Outsmarting Disruption: Turning Policy Whiplash into Competitive Advantage

The New Normal: Navigating Policy Whiplash

Friday’s headlines: 145% tariffs on China.

Monday’s update: Massive exemptions announced — but wait, now there’s talk of a semiconductor-specific tariff category.

By the time you’re done reading this article, it might have changed again.

“This is no longer week-by-week decision-making,” Hutchinson quipped. “It’s tweet-by-tweet.”

While political maneuvering keeps headlines volatile, businesses are stuck trying to translate mixed messages into operational reality. With backlogs at ports, confusion at Customs, and shifting lists of exemptions, reacting in real time isn’t just hard — it’s risky.

Don’t Panic. Plan.

One of the key takeaways from this episode: Don’t let the noise paralyze your team. Instead, use this moment to reset.

“Use this crisis as your permission slip to rethink your global supply chain — not just for today’s tariffs, but for the next 5–10 years.”
— David Warrick

Hutchinson echoed that sentiment, urging companies to revisit their supplier mix, sourcing partnerships, and future-state network design — especially now that supply chain has a front-row seat in the boardroom.

“There’s massive opportunity in this chaos,” Hutchinson said. “The winners are going to be the ones who think differently and act faster than their competitors.”

Onshoring? Not So Fast.

There’s no shortage of political rhetoric calling for a return of manufacturing to U.S. shores. But as both Warrick and Hutchinson pointed out, moving production isn’t as simple as turning off one factory and turning on another.

Factories don’t operate in isolation — they depend on entire ecosystems of sub-assemblies, raw materials, and specialized labor. And many of those ecosystems exist in China for a reason.

Even if a company wants to reshore, that journey requires capital investment, long-term planning, and — most critically — skilled labor. And in the U.S., that last part is in increasingly short supply.

Instead, companies might find faster wins through nearshoring — building new partnerships with countries like Vietnam, Mexico, and others seeking to step into the China trade void.

From Risk to Resilience

During the pandemic, many companies vowed to become more resilient. But post-crisis, many defaulted back to business as usual. This time, the stakes are higher.

Now’s the time to revisit the resilience playbook:

• Diversify supplier base

• Reevaluate trading partner agreements

• Run scenario planning beyond the next quarter

• Build pricing models that respond dynamically to input costs

• Invest in AI, but don’t forget data governance

“We don’t need perfect predictions,” Hutchinson said. “We need better preparedness.”

The Human Factor

Another theme that emerged in the conversation: Don’t forget your people.

With compliance officers, logistics managers, and in-country sourcing teams trying to keep up with whiplash policy shifts, leadership needs to provide not only direction — but support.

Your frontline teams are overwhelmed. Your execution is only as strong as the people behind it. Prioritizing resource allocation and mental resilience is as much a part of your supply chain strategy as choosing the right supplier.

AI’s Role: Not Magic, but Muscle

Yes, AI will play a growing role in supply chain — especially in areas like supplier selection, risk modeling, and cost analysis. But as Hutchinson pointed out, it’s not magic.

To make AI effective, you need clean, standardized data. You need cross-functional adoption. And you need a strategy that answers the all-important question: So what?

AI is a tool. It’s not a strategy.

Final Thought: Use This Window Wisely

Warrick offered a parting reminder: “If you didn’t take advantage of the last 90 days to plan ahead, use the next 90 to act.”

This isn’t just about reacting to the latest tariff. It’s about building a supply chain that’s smarter, faster, and more resilient than it was before.

Whether it’s embracing new trading partners, deploying AI, or finally fixing your fragmented data, this is your window to lead.