6 days ago
Ways Companies Can Navigate Trump's Constantly Shifting Tariff Policies
President Donald Trump displays a signed executive order imposing tariffs on imported goods during a ... More 'Make America Wealthy Again' trade announcement event in the Rose Garden at the White House on April 2, 2025 in Washington, DC. Touting the event as 'Liberation Day', Trump announced sweeping new tariffs targeting goods imported to the U.S. on countries including China, Japan and India. (Photo by)
President Donald Trump's on-again/off-again tariff policies and pronouncements have created an economic roller coaster for business executives, making it challenging for them to know how to respond, and creating concerns for what may lie ahead.
Many business leaders likely breathed sighs of relief when a federal international trade court ruled Thursday that most of the tariffs were illegal—until another court reinstated the tariffs the next day, pending an appeal of the decision by the Trump administration.
The ruling by the trade court 'has significantly undermined President Trump's tariff strategy, casting doubt on the legitimacy of his actions and weakening his negotiating position with trade partners. However, businesses have also suffered collateral damage. Uncertainty remains high, hindering their managers' abilities to plan effectively. In effect, the verdict has added one more piece to the puzzle and one more variable to consider in planning,' Usha Haley, the Barton Distinguished Chair in International Business at Wichita State University, explained in an email interview with me.
In an earlier story, I shared recommendations on the steps business leaders could take to help mitigate the impact of Trump's first round of tariffs, which were announced on April 2. Now, in the aftermath of the dozens of times he had changed his policies, it makes sense for business leaders to consider taking a reality check concerning the effectiveness of their response to the tariffs—and what they should do differently going forward.
The uncertainty has forced many companies back into crisis mode until the dust settles. 'Companies crave predictability. Right now, they're stuck in no man's land—unsure whether to pass costs on to consumers, hold inventory, renegotiate contracts, or pivot to alternative suppliers. This type of limbo makes it nearly impossible to forecast effectively. For public companies, that means revised earnings guidance. For smaller ones, it means cash flow strain and stalled investment,' David Warwick, a supply chain expert and an executive vice president at OverHaul, noted in an email message to me.
'As a luxury interior design firm sourcing furniture globally, we've felt the impact of tariff uncertainty. Flexibility is key, along with diverse vendor relationships, proactive planning, and clear communication help us maintain momentum even as conditions shift,' Fabian Rivas, CEO of Enliven Interiors, an interior architecture and design studio, observed in an email message to me.
A best practice for managing a crisis is to be nimble and ready to adjust and respond to changing circumstances. 'The unpredictable back-and-forth of President Trump's tariffs has highlighted the importance of having flexible, well-prepared supply chains. Companies should look at spreading their risk by sourcing from a wider range of countries, holding extra stock where it makes sense, and having contracts in place that allow for quick changes when needed. It's also essential to make sure internal teams are kept up to date and ready to respond when new rules come into force with little notice." Jeremy Solomons, CEO of UK-based Export Management Services, told me in an email interview.
Despite the latest changing and shifting tariff-related circumstances, there are some basic priorities that business leaders should keep in mind. In a dynamic and unpredictable environment such as this, 'you must devote time to maintaining relationships with your suppliers, even as you might limit or pause your purchases from them. They might be unhappy in the moment, but they will appreciate the effort and will go out of their way to find ways of working with you as circumstances evolve,' Moshe Cohen, a senior lecturer at Boston University's Questrom School of Business, advised in an email message to me.
Another priority for companies could be to be preparing and updating worst-case or next-case scenarios in anticipation of a decision by the appeals court, and to be ready for the impact of that decision.'In the logistics space, we're highly sensitive to this volatility as companies struggle to navigate where tariffs will ultimately land, which directly impacts their production planning, supply chain decisions, and capital investments. This uncertainty creates a downstream effect where our clients are strategically waiting and running multiple planning scenarios rather than making firm commitments on spending and inventory orders,' Corey Dong, CEO of Enru Logistics, advised in an email message to me.
And don't forget to keep customers informed about how the next turn in the tariff roller coaster ride will impact them,'Companies need to be constantly proactive and public about how they are absorbing the impacts of the tariff volatility, to mitigate or eliminate disruptions,' Judi Durand, a crisis communications specialist at Judi Durand Consulting, told me via email. Those steps include reassuring clients on a daily basis, communicating with stakeholders about the impact of changes to Trump's tariff policies, and telling customers how those changes will impact them, she said.
It's not unusual for the impact of a crisis to weigh heavily on business executives, and to dampen their outlook and spirit. That's all the more reason to maintain a healthy and positive attitude, no matter what happens next. 'It's important that you remain opportunistic and lock in buying opportunities as they arise. An unstable buying environment creates short-term opportunities, as suppliers look to shed inventory, or as international agreements temporarily lower tariffs costs in various markets. Above all, you should stay positive and avoid panic-buying, balancing opportunistic deals with a long-term strategy,' Cohen at Boston University concluded.
Finally, corporate executives should take advantage of the current lull to review and update their crisis management plans to ensure they reflect current realities in the marketplace. Then be prepared to adjust the plans as needed when the appeals court issues its ruling about the future of Trump's tariffs.
