In this Supply Chain Byte, Lisa Anderson, president of LMA Consulting Group, breaks down how evolving trade dynamics are influencing companies. Whether you’re navigating new tariffs or evaluating the opportunities, this quick Byte will help you prepare for what’s next.  

The U.S. confirmed their first trade deal with the U.K. which is seen as an example for additional deals. Tariff revenues are expected to increase by $6 billion while tariff costs declined from 5.1% to 1.8%. The U.S. expects to gain $5 billion in exports with market access for agricultural and aerospace products. The U.S. decreased tariffs on Rolls Royce cars, and Rolls Royce is investing in U.S. manufacturing for aerospace. If this  type of deal becomes a standard, manufacturing and exports will surge. 

U.S. and China also agreed on a path forward. Thus, they agreed to reduce tariffs by over 100%, and the U.S. expects to gain access into China markets. This would propel the economy forward and stimulate export opportunities. 

What should companies be thinking about for a successful path forward? Start thinking about rolling out a SIOP process to gain a predictive view into your sales forecast and translate that demand into capacity, operational and supply chain plans. Thus, companies can resiliently and profitably pivot with changing circumstances and make the appropriate decisions to stay ahead of customer needs while maximizing the customer experience, profitability and cash flow.  To learn more about how to effectively design and implement SIOP, refer to our book, “SIOP: Creating Predictable Revenue & EBITDA Growth“. 

If you are interested in reading more on this topic:
Your Tariffs Playbook & Path Forward in Supply Chain