Five Ways To Address Supply Chain Tariff Uncertainty with EDI 

When we published our first blog on navigating new tariffs, we had no idea that more than a month later, so much uncertainty would still remain. Trade policies continue to change weekly—if not daily—and continue to impact global supply chains, driving up costs, introducing new compliance challenges, and forcing businesses to rethink sourcing strategies. 

Recently, the U.S. announced a 25% tariff on imports from the European Union, while additional tariffs on non-USMCA (United States-Mexico-Canada Agreement) goods—25% on steel and aluminum—from Canada and Mexico are expected to impact cross-border trade in North America. Meanwhile, retaliatory tariffs from trading partners and new global compliance requirements further complicate supply chain operations. 

Luckily, technology can offer support. In speaking with our customers across a number of industries, we’ve outlined ways Electronic Data Interchange (EDI) can play a key role in helping businesses maintain visibility, agility, and compliance in this unpredictable environment. EDI refers to the electronic exchange of business documents, thereby automating processes and eliminating manual data entry.  

“Increasing tariffs and disputed trade flows are squeezing margins and threatening growth. Businesses must rapidly adapt and take advantage of new opportunities. EDI enables companies to meet strict customer and vendor mandates, streamline ordering processes and slash costs through automation,” says Mike Berry, SVP of Services at TrueCommerce. “By embracing EDI, businesses can unlock new customer acquisition and dramatically reduce internal expenses in today’s challenging market. ” 

Below are actionable ways supply chain companies can utilize their EDI solution and data to navigate these changes: 

1. Monitor Tariff Impacts on Supply Chains in Real-Time 

Visibility into the financial impact of tariffs is critical for adjusting sourcing strategies, pricing, and order fulfillment. Companies can use their EDI platforms to: 

• Identify profit erosion by automatically calculating updated landed costs. This helps businesses determine whether to pass cost increases downstream or absorb them to stay competitive. 
• Adjust purchase orders (POs) and shift sourcing strategies by identifying alternative suppliers or regions if costs rise significantly in one market or due to product availability—all without manual processing which could reduce their margin. 

2. Leverage EDI for Compliance and Tariff Exemptions 

As governments increase trade restrictions, ensuring compliance with tariff exemption requirements can protect businesses from unnecessary duties or supply chain disruptions. EDI can simplify this process by: 

• Documenting product origins to qualify for duty-free exemptions under trade agreements. In North America, companies importing goods like automobiles, beef, and dairy should ensure their EDI captures accurate product origin data to qualify for USMCA exemptions. 
• Generating customs documentation that complies with new trade laws. European businesses exporting to the U.S. should anticipate heightened scrutiny under WTO-compliant documentation requirements and align EDI systems with these evolving standards. 
• Accelerating cross-border shipments by automatically transmitting compliant shipping documents to customs brokers, reducing the likelihood of delays or unexpected tariffs. 

3. Onboard New Suppliers and Customers Faster with EDI  

As major trading partners introduce retaliatory tariffs in response to new U.S. policies, businesses need to quickly shift to add alternative suppliers as well as handle new customers and volumes efficiently . EDI enables companies to do this by: 

• Onboarding new trading partners or customers quickly to shift sourcing or open new markets. For example, European exporters facing U.S. tariffs may seek to divert goods to Asia or other lower-tariff markets. Additionally, suppliers could acquire new customers as companies seek to source from them—and quickly. EDI streamlines onboarding processes, allowing companies to pivot faster. 

Automating supplier communications to reduce delays or disruption during sourcing shifts. Using EDI-driven supplier portals ensures seamless order adjustments when tariffs make certain suppliers cost-prohibitive. 

4. Adjust Dependencies and Pricing Based on Tariff Impact 

Rising tariffs can significantly impact profitability, causing companies to reduce their dependency on high-tariff markets and adjust real-time pricing strategies. EDI can support reporting and cost management by: 

• Identifying tariff-exposed products through automated product classification and reporting. This is especially critical for U.S. exporters of goods like soybeans, pork, and industrial materials, as retaliatory tariffs from Canada, Mexico, and the EU may impact profitability. 
• Passing tariff-driven cost increases downstream through automated price adjustments. Retailers and distributors can update product pricing in ERP systems when tariff-related cost increases appear. 
• Mitigating profit loss by analyzing EDI data to determine which products, suppliers, or markets face the greatest tariff exposure — allowing businesses to make data-driven decisions about pricing or sourcing. 
• Accelerating PO adjustments by auto-generating updated POs that reflect higher or lower product costs based on tariff fluctuations. 

In North America, businesses relying on Canadian or Mexican imports must be prepared to quickly update pricing to reflect non-USMCA tariff costs. In Europe, exporters may need to model cost scenarios to determine whether to absorb higher U.S. tariffs or shift product allocation to different markets. 

5. Prepare for Continued Trade Uncertainty 

Perhaps the most significant challenge supply chain leaders face is uncertainty — as tariffs, exemptions, and trade agreements are still evolving. Businesses must remain agile and proactively plan for different trade scenarios. EDI supports agility by: 

• Facilitating rapid supplier or market shifts when tariff costs become prohibitive. For example, if U.S. steel prices increase 2-3% due to tariffs, manufacturers may need to pivot to domestic suppliers or secondary markets quickly. 
• Enabling cost modeling and scenario planning by leveraging EDI data for financial forecasting. This is especially critical for businesses exporting goods that may face future retaliatory tariffs. 
• Stress-testing supply chains by simulating how future tariffs could impact key suppliers, products, or trading partners—allowing businesses to build contingency plans in advance. 

Vendor Managed Inventory (VMI) takes agility a step further beyond EDI by allowing suppliers to automatically monitor, replenish, and optimize inventory based on shifting demand or supply chain disruptions—including those caused by tariffs. VMI acts as a natural complement to EDI by managing document flows and ensuring product availability. 

Stay Vigilant! 

Companies operating in North America should especially plan for further tariff adjustments or policy shifts, while European exporters must prepare for broader U.S. trade restrictions or shifting demand patterns. 

However, regardless of location or even industry, EDI can offer clear support for navigating the challenges posed by shifting trade policies. From adding new trading partners to ensuring compliance with evolving trade agreements, EDI provides the visibility, automation, and agility needed to keep operations moving smoothly—but companies must be able to move quickly. If you’re interested in digging into these strategies further, connect with our experts today.