Basics

What Are Tariffs And How They Affect your Supply Chain?

Apr 9, 2025

Global Tariff & Supply Chain

What’s a Tariff, Anyway?

A tariff is a tax that governments place on goods imported from other countries.
It’s used for a few reasons:

  • To protect local industries from foreign competition

  • To balance trade deficits

  • Or as a response to political or economic conflicts

For example, if the U.S. adds a 20% tariff on machinery from Germany, American companies buying that machinery now pay 20% more.


Tariffs Sound Simple — But They Shake Up Supply Chains

In today’s global economy, most products aren’t made in just one country. They’re built through global supply chains, where:

  • Raw materials come from one country

  • Parts are assembled in another

  • Final products are shipped somewhere else

When tariffs come into play, they impact every step of this chain.


Why This Matters to You

Even if you're not importing directly, your suppliers might be.
That means:

  • A small policy change in another country can affect your pricing

  • Your operations team may face sudden delays

  • Your customers might notice late deliveries or rising prices

In short: tariffs have a domino effect, and being caught off guard can cost you time, money, and reliability.


TL;DR (for those who skim)

  • Tariffs = import taxes that mess with global supply chains

  • 2025 = major tariff shakeups already happening

  • Businesses need to adapt or get wrecked


Stay Ahead of the Curve

With trade policies shifting quickly in 2025, it’s more important than ever to:

  • Stay informed about tariff changes

  • Understand how they affect your industry

  • Watch for signs of supply chain disruption

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