Mapping Your Supply Chain: A Key Strategy for Navigating Tariff Uncertainty

With trade policy in flux, businesses must take proactive steps to understand their exposure to tariffs and mitigate risk. The additional 25% tariffs on imports from Mexico and Canada, originally set for February 4 but now delayed by a month, underscore just how quickly things can change. Meanwhile, tariffs on goods from China remain a concern, and many businesses aren’t fully prepared for the impact.

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One of the smartest moves right now is to map out your supply chain, not just for the goods you import directly, but also for materials imported by your suppliers. The better you understand your supply chain, the better you can prepare for cost increases, sourcing shifts, and compliance risks.

Start With Your Own Imports

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If your company imports into the US directly, run a report in ACE (Automated Commercial Environment) to identify the country of origin for your materials. From there, use a pivot table to:

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   • Summarize total import value by country

   • Model tariff impacts under different scenarios

    • Pinpoint risk areas where additional duties may apply

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For example, you can quickly calculate the effect of a 10% tariff on goods from China and assess potential risks for Mexico and Canada. Having these insights now will allow you to strategically plan for cost adjustments and sourcing alternatives before new tariffs take effect.

Don't Overlook Supplier Imports

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Even if you don’t import directly, your suppliers do, and their sourcing decisions affect your costs. Now is the time to start asking questions:

    • Where are key materials coming from?

    • What percentage of their imports are from China,Mexico, and Canada?

    • Do they have contingency plans for shifting sourcing?

Take These Two Steps Now

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2. Pareto Out Your Top 80% of Parts
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Focus on the most critical parts sourced from China, Mexico, and Canada. Validate the country of origin, because mistakes could mean you're paying unnecessary tariffs.

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Need help with COO validation? Kendrick Trade specializes in verifying North American origin under USMCA rules. If you're unsure whether a product qualifies as originating, Kendrick’s automated tools can quickly determine eligibility, ensuring compliance and avoiding costly missteps.

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2. ReviewSuppliers
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Take a closer look at the most common suppliers with products from CA, CN, andMX in your supply chain. This will give you better visibility into whichsuppliers are most impacted and help you prioritize risk mitigation efforts.

Why This Matters Now

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Tariff policies can shift overnight, and businesses that wait too long to react will find themselves at a disadvantage. By mapping your supply chain, validating COO, and engaging suppliers now, you can make informed decisions before tariffs disrupt your cost structure.

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Need help navigating USMCA and COO validation? Kendrick Trade’s automated qualification tools simplify the process, giving you the insights you need to stay compliant and competitive.

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Don’t wait for the next tariff hike to hit your bottomline, start your supply chain review today.