By Adrienne Galeas — Nov 27, 2025

5 MIN READ

Our Quarterly Good Food Bulletin brings together company news, supply chain updates, and climate insights from our partners to help you navigate the evolving food and retail landscape.

Want it every quarter?

Sign up here

---

Tariffs have quickly become the most closely watched issue in the supply chain world. In the United States, recent speculation around upcoming Supreme Court decisions on the legality of the methodology used to impose new import taxes, paired with newly announced U.S. agricultural exemptions, has added fresh uncertainty for local importers, manufacturers, and retailers.

Similar dynamics are unfolding in other major markets, including the EU and parts of Asia, where tariff reviews and trade-policy adjustments are influencing sourcing and production timing in reaction to the US government policy decisions.

Sourcing and Production Strategies Driven by Policy Uncertainty

In recent months, many companies doing business with the USA rushed to front-load production to get ahead of proposed summer tariff increases, while others chose to hold back, wary of over-committing inventory at higher landed costs. US retailers are also trimming holiday orders, anticipating that tariff-driven price increases could soften consumer demand, particularly in the U.S.

In Europe and Asia, some industries’ exposure to U.S.-imposed tariffs and the associated trade-policy uncertainty are also affecting investment confidence across companies and markets.

Container Traffic Reveals Impact on Global Operations

These shifts are now visible in container volumes, which sit noticeably below levels from this time last year. The early-season surge and the current “wait-and-see” approach have created a lull in activity at major ports.

Globally, this uneven demand pattern has contributed to more volatile container flows, causing early equipment buildups in some regions and shortages in others. Carriers have responded with additional blank sailings across Asia–U.S. and Asia–Europe lanes, introducing added unpredictability into scheduling.

Freight Rates Under Pressure, but Not Falling as Fast as Expected

At the same time, the mixed-volume environment is affecting shipping costs. While softer mid-year demand is putting downward pressure on spot rates, especially on U.S.-bound trans-Pacific services, carriers’ capacity management, higher global repositioning costs, and tariff-driven risk premiums are preventing rates from falling as sharply as expected.

In Europe and parts of Asia, ongoing tariff discussions and regulatory shifts are also prompting more cautious contract pricing and earlier-than-normal surcharge announcements.

Looking Ahead: Tariffs as a Permanent Variable

With more policy decisions and trade agreements expected soon (not only in the U.S. but also in Europe and several Asia-Pacific economies) supply chain teams are modeling multiple scenarios and preparing for further volatility.

Tariffs have evolved from episodic disruptions into a permanent variable, demanding agility and close monitoring from every link in the chain.

Companies will need to continue to walk on eggshells and carefully examine each step they take to ensure the smoothest possible sailing through these currently rough waters.

Back to Learn & Discover Back to Market Reports