The year 2025 has ushered in a defining moment for global procurement. Following a wave
of geopolitical tension, supply chain instability, and economic uncertainty, the
reintroduction of sweeping U.S. tariffs under the second Trump administration has ignited
a fresh wave of disruption across industries. But unlike the trade wars of 2018–2020, the
current tariff regime comes at a time when global supply chains are already strained, and
businesses are grappling with the cumulative aftershocks of the COVID-19 pandemic, raw
material inflation, climate-related shocks, and a rebalancing of global power dynamics.
This confluence of pressure points has forced procurement to evolve—rapidly and
fundamentally.
The latest tariffs, targeting strategic goods such as semiconductors, electric vehicles, green
tech components, and critical minerals, have redefined the cost structures of multinational
businesses. These measures, compounded by retaliatory tariffs from key trade partners,
have pushed landed costs to historic highs across several industries. According to Maersk
reports (2025), the current tariff environment has increased end-to-end freight costs by an
average of 12–18%, with some sectors experiencing spikes exceeding 30%. The Richmond
Federal Reserve (2025) notes that U.S. imports from tariff-targeted regions have dropped
by nearly 9% in Q1 2025 alone.
Procurement teams are now operating in a world where volatility is not an exception—it’s
the rule. The traditional focus on cost-saving through global sourcing has become
untenable. Instead, procurement must now balance cost, risk, resilience, and sustainability
in a fast-evolving global context.
The New Era of Procurement Risk
The Return of Tariffs and the 2025 Disruption
Procurement Is on the Line: How Tariffs Are Exposing Strategy Gaps in 2025