Supply chains move closer to home as tariffs reshape trade

US-imposed Tariffs, whether they come into full effect or not, have already shaken up supply chains and economies across the globe. Companies are doing their best to preempt whatever new laws come their way, including looking into nearshoring as a viable option to minimize impact.

We spoke with Adam Basson, Founder and CEO of FlexChain Holdings, a supply chain solutions provider for e-commerce and omnichannel companies, to discuss what options are available to businesses needing to keep on top of supply chain changes in the coming months.

Tariffs impact: "The current tariff turbulence is undoubtedly accelerating nearshoring strategies. Companies are seeking to mitigate risks associated with geopolitical tensions, trade barriers, and shifting global alliances. FlexChain is uniquely positioned to support this shift."

Innovations: FlexChain's approach to nearshoring combines three key innovations. Their proprietary Impact Simulator generates detailed cost-benefit analyses, while a partnered network of vetted sourcing experts handles supplier management across regions. Most notably, their cross-border freight solutions drive significant savings, with Basson reporting "annual freight cost savings of 15-25%" through optimized truckload utilization.

Market evolution: Basson suggests businesses develop a dual-strategy approach to tackle trade uncertainty that combines AI analytics with market expansion. "Using advanced analytics and AI, companies can identify high-risk areas in their supply chains and prioritize supplier diversification or localization," says Basson.

Rather than simply seeking backup suppliers, he advocates for exploring new opportunities with existing partners, creating what he calls "flexible supply chain pathways." The goal extends beyond risk mitigation and helps businesses create needed agility while facing shipping uncertainty.

Long-term changes: If tariffs remain a consistent policy mechanism, Basson anticipates several long-term shifts. He shared the following predictions:

• Localized and regional production models: Supply chains will increasingly favor local production within major consumer markets or within defined regional spheres of influence. This shift reduces exposure to international tariffs and geopolitical disruptions.
• Evolution of freight forwarders into strategic advisors: Given the dual pressures of innovation and market uncertainty, freight forwarders will have to transition from a cost-centric operational role to strategic advisory partners. Their expertise will expand to include managing Foreign Trade Zones (FTZs), duty drawback programs, and product re-engineering strategies, as well as securing capacity in volatile environments—not unlike what we saw during the pandemic.
• Transformations in supply chain financing: While businesses may face higher upfront switching costs and increased per-unit costs due to supplier transitions, these expenses could be offset by reduced lead times and improved working capital efficiency. The net impact will vary, but supply chain financing models will adapt to balance these dynamics effectively.

Looking forward: Basson says these are his best current assessments, but it will come down to seeing how the coming weeks, months, and years play out. No matter what comes of tariffs and any new challenges facing supply chains, Basson adds that "FlexChain remains committed to helping businesses thrive amid these evolving challenges."