The global trade landscape is being reshaped at a rapid pace, with tariffs emerging as a key tool in geopolitical and economic strategy. From retaliatory duties between major economies to targeted import restrictions linked to national security concerns, tariff policies are shifting faster than many companies can keep up.
For trade compliance teams, staying aligned with evolving tariff news has become not only a regulatory necessity but also a daily operational challenge. Teams need to work quickly to optimize their supply chains in order to avoid costly duties and disruptions.
This is particularly true for companies that rely on suppliers in China. Chinese suppliers are increasingly hesitant to partner with U.S. companies for fear of tariff and market volatility. In addition, U.S. companies may be looking to engineer their tariff exposure to avoid the costliest value chain scenarios. These American companies have to not only identify the magnitude of their exposure but, critically, identify those alternative suppliers that they can turn to in order to minimize that exposure.
To protect margins and reduce risk, businesses need faster, more reliable ways to understand their supply chains and identify alternative sourcing options before tariff changes take effect.
Finding Alternatives to Minimize Tariff Exposure
Today’s companies can respond to uncertainty by identifying alternative suppliers that present less risk or burden when compared to those suppliers located in countries with significant tariffs or other restrictions. Alternative suppliers with open capacity present a key consideration for companies seeking to navigate the rapidly-changing nature of today’s tariff and supply landscape.
With Sayari Graph, compliance, sourcing, and trade teams have the ability to see deeper into supplier networks and map alternative sourcing options. Sayari’s robust corporate and trade data, combined with its automatic risk insights, allow users to conduct this exercise quickly and flexibly in response to the latest developments.
Retail Company Example:
Let’s say you work for a U.S. clothing and retail company that imports polyester materials from a China-based supplier, Xiamen Xinlihuang Co. Ltd. Even though Xiamen Xinlihuang is not flagged in Sayari Graph for other import-control related risks, it presents your company with tariff-related risk based on its location in China.
This scenario planning is important if you determine that the tariff exposure is too burdensome to continue business with Xiamen Xinlihuang. Additionally, Xiamen Xinlihuang could decide to offload U.S. buyers due to its own concerns over canceled orders by American buyers and general market instability.
WIth Sayari Graph’s Advanced Search features, users are able to identify other suppliers that operate in the same industry as Xiamen Xinlihuang, sell and export the same materials, and are located in a more tariff-friendly jurisdiction. This is enabled by the over 7 billion records Sayari’s in Sayari’s database that include detailed information on entities from the corporate registries of over 250 jurisdictions. These registries often require that companies disclose their nature of business allowing users in Graph to search worldwide for suppliers that match their business needs.
In the above example, you could narrow down to companies that sell textiles and exclude companies in China to vet them as alternatives to Xiamen Xinlihuang Co. Ltd. You can get as specific as you need – even as far as narrowing down to suppliers that manufacture polyester fabrics.
Using these techniques, trade teams can respond to increases in tariffs by identifying a list of potentially suitable alternatives that will lower their costs and risk exposure. Graph’s data provides the key insights necessary to ensure suppliers align with your business needs, risk management strategy, and bottom line. To see a walkthrough of this process, sign up now for a personalized demo.
