Global supply chains, once efficient and predictable, were disrupted in early 2025 by a wave of tariff wars, revealing the fragility of international networks. Rising costs, shifting sourcing, and disrupted trade routes created inventory pressures, delivery delays, and financial strain, with sectors like electronics, automotive, consumer goods, and agriculture particularly affected. Companies responded by relocating production, adopting digital and automated solutions, and diversifying suppliers to build resilience.
The analysis highlights that adaptive, digitally enabled, and diversified supply-chain strategies are essential to navigate policy-driven shocks while sustaining growth, efficiency, and stability.
Key Highlights:
- U.S. GDP fell 1%; major economies also declined. Global GDP growth slowed to 3%, with a 4.9% drop in trade volumes and 0.58% lower global employment.
- U.S. steel prices rose 18%; copper stockpiling surged. Many firms fully passed tariff-driven cost increases to customers.
- India’s U.S. exports fell to $8B; Brazil saw a 22% YoY export decline, especially in agriculture.
- Traditional sourcing and trade routes are disrupted, causing delays, material shortages, and logistical strain.
About The Author
Ankur Malhotra
Ankur is a research and knowledge leader with 20+ years of experience in business and financial research, serving clients across investment banking, consulting, accounting, and advisory. He has expertise in establishing global knowledge centers, delivering business intelligence solutions, and driving thought leadership. Before joining HBGTM Insights, Ankur worked with Forvis Mazars, Korn Ferry, and was part of the founding team of Acuity Knowledge Partners. He is a CFA charterholder from ICFAI, Hyderabad, and a graduate of Delhi University.
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