Uncertainty shouldn’t lead to inaction.

Contributor: Vikram Nayak 

No-regret moves to build resilient supply chains now

In brief

• Navigating tariff tumult requires organizations to think more strategically about supply chains and procurement.
• Building a target vision for what you hope to achieve and taking key steps now can make your supply chain more resilient during the trade war and in into the future.

The market is experiencing a fundamental, structural shift in how global trade works. The ripple effects will likely extend well beyond the confines of a single geopolitical cycle. In this environment, Canadian businesses must take a longer-term view when revising procurement and supply chain strategies. Small changes can add up to big results. Targeting key areas and employing a host of no-regret moves today can help organizations survive this volatility and emerge better prepared for whatever comes next. 

With 77% of Canadian exports typically going to the United States, the evolving trade situation south of the border is already having an impact on businesses from coast to coast to coast. Canada is also the largest import trading partner for 23 different US states.¹  Uncertainty abounds. What’s clear? As 2025 forges ahead, what initially seemed like a short-term challenge has morphed into a much farther-reaching change in how countries around the world will trade with the United States going forward. 

As this trade dispute deepens and its impacts spread, it’s becoming increasingly important for organizations to develop strategies to address what could be lasting — if not permanent — trade dynamics. At EY, we recommend sketching a target vision and focusing on a suite of strategic, effective moves that can help now and bolster supply chain and procurement in meaningful and sustainable ways. 

Where should you begin? 

1. Build data-backed supply chain visibility

Knowledge fosters resilience. Now is the time to dig into the operational data and pull a clear, compelling view of the supply chain as well as any blind spots or inefficiencies. This is vital to building evidence-based action plans and carrying out scenario planning. It also enables a better understanding of what’s in your control, what’s not and how you can take immediate action. In addition, data quality and integrity is foundational to enabling increasingly relevant generative AI capabilities in the supply chain. 

2.Diversify to gain competitive advantage

Diversification is a huge success factor. Think beyond new markets or customer segments and consider a broader range of suppliers. Maybe that means broadening the lens from regional to national or international networks. Consider who you’re currently not working with. Explore previously untapped opportunities. Look farther afield to reduce risk and capitalize on possibilities. 

While supply chain has a key role in developing mitigation measures, don’t forget to engage with advisors who can help you optimize trade flows and transfer pricing to reduce the impact of tariffs. 

We can help you through our proprietary Global Trade Analyzer and EY BRETA platforms to evaluate scenarios that can help optimize trade networks. 

3. Ask for help

The current environment is generating a strong sense of Canadian nationalism and “buy local” sentiment. There’s a real potential for organizations to reach across the ecosystem and work together to overcome trade troubles now. If you have a business case or idea, reach out to government bodies and agencies focused on supporting the business community through this turbulent period. Lobby for changes that can eliminate trade barriers or red tape you see as holding progress back. Collaborate with industry groups to share information and ideas. Work together with your suppliers to codesign mutually beneficial mitigation measures. You don’t have to do it alone. 

4. Prioritize people and culture

Lead with a people-first mentality as you move through these steps. Building resilient supply chains might necessitate upskilling or training so that supply chain teams can act as catalyst of change within the organization and enable cross-functional collaboration to achieve broader objectives. 

Let’s explore how we can help you

We’ve brought together cross-functional leaders to help companies navigate the tariff-driven uncertainty. Please reach out to a member of our team to start a conversation today:

Siddharth Sharma, Partner, Supply Chain & Operations, EY Canada

Sylvain Golsse, Partner, Global Trade, EY Canada