Donald Trump’s election victory is already influencing the global business landscape, particularly in supply chain management. With the possibility of steep tariffs on Chinese imports and other trade restrictions looming, many US companies are reevaluating their sourcing and production strategies to mitigate potential risks.
Some businesses are taking a wait-and-see approach, holding off on major changes until Trump’s policies become clearer. However, others are acting now, spurred by the memories of his first presidency. During that time, trade tensions with China prompted many firms to diversify their supply chains, shifting production to other countries or even back to the United States.
Healthcare supplier Premier Inc. has proactively moved production of essential items, like masks and gowns, closer to the US to reduce reliance on Southeast Asian manufacturers. CEO Michael Alkire noted that Premier’s partners are increasingly asking for sourcing options that are less vulnerable to tariffs and geopolitical risks.
Similarly, Fortune Brands, the maker of Moen faucets and Yale locks, has spent years developing alternative suppliers to remain agile in the face of trade uncertainties. CEO Nick Fink stated that while maintaining secondary suppliers can increase costs, the flexibility they provide is critical for adapting to unexpected tariff changes.
Consumer goods companies are also responding. Yeti, the outdoor lifestyle brand, has expanded production beyond China, opening a second facility and planning a third. By the end of next year, half of Yeti’s drinkware production will occur outside of China. Clarus, the parent company of Black Diamond, is relocating manufacturing for headlamps and shoes to Vietnam and other countries. The company is also considering stockpiling inventory to maintain stable pricing if tariffs spike.
Electric vehicle manufacturer Rivian has taken a different approach by strategically selecting suppliers unlikely to be impacted by trade restrictions. CEO Robert Scaringe emphasized that long-term contracts and diversified sourcing are key to minimizing exposure to tariff risks. Rivian is also monitoring potential impacts on raw materials, such as steel and lithium, which could face cost increases under new trade policies.
Trump’s proposed trade measures, including tariffs as high as 100%, have added uncertainty to the business environment. Companies are responding by enhancing their flexibility, diversifying supply chains, and securing alternative production sites. While it remains unclear how these policies will unfold, the anticipation alone is driving significant changes in how businesses approach their operations.
For many firms, these adjustments are not just about avoiding immediate risks—they reflect a broader shift toward supply chain resilience in an increasingly unpredictable global trade landscape. Whether Trump’s policies reshape international trade or fade into political rhetoric, US companies are preparing for a future where agility and adaptability are essential.
