The automotive industry is facing significant challenges due to the tariffs agenda implemented by President Donald Trump’s administration in the US. This shift marks the end of the era of easy global free trade and ushers in a more multipolar world, according to Peter Swartz, the chief science officer of Altana, a supply chain insights company.
Swartz describes the current situation as a moment of intense deglobalisation, which has been in the making for over a decade. Geopolitical tensions, such as those between the US and China, are contributing to this shift, along with increased supply chain regulations in Europe and a general reordering of the global trade system.
Altana, with its extensive value chain management platform, was founded in 2018 with the expectation that globalisation would not last. Swartz emphasizes that the previous era of globalisation had its drawbacks, including forced labor, environmental impacts, and inequity. The future, he believes, will be characterized by a more fragmented and multipolar world, with increased complexity and regulation.
GlobalData reports support this outlook, stating that easy, frictionless supply chains are a thing of the past. The Covid-19 pandemic and ongoing disruptions have necessitated a regionalization of supply chains and strategic adjustments to navigate the changing landscape.
Abe Eshkenazi, CEO of the Association for Supply Chain Management, highlights the importance of visibility into supply chains, particularly beyond tier one suppliers. The lack of resilience and sustainability in supply chains has been exposed, prompting companies to reevaluate their practices.
Altana’s application of artificial intelligence (AI) to supply chain data has led to the development of a Tariff Scenario Planner, aimed at helping businesses quantify the financial impact of tariffs and find alternative supply sources. The platform facilitates a process of understanding, focusing, and taking action to adapt to supply chain disruptions.
AI is playing a crucial role in managing complex supply chains, enabling companies to understand trade flows at a global level and identify specific facilities trading. Swartz emphasizes the ability of AI to handle complexity at scale and help businesses thrive in the current era of disruption.
As companies navigate the shifting tariff landscape, real-time data and market-leading analysis are essential. By leveraging AI and advanced supply chain management tools, businesses can adapt to the changing global trade environment and emerge stronger in a multipolar world.
