When Tariffs Disrupt Trade: Why Supply Chain Resilience Now Demands Optionality

An interview with Andy Lukoff (USA) and Diederik Ising (Switzerland); initiated by IMW partners Pierina Tánno (Top50, Switzerland) and Pamela Wasley (Cerius Executives, USA)

For many years, global supply chains were built around one dominant principle: efficiency. Companies sourced globally, consolidated volumes and optimised for cost in a world that seemed to reward scale, speed and openness.

That world is changing.

The renewed wave of Trump tariffs has once again exposed how vulnerable international trade can be when political decisions suddenly alter market conditions. For companies operating across borders, the impact goes far beyond customs or compliance. Tariffs affect cost structures, customer demand, sourcing decisions and competitive positioning.

In an IMW interview, supply chain experts Andy Lukoff from the United States and Diederik Ising from Switzerland shared their perspectives on what these disruptions mean and how companies should respond.

Diederik Ising points out that tariffs do not simply make imported goods more expensive. They can also distort market access by strengthening local or regional competitors. A company that was competitive yesterday may suddenly face a very different playing field today.

From the US perspective, Andy Lukoff stresses a point that is often misunderstood: tariffs are paid by the importer and in most cases passed on through the chain to the end customer. That means the impact is felt not only by overseas exporters, but also by American buyers and consumers.

Both experts agree that this is part of a broader shift already underway. In Andy’s words, supply chains have moved from the era of “offshore, outsource and just-in-time” to one defined by “onshore, nearshore, reshore and friendshore.” The pandemic revealed the fragility of overly stretched supply chains. Tariffs have added further urgency.

So what should companies do now?

For Diederik, the answer starts with understanding the type of business involved. In B2B markets, companies should immediately engage with US customers to assess how tariff-driven price increases may affect current and future demand. In B2C markets, the questions are often more structural: can production be localised, can volumes be shifted to other markets, and can profitability still be protected?

His central message is that companies need to design supply chains for optionality. That means building alternatives into sourcing, production, logistics and routes to market. Instead of relying on one setup, businesses should ask themselves where they have flexibility and where they do not.

Andy Lukoff makes a similar point from a practical angle. He advises companies to know not just their suppliers, but their suppliers’ suppliers. Many businesses think they are buying locally, while hidden dependencies deeper in the chain still expose them to global disruption. Without that visibility, quick and informed action becomes almost impossible.

The two experts also highlight that companies must decide how they interpret the current situation. Is this a temporary disruption linked to one political cycle, requiring short-term mitigation? Or is it part of a more structural shift toward a world of stronger economic blocs and more protected markets?

That distinction matters. If tariffs are seen as temporary, companies may focus on tactical responses such as customs engineering, local partnerships or reallocation of capacity. But if this is the beginning of a longer-term reordering of global trade, then more strategic decisions are needed, including where to manufacture, where to invest and how to secure access to key markets.

For some companies, that may even create opportunity.

Diederik argues that businesses should not only think defensively. Companies that move early, while competitors hesitate, may strengthen their market position for years to come. In that sense, supply chain optionality is not just about resilience. It can also become a source of competitive advantage.

Andy adds that speed of decision-making is essential. In uncertain times, waiting too long can be more damaging than acting on incomplete information. Businesses need to define assumptions, make decisions based on the best available data, and adjust as conditions evolve.

The broader conclusion is clear: supply chain management is no longer just an operational discipline. It has become a strategic one. Tariffs may be the immediate trigger, but the real lesson is bigger. In a world where trade conditions can change quickly, resilience, agility and optionality are becoming essential features of business strategy. The companies that will remain competitive are not necessarily those with the leanest supply chains.

They are the ones with the most room to move.