Navigating Risk as Tariff Uncertainty Continues in 20264 Min Read

In a recent Materials Handling & Logistics article, Charles Clevenger shares his perspective on how organizations need visibility into their tariff stacking, using a more fluid model that maintains multiple forecasts to account for changes down the road. 

Key Highlights

​Supply chain organizations need to shift away from financial and operational models that are based on a single fixed tariff rate in favor of a much more fluid model whereby they maintain multiple forecasts to account for alterations that could take place.

Organizations that are able to centralize their operations will not only have much better visibility into their tariff expectations and liabilities but will be able to insulate themselves much more effectively than those that rely on siloed approaches.

From disruptions in the Strait of Hormuz to broader global economic uncertainty, 2026 has provided the supply chain and logistics categories with no shortage of pain points to navigate. However, perhaps nothing has proven to be a more nagging headache than tariffs. 

To say that the 2026 tariff landscape is anything but incredibly dynamic and complex would be a major understatement. Throughout this first portion of 2026, supply chain stakeholders have found themselves lurching from one tariff related development to the next.

This reality once again reared its head with the expiration of the 10% Section 122 on July 24, tariffs, enacted by the Trump administration following the Supreme Court’s decision to strike down the International Emergency Economic Powers Act (IEEPA) tariffs in February.

As the Section 122 tariffs have elapsed, supply chain organizations now find themselves contending with a new web of tariff regulations, headlined by Section 301 tariffs which have seen tariff rates of up to 12.5% levied on 60 major global trading partners.

This is in addition to a 25% tariff levied against certain Brazilian imports and with a further 50% tariff provisionally set to snap into place against specific Canadian goods on August 19). Steel, copper, aluminum and related derivative products are also still subjected to standing tariffs under Section 232.  Virtually every import of materials and goods into the United States is impacted in some way.

Compounding this is that each action has its own network of product scopes, exclusions and other factors that need to be navigated, creating a highly intricate layered tariff environment.

To remain compliant, it is pivotal that organizations establish a watertight understanding of their tariff exposure while also building an operational infrastructure and strategies that will allow them to be responsive to any tariff movements.

Understand your tariff stacking exposure

One of the most important foundational elements that organizations need to have in place to navigate today’s tariff environment is a clear view of their tariff stacking – when a product is subjected to multiple tariffs at the same time.

While some trade actions include exclusions to avoid overlapping, some duties are put in place to compound on top of existing levies. For example, before its expiration, Section 122 included some exclusions for imports that were already subjected to Section 232 tariffs, but not others.

Moreover, just because two products come from a similar supply chain doesn’t mean that businesses should assume their tariff treatments are the same. For example, two similar component parts from a single supplier could be classified differently.

Therefore, a stacking analysis is pivotal in determining a business’s immediate exposure and broader strategic planning. Once a full view of stacks and exclusions is constructed, stakeholders can then make better decisions regarding customer pricing and sourcing that will allow them to build more stable financial footings.

Read the full article published by Material Handling & Logistics.