Tariffs Webinar

On April 10, 2024 experts from AlixPartners’ Sourcing and Procurement, Supply Chain, and Growth teams gathered for a webinar to discuss strategies for addressing new U.S. tariffs. The recording is available below, along with some key takeaways. If you’d like to learn more about the discussed topics, or get in touch with our team of experts, please visit our Supply-Chain Management & Operations Consulting Services page.

Key Takeaways:   

The reciprocal tariffs are unprecedented in size and scope; though they are on a 90-day pause, the disruption from the 10% base universal tariff and +145% on China will have an enormous impact. While the “reciprocal tariffs,” after the pause, may vary country to country depending on new trade agreements, the magnitude of the tariffs means that their footprint may grow past the U.S. supply chain and spillover to impact every industry from financial institutions, to hospitality and entertainment. 

Four steps for immediate action:

1. Set up a “tariff war room”: Understand all ways in which you are impacted
2. Liquidity management: Focus on cash preservation
3. “No regret” levers: Optimize existing supply chain
4. Pricing to market situation: Execute effective pricing strategy

AlixPartners has experience advising companies on tackling supply chain tariff issues, both short and long term, including through strategies like FTZ, first sale programs, and manufacturing network optimization, and in navigating pricing strategies during a changing macroeconomic outlook. Overall, companies should use this time to identify a range of scenarios for supply chain diversification to reduce decision time once the situation clarifies. The key to navigating the current tariff environment is planning and preparing for contingencies.