Surviving Tariff Volatility: A Guide for Global Trade Leaders

By Simran Sethi, Product Manager, Global Trade Intelligence, Descartes

The global trade environment is facing unprecedented uncertainty. As tariff unpredictability becomes a persistent challenge—driven by geopolitical tension, retaliatory actions, and economic instability—businesses must move from reactive crisis management to strategic resilience. The Descartes Tariff Volatility Survival Guide offers a timely playbook for navigating this “new normal.”

• Tariff Volatility Is the New Normal
  Global trade is marked by persistent tariff unpredictability due to geopolitical tensions and economic shifts. Businesses must treat tariffs as variable costs and prepare for ongoing disruption.
• Risk Mitigation Requires Proactive Strategy
  Leading companies are using tools like Harmonized System (HS) classification, supplier diversification, Foreign Trade Zones (FTZs), and duty recovery to minimize tariff exposure and maintain supply chain flexibility.
• Strong Compliance Frameworks Are Essential
  Centralizing governance, investing in staff training, and leveraging compliance software helps businesses stay aligned with evolving trade regulations and reduce risk.
• Technology Is a Critical Enabler
  Global Trade Intelligence tools, automated classification, and digital twin modeling empower organizations to respond rapidly, make informed decisions, and support growth.
• Return on Investment (ROI) Comes from Resilience and Agility
  Investments in trade compliance and technology yield measurable returns through increased supply chain resilience, revenue growth, and access to new markets.

Since 2018, global trade has been shaken by events like the U.S.-China trade war, the COVID-19 pandemic, and a series of retaliatory tariffs and supply chain disruptions. Now, in 2025, tariffs are not just cost hurdles—they are strategic levers and variables that businesses must learn to manage dynamically.

According to a benchmark survey conducted by Descartes and SAPIO Research involving nearly 1,000 supply chain leaders, 48% of respondents identified tariffs and trade barriers as their top challenge in international trade. Additionally, 62% believe large-scale disruptions will continue to impact global supply chains, making it critical for businesses to adopt a long-term strategy.

To navigate this environment, companies must adopt a combination of structural and dynamic risk mitigation strategies. Descartes outlines several proven tactics, including:

• HS Classification Optimization: Ensures accurate product classification to reduce tariff exposure.
• Supplier Diversification: Avoids dependency on high-risk regions by identifying alternative sourcing options.
• Dynamic Landed Cost Analysis: Helps evaluate total costs, including tariffs, to support better sourcing decisions.
• Denied Party Screening: Prevents partnerships with sanctioned or restricted entities.
• Free Trade Agreement (FTA) Utilization: Leverages free trade agreements to maximize savings and reduce duty liability.
• Foreign Trade Zones: Provides flexibility to control tariff timing and reduce cash flow strain.
• Tariff Engineering: Involves modifying product design or manufacturing origin to qualify for lower duties.
• Duty Recovery: Encourages companies to take advantage of duty drawbacks and post-entry adjustments.

A strong trade compliance framework is essential for responding swiftly to regulatory changes. The guide recommends centralizing compliance governance, investing in continuous staff training, and selectively outsourcing functions like denied party screening or classification to software vendors. Digitization not only boosts efficiency but also reduces risk exposure.

Technology is the linchpin of modern tariff strategy. Descartes emphasizes four key tools in the trade tech stack:

• Global Trade Intelligence: Enables real-time analysis of sourcing markets and demand patterns.
• Automated Classification and Filing: Streamlines documentation and improves accuracy.
• Regulatory Compliance Software: Ensures businesses stay aligned with international trade laws.
• Digital Twin Modeling: Simulates policy changes to predict costs and make data-driven decisions.

Survey results support this focus—74% of respondents said technology is essential or highly important to their growth strategy, and 36% believe trade intelligence will deliver the greatest business value in the next two years.

With trade compliance now viewed as a strategic priority, business leaders must show measurable ROI on investments in trade management tools. Key metrics include enhanced supply chain flexibility, revenue growth, and market expansion—highlighting the role of technology in enabling competitive advantage.

The guide concludes with six critical actions for leaders:

1. Assess current tariff impacts on your operations.
2. Build a supplier and market diversification plan.
3. Conduct denied party screening.
4. Invest in real-time compliance and analytics tools.
5. Participate in policy dialogue through industry groups.
6. Upskill trade compliance teams

Tariff volatility is not a temporary issue—it’s a structural feature of global trade in 2025. Businesses that act decisively, embrace technology, and reinforce their compliance frameworks will not only survive but thrive. Descartes’ guide is an essential resource for companies looking to turn disruption into strategic advantage.

To learn more, download the Tariff Volatility Survival Guide.

Mitigating the impact of volatile import tariffs a continuing challenge for businesses that move goods across borders. Descartes provides solutions that can assist your company in evaluating your shipping costs through harmonized tariff schedule (HTS) code searches and landed cost calculations. Descartes CustomsInfo Reference has an up-to-date database of more than 6 million regulatory sources covering 190+ countries. Its advanced global tariff code lookup and HS and HTS code search capabilities are accessed from a single-screen interface, helping import compliance professionals, attorneys, consultants, and others make significantly better classification decisions more efficiently, optimize duty spend, as well as support classification determinations for audit purposes. We also offer solutions that can help with management of FTAs and FTZs, as well as high quality global trade content that enables businesses to perform trade-related activities more efficiently and accurately through their global trade management system, minimizing the risk of non-compliance and facilitating smooth global trade operations.

If you’d like to know more about how Descartes can help, you can contact us or register for a free trial of our HS/HTS code search solution.