What (if any) precautionary measures are you taking to protect your organization against the potential of increased tariffs on Chinese products?
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I have direct experience with this one in my past life. Trade wars, like FOREX and tariffs, will always be a risk.
As a business leader, supply chain manager, or finance professional, your pivotal role in safeguarding your organization from the impacts of trade wars and currency risks cannot be overstated.
1. Diversify your supply chain and reduce your reliance on Chinese products. Many other countries in the APAC region offer comparable products at competitive prices, reducing your vulnerability to trade war disruptions.
2. Negotiate - Put in pricing agreements and move to a local for a local solution if your organization has the appetite to manage this.
3. Local for local sourcing - there are many great suppliers worldwide. Still, if you have a manufacturing footprint where you can build for the local economy, it can help boost the local environment and create more jobs. Take into consideration cost, time, volume, etc.
4. Duty Drawbacks or buying from foreign trade-free zones to reduce the impact.
5. Innovate in your product and improve the product value.
These are some things that come to my mind, and there is probably more.
Most organizations are adopting the China Plus One approach. Or, sometimes, relocating facilities to India, Vietnam, or Latin America. If the company has not already addressed this concern, then it is significantly behind the curve and will incur higher risks.