Tariffs are significantly impacting global supply chains and corporate risk assessments, prompting companies to change suppliers, reclassify products, and explore alternative shipping routes to mitigate costs. However, these strategies can inadvertently introduce compliance risks related to export controls and sanctions. A survey by Descartes revealed that half of supply chain leaders view tariffs as their main trade compliance challenge, with 65% noting increased complexity due to trade instability. Companies are advised to integrate compliance measures into tariff planning, ensuring legal, finance, procurement, and logistics teams collaborate effectively. Weak documentation and audit trails can lead to enforcement risks, making it essential
for businesses to maintain thorough records and utilize technology for dynamic risk monitoring. As tariff volatility persists, aligning compliance with sourcing strategies will be crucial for managing risks effectively.
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