When tariffs shift without warning, companies can't commit to long-term supply chains. One client considered moving production from Mexico to Bangladesh, but the real strategy now is spreading sourcing across multiple countries to hedge against sudden policy changes.
With all these tariff changes, is it still possible to make any long-term supply chain decisions?
Well, as I said, it's very difficult to be honest because no one really knows what's next. And then so I have a client that they were actually asking me like they have production, they have a sourcing office in Mexico. And then of course that Mexico production is mainly for US, you know, market. And then because of the upcoming tariffs, so they were actually planning to pull their sourcing volume from Mexico to, let's say, Bangladesh, from Southeast Asia. And of course, no one would know that maybe the next day that the IEPA tariff will go away, and then maybe they don't have to move, you know, the production. So to be honest, I think it's really difficult to make a long-term supply chain decision. And that's one more like people do like more diversified decision. It's not like they focus on one country because if there's any change, so you have the flexibility.
