STG Logistics: Why Tariffs are Forcing a Supply Chain Reset

Tariff disruptions in 2025 triggered widespread supply chain changes, with companies accelerating sourcing diversification and redesigning logistics networks, according to new research from STG Logistics.

The supply chain reset and trade volatility

The survey of 500 decision-makers responsible for U.S. import strategy found that 85.6% of beneficial cargo owners (BCOs) and shippers front-loaded shipments ahead of tariff implementation to avoid rising costs and maintain product availability. The findings highlight how organisations are preparing for continued trade volatility in 2026.

• 52.3% of respondents avoided higher tariff duties through front-loading strategies
• 43.7% reported improved product availability during peak seasons
• 42.3% experienced increased storage and holding costs
• 43.7% reported working capital strain due to higher inventory levels

Front-loading brings benefits and costs

To mitigate tariff exposure, many companies moved shipments earlier in the year. While this helped maintain supply continuity, it also introduced financial and operational challenges.

According to the survey, 52.3% of respondents avoided higher tariff duties through front-loading, while 43.7% reported improved product availability during peak seasons. However, 42.3% experienced increased storage costs and 43.7% reported working capital strain due to higher inventory levels. In addition, 26.4% reported downstream “quiet periods” as excess stock worked through the system.

“Tariff volatility forced companies to rethink how they manage inventory, sourcing and transportation,” said Geoff Anderman, Chief Executive Officer, STG Logistics. “What we saw in 2025 was a continued shift from reactive supply chain management to a more strategic focus on flexibility, diversification and data-driven decision-making.”

“Inventory became a key risk-management lever,” Anderman added. “But holding larger volumes of product introduces new costs and financial complexity that companies now need to manage carefully.”

Sourcing diversification accelerates

The research suggests a significant move away from China, with 79% of companies shifting at least some sourcing volume in 2025. Southeast Asia and India emerged as key alternatives, accounting for 23.4%, 21.6% and 24.4% of sourcing shifts respectively.

However, diversification has introduced challenges, including supplier reliability, regulatory compliance and logistics coordination in new markets.

Flexible Contracts and Logistics Adjustments

Trade uncertainty is also reshaping contracting strategies. The survey found that 31.2% of respondents secured more flexible contract terms, while 22.8% delayed agreements and 20.2% increased use of the spot market. Only 9.8% paid higher rates to guarantee capacity.

“These results show that flexibility has become increasingly valuable relative to rate certainty,” said Anderman. “Companies want the ability to adjust quickly as trade policies and shipping markets change.”

Companies are also reconfiguring logistics networks, with most shifting between 26% and 50% of freight to new routes or transport modes. Intermodal strategies, port diversification and expanded use of container freight stations were among the most effective approaches.

Planning for 2026 and beyond

The research also suggests looking ahead, more than 40% of organisations plan to further diversify sourcing, alongside investments in analytics, inventory buffers and supplier contract renegotiations to share tariff risk. More than half of respondents also said they would have diversified earlier if given the right opportunity.

“The biggest lesson from the past year is that resilience requires proactive planning,” said Anderman. “Organisations that combine diversification, data visibility and flexible logistics networks will be best positioned to navigate future disruptions.”