs will be implemented means businesses won’t know how best to optimise supply chains to mitigate their impact until the last minute.”
To stay competitive, businesses could try adopting these key strategies:
1. Onshoring and Nearshoring
There is already a trend toward onshoring (moving production back to the US) and nearshoring (relocating production to closer, more stable regions like Mexico or Canada).
“Given likely tariffs and other protectionist trade policies, I expect to see a transition towards onshoring or nearshoring of more supply chains. Regardless of what policies are actually implemented, organisations should prepare for the possibility of nearshoring or onshoring operations,” added Saric.
Companies that depend on cross-border steel, aluminium, and other raw materials may begin shifting production back to the US to avoid increased costs.
Alex Saric, Smart Procurement Expert, Ivalua
2. Leveraging AI for predictive analytics & trade forecasting
AI and machine learning-driven supply chain forecasting tools can help businesses prepare for various tariff scenarios, enabling them to make data-driven decisions about inventory, supplier diversification, and sourcing.
Madhav Durbha, group VP of CPG & manufacturing at RELEX Solutions (an AI and ML-based supply chain planning platform), explains: “AI-driven forecasting tools analyse a variety of data, including historical trade patterns, economic indicators, and geopolitical events, to help businesses adjust to tariff-driven cost pressures by identifying alternative suppliers or reducing inefficiencies.”
Companies can develop contingency strategies and identify cost-saving opportunities before tariffs take full effect by simulating different tariff levels — 10%, 25%, or higher.
Madhav Durbha, Group Vice President, CPG & Manufacturing, RELEX Solutions
3. Increasing supply chain visibility
The need for real-time data on supply chains has never been greater. To stay agile, companies should monitor stock levels, supplier availability, and trade routes in real-time.
“Supply chain visibility at every level means businesses are better equipped to develop informed contingency plans and make accurate decisions, whatever policy shifts come their way,” says Alex Saric.
In response to growing trade instability, businesses are turning to digital solutions to enhance agility and maintain operational efficiency.
Cloud-based Enterprise Resource Planning (ERP) and Supply Chain Management (SCM) systems are increasingly used to manage these uncertainties. These platforms allow businesses to quickly adjust sourcing strategies, optimise inventory, and reroute shipments in response to tariff hikes.
Stephen Dyke, principal solutions advisory manager at FourKites, emphasises the importance of AI-powered supply chain visibility: “Real-time supply chain data enables businesses to validate alternate suppliers and trade lanes, measure costs, and justify strategic pivots due to tariff pressures.
“AI-driven visibility surfaces network performance insights, helping businesses react faster to disruptions,” says Dyke.
How can companies prepare for the new trade landscape?
Companies are encouraged to embrace strategic scenario planning to prepare for various potential outcomes. AI-powered tools can help firms model supply chain shifts based on evolving tariffs, Identify alternative suppliers and trade routes, and automate inventory management to reduce excess stock costs.
Trish Taylor, a supply chain manager at technology services provider Probrand, stresses that real-time monitoring tools are vital.
“Trump’s tariffs have added extra complexity to an already volatile supply chain. This will clearly drive prices up and may even lead to some constraint on specific product categories that rely on steel and aluminium.”
She explains that companies risk falling behind without automation and digital oversight due to the rapid pace of trade fluctuations.
Could Trump’s tariffs accelerate AI and tech adoption?
With all that being said, while most industries will experience disruptions, it would seem that some sectors — particularly in automation, AI, and supply chain software — may actually benefit from these trade policies.
Matt Woodcock, regional VP of supply chain strategy at Coupa, notes: “Businesses aren’t just worried about the cost of tariffs — they’re grappling with the lack of clarity over when policies will shift and how severe the impact will be.
“This uncertainty is forcing companies to rethink their procurement and supply chain strategies to remain competitive.”
Companies investing in AI-driven procurement tools, digital trade finance solutions, and blockchain-based supply chain transparency platforms are seeing increased demand for their services.
“AI-driven trade forecasting and procurement tools will be critical in helping businesses navigate these challenges. Scenario planning, cross-functional alignment, and a calm, strategic approach will define those who successfully navigate the turbulence and turn uncertainty into opportunity,” adds Woodcock.
While tariffs create an immediate challenge for businesses, they may also accelerate digital transformation in supply chain management. According to experts, companies that invest in automation, AI, and supply chain visibility today will likely emerge stronger, more resilient, and better positioned to adapt to this shifting landscape in the long run.
Read more: How Trump tariffs, AI and Ozempic could shape tech’s future
Are Trump’s tariffs good for tech?
While the tariffs present immediate challenges, they may also serve as a turning point for companies willing to invest in technology-driven resilience strategies.
Trump’s latest tariffs will undoubtedly increase costs and disrupt global supply chains, but they also catalyse digital transformation in trade, logistics, and procurement.
While many industries, including car manufacturers and pharmaceuticals, will struggle with higher costs and increased volatility, tech firms specialising in supply chain management, AI analytics, and automation may see new opportunities emerge as companies seek solutions to navigate the trade war.
Omar Asali, CEO of Ranpak, explains: “Now that tariffs are the new economic reality, one way to counteract increased costs is through automation, robotics, and AI. Historically, offshore manufacturing benefitted from cheaper labour costs, but in this case, so does automation with the added benefits of increased efficiency, throughput, and optimised labour.”
Omar Asali, CEO, Ranpak
He concludes, “While automation does require upfront investments, it would make sense to offer tax incentives for equipment and automation built in the US. This creates the potential to add real momentum to an onshoring story where consumers, employees, and businesses can win.”
Ultimately, whether tariffs are a net positive for tech depends on how quickly businesses adopt digital tools to mitigate their impact — a challenge that will shape global trade for years to come.
Read more: What does Big Tech stand to gain or lose under a second Trump presidency?
