The global trade landscape is constantly changing, especially with the Trump administration’s tariff strategy in full swing. U.S. food manufacturers are feeling the pressure to be adaptable and quick in their decision-making to navigate higher costs and supply chain challenges.
During a recent virtual event hosted by Manufacturing Dive and Food Dive, supply chain experts discussed the impact of tariffs on the industry. Amy Haigler, VP of supply chain operations at McCormick & Co., Daniela Vonghia, Chief Supply Chain Officer at Del Monte Foods, and Jeremy Tancredi, partner at West Monroe, shared insights on how manufacturers are dealing with the uncertainty.
With President Trump announcing a 90-day pause on reciprocal tariffs, except for a higher duty on goods from China, the industry is in a state of constant change. Haigler emphasized the importance of agility in supply chain operations, especially with the daily influx of news on tariffs and trade disruptions.
McCormick, a major player in the ingredients industry, has been leveraging its extensive network of suppliers to make sourcing decisions based on availability and adjust products accordingly. Del Monte Foods is also focusing on scenario planning and risk-based decisions to mitigate potential supply chain impacts.
In addition to tariffs, manufacturers are turning to automation and AI software to streamline operations and enhance supply chain visibility. However, Vonghia stressed the importance of quality data that aligns with key performance indicators for successful digital transformations.
As some manufacturers consider expanding in the U.S. to avoid tariffs, Tancredi advises against hasty decisions, urging companies to assess all potential cost-offsetting opportunities. Rising building materials costs, coupled with tariffs, are also affecting warehousing lease costs, making it challenging for companies to grow their supply chains.
Overall, the evolving trade landscape calls for flexibility, adaptability, and strategic decision-making from food manufacturers to navigate the uncertainty and challenges ahead.
