Risk of Potential Tariffs on Wood Products

Tariff Uncertainty Is Here to Stay. Here’s How to Prepare.

March 11, 2025

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Introduction

Global trade has entered a new era of volatility, with tariffs and trade restrictions already proving to be powerful tools of economic policy. Supply chain and procurement leaders must now navigate an increasingly complex regulatory environment, balancing cost efficiency with risk mitigation.

“It’s a very dynamic environment,” says Jason Clark, Exiger’s SVP for Manufacturing and Energy, in the webinar Preparing for Tariffs: Steps to Take Now. “It seems like a very high-stakes game of poker that’s happening here on a geopolitical stage.”

[Access the webinar Preparing for Tariffs: Steps to Take Now]

The webinar, cohosted by Exiger and The Chertoff Group, explores proactive steps that leaders can take to manage tariff volatility and reduce exposure to risks. Here are some takeaways that can help strengthen supply chains against tariff uncertainty.

Gain Full Visibility into Your Supply Chain Exposure

One of the biggest challenges companies face is understanding where tariff risks exist in supply chains — particularly beyond their direct suppliers. Many businesses have clear insight into their Tier 1 suppliers but struggle to see further upstream, where hidden tariff exposure often lies.

For instance, a U.S.-based manufacturer may purchase components from a domestic supplier, believing they’re shielded from tariffs. However, if that supplier sources materials from China or another tariff-affected country, the costs could still be passed down the supply chain. “It’s a big blind spot for a lot of companies that have this hidden vulnerability of tariff risk that exists within their supply chain,” says Clark.

To mitigate this risk, supply chain leaders should:

Map multi-tier supply chains, identifying suppliers at Tier 2, Tier 3, and beyond.
Use AI-driven analytics to gain visibility into supplier dependencies and country-of-origin exposure.
Engage directly with suppliers to verify sourcing practices and understand potential vulnerabilities.

By obtaining a clearer picture of the supply chain structure, companies can make informed decisions about where to adjust sourcing strategies and avoid unexpected tariff-related costs.

“This modeling of different scenarios helps our clients identify what suppliers and categories are going to be most impacted, so that they can quickly prioritize which mitigation activities to stand up.”

Jason Clark

SVP, Manufacturing and Energy, Exiger

Build a More Resilient Supplier Network

Resilience in supply chains starts with diversification. Relying too heavily on suppliers in a single country — especially one subject to high tariffs — creates a significant risk. Some ways to diversify include:

Nearshoring: Shifting some production to neighboring countries that offer lower trade barriers, such as Mexico for U.S. companies.
Reshoring: Bringing key manufacturing processes back to domestic facilities to reduce dependency on foreign suppliers.
Dual Sourcing: Identifying alternative suppliers in different regions to reduce reliance on any single country.

Geoff Kintzer, Senior Director of Geopolitical and Regulatory Risk at The Chertoff Group, says that supply chain design (or redesign) should be an ongoing strategic priority. “Companies really need to reevaluate the design of their supply chains more so than they ever have before. Supply chain planning and supply chain design have been overlooked in recent years, and I think that’s one area that’s going to be critically important.”

He adds that tariffs could present “opportunities to invest and grow in different markets, and even businesses that you’ve historically been divested from could be a focus for future growth.”

Integrate Tariff Scenario Planning into Business Strategy

With the unpredictability of tariffs, companies need to move from a reactive approach to a proactive one by incorporating tariff modeling into their long-term strategic planning.

“You really need to be prepared for a series of eventualities,” says Clark. “Have a set of scenarios that you can model and then have a playbook in place, so that if and when the trade landscape becomes a little bit more finite or a little bit more prescriptive, you can be quick to action.”

Here’s an example of modeling different scenario assumptions in Exiger’s Tariff Intelligence Solution:

“Once you map your multi-tier supply chain,” Clark says, “then Exiger’s platform allows you to model the sourcing and flow of materials and overlay what some tariff assumptions might be. This

Companies that incorporate tariff forecasting into their strategic decision-making will be better equipped to respond quickly and effectively to new trade regulations.

Invest in Technology to Manage Tariff Risk

Managing tariff risk manually is nearly impossible, especially for companies with complex global supply chains. Investing in technology like Exiger’s can help businesses automate risk assessments, track real-time changes in trade policy, and improve supply chain visibility.

The best supply chain technology platforms will provide:

Supply chain mapping with AI to identify multi-tier dependencies.
Automated alerts for tariff changes and geopolitical trade shifts.
Scenario planning tools to analyze the financial impact of different tariff policies.

Exiger’s Tariff Intelligence Solution, part of the 1Exiger platform, can assess tariff impact with a user interface that is configurable and provides insights to keep businesses prepared in case of tariff volatility. The AI solution moves organization from insight to action, offering the tools to illuminate tariff risk in supply chains and integrate it into broader enterprise supply chain risk management and strategic planning processes.

With data-driven insights, companies can move beyond guesswork and take a proactive, strategic approach to mitigating tariff risks. For more insights and examples, watch the full webinar.

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Learn how you can take a proactive, strategic approach to mitigating tariff risks

Exiger’s Tariff Intelligence Solution

The 1Exiger platform can assess tariff impact with a user interface that’s configurable to your needs and provides insights to keep you prepared in case of tariff volatility.