Navigating tariff disruptions: How shippers can future-proof their supply chain with Uber Freight

With tariffs in effect as of March 4 for Canada, Mexico, and China, shippers are preparing to navigate cost increases, inventory disruptions, and numerous logistics complexities.   

Uber Freight is working directly with shippers to help them assess and optimize their supply chain operations proactively, so they’re better equipped to meet these challenges head-on. By focusing on network optimization, inventory management, sourcing strategies, and data-driven decision-making, shippers can build a more resilient and cost-effective supply chain. 

Here’s how to stay prepared for tariff disruptions and how Uber Freight can help.

Network optimization: Build flexibility to absorb tariff impacts

A flexible supply chain network is essential for navigating the challenges posed by changing tariffs. When tariffs are introduced or modified, they can significantly impact shipping costs, route efficiency, and even sourcing decisions. Uber Freight experts advise shippers to proactively evaluate their network to minimize cost fluctuations and maintain operational efficiency.

Reassess routes and nodes

Analyze your transportation routes and warehouse locations to identify opportunities for cost savings and increased efficiency. For example, shifting inventory closer to high-demand areas or rerouting shipments to less expensive ports can help offset increased costs from tariffs.

“It’s essential to understand your supply chain beyond your immediate suppliers,” said Russell Zuppo, Vice President of Consulting Services at Uber Freight. “If there are components coming from tariff-affected regions, you need to have visibility into your entire supply chain and be prepared to adjust accordingly.”

Plan for capacity changes

Tariff announcements can trigger sudden spikes in demand as shippers rush to move inventory before cost increases take effect. This was evident when tariffs on goods from Mexico and Canada were announced, leading to a surge in shipment volume and increased demand for warehousing solutions.

Uber Freight is actively working with partners to help shippers find the necessary warehousing capacity to accommodate these fluctuations. By leveraging Uber Freight’s extensive network, shippers can secure optimal warehouse placements and build a more resilient supply chain.

Targeted tariffs: Stay informed

As discussions continue around targeted tariffs on specific products such as steel, aluminum, and auto parts, shippers must remain vigilant and informed.

“The conversation has shifted towards targeted tariffs on specific products,” said Mazen Danaf, Staff Applied Scientist and Economist at Uber Freight. “Shippers who import items that are not manufactured in the U.S., like coffee, are feeling shielded from tariffs, but others—especially those importing steel and aluminum—are more vulnerable.”

Danaf emphasized how important it is for shippers to closely follow updates on targeted tariffs and be prepared for retaliatory tariffs, particularly for goods affected by cross-border trade with Mexico and Canada.

Inventory management: Strategically position stock to avoid disruptions

In a volatile tariff environment, inventory management becomes a critical strategy for maintaining supply chain continuity. Shippers need to balance the risk of overstocking with the cost of potential shortages.

Forward-stocking inventory

When new tariffs are announced, many shippers expedite shipments to get products across borders before the tariffs take effect.

For customers with operations in Mexico, Uber Freight is observing front-loading activity in several key industries. The automotive sector has increased front-loading in recent weeks, given its heavy reliance on Mexico for manufacturing and the impact of steel tariffs on production costs. Food is another major category, especially fresh produce—many fruits and vegetables are grown in Mexico, and for certain crops that aren’t widely produced in the U.S., these tariffs could drive inflationary pressures. Beyond these, shippers in industries like steel, aluminum, household kitchen appliances, pulp and paper products, and air conditioning parts are ramping up production and shipments as tariffs go into effect. Mexico also plays a crucial role in supplying these goods to the U.S.

Many Uber Freight customers are also trying to find warehouse space in either the United States or Canada. “They’re figuring out where they can store product because they don’t have excess capacity,” said Craig Watson, Vice President and Managing Director for Canada at Uber Freight. “They’re trying to understand what kind of pre-stocking is viable, and then analyzing their pricing strategy versus absorption strategy,” Watson said. Uber Freight is helping these customers find continuous improvement initiatives, understand what they can mitigate, and what they can afford to absorb.

Jose Guerrero, Director of U.S. Customs Operations at Uber Freight, also noted that some shippers are considering breaking down the parts of their products into different components when moving through customs. “For example, if a product consists of steel, aluminum, and other components, they’re considering declaring each part separately to only pay duties on the tariff-affected components,” he said. 

Uber Freight advises shippers to consider forward-stocking inventory in strategic locations to minimize exposure to tariff increases. By analyzing historical data and predictive analytics using a tool like Uber Freight’s TMS, shippers can determine optimal inventory levels and minimize costly supply chain disruptions.

Inventory strategies for cost optimization

To effectively navigate tariff changes, shippers should engage in scenario planning that aligns inventory positioning with manufacturing to evaluate different cost implications and develop contingency plans. This includes reviewing and analyzing independent inventory storage, assembly, and manufacturing locations across different scenarios.  

“Having a digital twin or network model on hand allows shippers to run ‘what if’ scenarios,” Zuppo said. “This capability is essential for quickly assessing the impact of new tariffs and adjusting sourcing and inventory strategies accordingly.”

Uber Freight’s logistics consultants provide strategic guidance on cost modeling and network optimization, helping shippers make informed decisions that minimize financial risk.

Adopt flexible sourcing strategies 

Tariff changes can significantly impact sourcing decisions, driving companies to explore alternative suppliers or shift production locations. Uber Freight has observed several strategic shifts among shippers in response to recent tariff announcements:

Diversification of sourcing

Many companies are diversifying their supply chains away from traditional markets affected by tariffs. For instance, some have shifted sourcing from China to other parts of Asia, such as Vietnam, India, and Malaysia. This trend is expected to continue as companies seek to reduce tariff exposure and build more resilient supply chains.

“Shippers should consider diversifying their supply chains to avoid being overly dependent on one region,” said Danaf. “This means looking at alternative suppliers not only abroad but also within the U.S.”

Nearshoring and localized production

In some cases, U.S. companies that have already invested in nearshoring their production to Mexico may be re-assessing the immediacy of those plans as they wait to see what the impact of the tariffs will be, Zuppo said. However, most shippers are not pausing nearshoring plans entirely. “Ultimately, those who have invested in both Mexico and the U.S. may be better positioned to respond to changing trade policies,” said Zuppo.  

Shifting the location of a company’s entire manufacturing operation to avoid tariffs is a process that would take years. It’s not a short-term solution, Guerrero noted. Instead, to help offset the potential cost of tariffs, “some shippers are using foreign trade zones to hold goods and delay duty payments,” said Guerrero. “Others are considering bonded warehouses (a facility where businesses can store imported or exported goods without paying duties until they are released) as a way to manage inventory more flexibly under changing tariff policies.”

Uber Freight’s consulting team helps shippers assess the cost implications of different sourcing strategies and provides guidance on long-term network optimization to minimize tariff exposure.

Data-driven decisions: Leverage advanced analytics

In an environment of constant change, data-driven decision-making is essential for navigating the complexities of tariffs. By leveraging advanced analytics and real-time data, shippers can better understand the financial impact of tariffs on different product lines and make informed decisions about pricing, inventory, and sourcing.

Maria Martinez, Director of International Operations at Uber Freight, emphasizes the importance of utilizing Uber Freight’s network and expertise. She tells customers, “We’re a trusted advisor, we bring extensive expertise and we’re going to help optimize your logistics to get you as efficient as possible.” These optimization strategies can potentially offset additional costs from tariffs. 

Invest in skills development 

Keeping skills sharp is critical during times of uncertainty. Regular training programs can help staff stay up to date on the latest policy changes, industry best practices, and supply chain technologies. When it comes to navigating tariffs, “You need to make sure that you and your partners have the right kind of skill set and an understanding of customs compliance,” said Zuppo. 

Well-informed employees are better equipped to identify and solve problems quickly, keeping operations on track while navigating shifting trade policies.  

Partner with Uber Freight for resilience and agility

Tariff disruptions are an inevitable challenge in the global supply chain. But with proactive planning, strategic sourcing, and data-driven decision-making, shippers can minimize the impact of these disruptions and maintain operational continuity.

Uber Freight is committed to helping shippers navigate the complexities of the current tariff environment with strategic guidance and innovative solutions, including:

• Evaluating inventory levels and securing warehouse space in strategic locations to build a more resilient supply chain.
• Optimizing pricing strategies and identifying cost-saving opportunities through advanced analytics and data-driven insights.
• Navigating changing regulatory environments and cross-border transportation with customs expertise.
• Developing scenario planning and contingency strategies to proactively address tariff changes and minimize disruption.
• Leveraging Uber Freight’s extensive network to explore alternative sourcing, nearshoring, and production strategies.

Contact Uber Freight today to learn how we can help future-proof your supply chain against tariff disruptions.