“Tariffs are a negative hit. The question is, what are the potential positive opportunities for procurement that could be unlocked in another part of the world?”
President Trump announced a new round of US tariffs on 2nd April as his so-called ‘Liberation Day’. The reporting around this has focused on the negative impacts: From inflation, to economic slowdowns, to a full trade war.
Yet, despite the prospect of inflation and supply disruptions, there are potential positive outcomes. In an APAC CPO Connect call, one CPO from the food and beverage sector was championing his team to seek out those opportunities.
“The piece that I would love our team to speak more about is not only about how to mitigate risk, but also how to convert the risk into an opportunity somewhere else,” the member noted.
In reflecting on past economic crises, he observed that many affected suppliers would potentially create a supply surplus, as their customers struggled.
“We can use that idling capacity with those suppliers that are still hungry to keep their manufacturing sites up and running at full capacity.
Another manufacturing member noted a similar experience following Trump’s announcements.
“We’ve had two suppliers who manufacture in Australia. 20% of their output was exported to the US. They came to us and said, ‘we’d like to supply you more, can we do a deal?’ There are some silver linings.”
“US companies are really struggling, and they are recalculating what the impact will be,” noted the F&B CPO. “But for all the global players, tariffs are a negative hit. The question is, what are the potential positive opportunities for procurement that could be unlocked in another part of the world?”
The bottom line: The economic reporting on Trump’s recent round of tariffs is unremittingly pessimistic. The impacts on the supply chain have been similarly focused on the negative impact. But, as leaders, showing that times of crisis are also opportunities is critical. As the above example shows, for those who are prepared to investigate more deeply, there are opportunities for more entrepreneurial buyers to uncover.
