Protecting Your Supply Chain from Tariff Surprises in the New Year

Inflation is a predictable aspect of business, yet supply chains can still face unexpected increases in costs. If you’re in the supply chain business, there are ways to guard yourself against any potential rate or tariff surprises in 2025—and there’s good reason to know exactly what you might pay for individual services or rates compared to 2024. Here’s what you need to know about safeguarding your supply chain and preparing for changes with tariffs in the upcoming year.

Protecting Your Supply Chain from Tariff Surprises in the New Year

Protecting Your Supply Chain From Tariff Surprises

Unexpected tariff changes can impact various operational costs for supply chain businesses. Anything you’ve paid for in 2024 might cost more in 2025. This applies to everything from fuel to currency conversions and extends to supply chain software registration.

How can you avoid being surprised by tariff changes? Start by checking with each business or supplier. Supply chain businesses should also check with third-party logistics partners about rising costs. Verify which prices might increase with the new year.

The best way to safeguard your supply chain from unexpected tariffs is through proactive preparation.

President-Elect Donald Trump and Tariff Changes

The Trump administration is likely to impose increased tariffs on United States imports. He has already announced increased tariffs on imported goods from China, Mexico, and Canada coming into the US.

During the initial Trump administration, tariffs on Chinese goods triggered retaliatory measures against U.S. imports.

A Glance at 2025

The supply chain business faces many changes in 2025, including projected shifts or amendments in current state-wide shipping regulations. Gas prices are known to fluctuate, and 2025 is expected to follow the same pattern. Relevant permit fees and insurance rates might also change in 2025, and be slightly more (or less) compared to prior years.

Software Registration

Supply chain companies should start by looking at their software registration. Multi-national companies have been ridiculed for using outdated or unregistered software before: don’t be the company that skips out on licensed or updated supply chain software!

Update all necessary software before 2025, and check any software license fees for a potential increase.

Updated software guarantees safe, ethical business—and always remember that cybercriminals and fraudsters look for companies too lax to keep their software necessarily updated and paid for.

Supply Chain Partners and Tariffs for 2025

Check all prices with supply chain partners and focus on whether there are any projected tariff changes for 2025. This is a good time to assess your business while keeping track of any possible future fee changes.

It’s natural for many businesses to adjust their costs in the new year. However, it might be your responsibility to check individually.

Impacts of Tariffs on An Economy

Imposed tariffs can have adverse effects on an economy that can include:

• Global Supply chain disruptions
• Reduced economic growth
• Potential for retaliatory tariffs from other countries
• Financial impact on consumers as businesses pass on cost increases
• Disruption of global trade

Gas Prices in Real-Time

Gas prices fluctuate, and gas prices for 2025 are no different. Companies might find that a percentile increase significantly affects their overheads and income. Monitor gas prices in real time using updated resources like GasBuddy.

Rising fuel costs remain a critical concern for supply chain businesses as the new year approaches. Monitor these known fluctuations in real time. These updates can stop higher prices from becoming a sudden surprise.

Licenses and Other Fees

Permit and license fees, such as alcohol-specific permits, may see marginal increases during re-registration in the new year. A company is responsible for ensuring their permits and licenses are updated.

Always check permits and licenses for their expiry dates, sometimes close to the new year or just before this period. Pay your registration fees on time and double-check the cost to avoid any tariff increase shock.

The Exchange Rate

Exchange rates vary daily but should also be checked for the new year. Use an exchange rate monitor like Xe.com for any international business or possible currency conversions.

Some currencies fluctuate drastically as the new year moves around. Even if it doesn’t directly affect the currency you’re working with, it can affect your supply chain partners and their relevant costs.

Updating Your Insurance

Insurance is a crucial part of any successful supply chain company. Check your insurance coverage and fees more readily towards the beginning of 2025. Note any potential claims and fee increases.

The start of the year is an ideal time to review and update your insurance plan or expand your coverage as needed. The beginning of the year is also when insurance providers commonly adjust their rates.

To avoid unexpected tariff-related costs from your insurer, schedule a meeting to review your coverage and rates.

MAI Fulfillment | 3PL Warehouse Chicago, Illinois

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Established in 1981, MAI is a privately-held 3PL company in Chicago specializing in warehousing, fulfillment, and omnichannel contact services. As an experienced outsourced provider, we provide value-added solutions designed to help companies build and maintain relationships with their customers.

The MAI business model offers clients the efficiency and convenience of dealing with a single accountable resource for a wide range of services. MAI areas of specialization include:

• Custom B2B and B2C warehouse/fulfillment solutions
• Omni-channel contact center services
• Technology support

A wide range of service offerings, strategic problem-solving skills, and experience make MAI a valued partner to a broad range of Fortune 500 companies. “Quality” is more than just a word here – it’s the foundation of how we conduct business and an integral part of the processes and metrics we use to deliver value to our clients every day.

Contact MAI today to learn more!