Collaboration Can Transform Tariff Challenges Into Supply Chain Optimization


By focusing on supply chain optimization and investing in strategic partnerships, foodservice equipment and supplies dealers can reduce the potential impacts of higher tariffs.


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anaging frequent pivots is never easy in the foodservice equipment and supplies


By Bridget McCrea and Tim O’Connor


industry, where distributors and manufacturers have faced more than their fair share of uncertainty and disruption over the last few years. While many have become skilled at responding to unforeseen crises or product shortages, the growing threat of trade wars and rising tariffs introduce entirely new challenges. Though tariffs are not a novel concept, the prospect of goods and materials from traditionally friendly trading partners, such as Canada and Mexico, facing steep duties has some manufacturers, distributors and their customers scrambling to adjust. Since January, the term “tariff whiplash” has been thrown around a lot as the new presidential administration


decides which countries and goods should face higher import costs. Retaliatory tariffs from the European Union and other regions of the world have also emerged, further complicating the situation for U.S. companies. As organizations sort through this situation and assess their global supply chains, many are discovering opportunities in the chaos. One option some manufacturers are considering is reshoring (bringing manufacturing and services back to a company’s home country) or nearshoring (moving business operations or sourcing materials to nearby countries). Reshoring has already been on the rise in the United States over the past 15 years, growing from 10,868 job announcements tied to reshoring in 2010 to 287,299 new jobs in 2023,


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