Trade and customs dynamics in the new tariff era: fresh insights on executive strategies
Uncertainty around tariffs and trade policy continues to shape executive strategies and risk management in the US
As global trade dynamics evolve, executives are navigating a landscape marked by persistent uncertainty around tariffs and trade policy. According to a recent KPMG LLP survey, 45 percent of respondents identified long-term tariff policy and trade stability as one of the top three challenges when considering relocating production and employment to the US.1 This concern is especially pronounced among executives in the oil and gas, chemicals, and industrial manufacturing sectors, where more than half of respondents highlighted these issues.
Trade policy uncertainty remains a significant barrier to reshoring, with 46 percent of respondents citing it as a key obstacle. To address the volatility, 51 percent of executives reported employing real-time monitoring of trade and tariff developments, a strategy that is particularly prevalent in the oil and gas and automotive sectors, where 60 percent of respondents, respectively rely on this approach for risk management.
Uncertain global trade and economic conditions also weigh heavily on organizations. Over half (54 percent) of respondents reported these conditions as a primary challenge in managing tariff-related issues, with life sciences (63 percent) and oil and gas (60 percent) sectors most affected.
In response to these challenges, companies are increasingly turning to technology. Predictive analytics for demand forecasting is the most widely implemented capability, and 35 percent of respondents are automating trade and customs analytics to better manage tariff impacts. Automation is especially common in the oil and gas and chemical sectors, where more than half of respondents are leveraging these tools, compared to just 13 percent in life sciences.
Generative artificial intelligence (GenAI) is emerging as a critical component of trade strategy. Among respondents, 51 percent believe GenAI will be integral to the success of their tariff response and trade strategy, and 80 percent of those in the natural resources sector are already using GenAI for trade compliance and classification.
GenAI adoption for trade compliance
Despite these technological advances, many organizations remain focused on foundational strategies. Over one quarter (27 percent) are prioritizing trade compliance and tax strategy, emphasizing financial and regulatory agility over structural changes. However, only 25 percent of respondents have hired talent with trade and compliance expertise to improve resilience against tariff volatility. In the automotive sector, this figure rises to 47 percent, indicating a sector-specific emphasis on specialized talent.
Real-time intelligence and sector-specific strategies are now essential for building resilience in the new tariff era.
George Zaharatos
Principal, Tax, Trade & Customs, Atlanta, KPMG US
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As the tariff landscape continues to shift, executives are balancing advanced analytics, automation, and targeted hiring to navigate ongoing uncertainty. These survey findings underscore the importance of agility, real-time intelligence, and sector-specific strategies in building resilience for the new tariff era.
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