{"id":30768,"date":"2025-08-29T13:03:12","date_gmt":"2025-08-29T13:03:12","guid":{"rendered":"https:\/\/www.europesays.com\/ie\/30768\/"},"modified":"2025-08-29T13:03:12","modified_gmt":"2025-08-29T13:03:12","slug":"theres-an-upside-to-trump-tariff-disruptions-that","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ie\/30768\/","title":{"rendered":"There&#8217;s an upside to Trump tariff disruptions that\u2026"},"content":{"rendered":"<p>Among the top concerns regarding <a href=\"https:\/\/fortune.com\/2025\/08\/26\/trump-tariffs-us-economic-outlook-growth-inflation-debt\/\" target=\"_blank\" rel=\"noopener nofollow\">President Donald Trump\u2019s litany of tariffs<\/a> are the effects on the supply chain. The onset of tariffs forced businesses to quickly decide whether to pass on the cost to customers or eat it themselves. Some businesses have even decided to up and <a href=\"https:\/\/fortune.com\/2025\/06\/27\/bank-of-america-tariffs-reshoring-boom-double-edged-sword-economy\/\" target=\"_blank\" rel=\"noopener nofollow\">move manufacturing facilities<\/a> to the U.S. to circumvent at least some of the blow.<\/p>\n<p>From an outsider\u2019s perspective, this feels like a one-two punch for consumer goods companies, manufacturers, and supply chain practitioners\u2014especially since many had only recently recovered from the massive disruptions caused by the COVID-19 pandemic.<\/p>\n<p>But one supply chain expert\u2014and a self-described optimist\u2014told Fortune he sees at least one upside to tariffs: innovation. While companies are reckoning with new costs and disruptions, it can actually be a good time to ideate ways to use better and less costly materials. And this could end up being a good thing for companies\u2019 bottom lines.\u00a0<\/p>\n<p>\u201cWhen things change, that\u2019s not a bad thing sometimes,\u201d said <a href=\"https:\/\/kerimkfuri.com\/\" target=\"_blank\" rel=\"noopener nofollow\">Kerim Kfuri<\/a>, CEO of supply chain and logistics company <a href=\"https:\/\/theatlasnetwork.com\/\" target=\"_blank\" rel=\"noopener nofollow\">The Atlas Network<\/a>, which works with 2,000 suppliers in more than 30 countries. \u201cOpportunities through chaos is an amazing outcome that happens when things aren\u2019t going as planned.\u201d The Atlas Network is also the verified supplier for <a href=\"https:\/\/www.alibaba.com\/\" target=\"_blank\" rel=\"noopener nofollow\">Alibaba<\/a>.<\/p>\n<p>Kfuri, who is also Shark Tank star Daymond John\u2019s <a href=\"https:\/\/kerimkfuri.com\/last_news\/daymond-john-joins-with-supply-chain-expert-kerim-kfuri-to-tackle-industry-challenges\/\" target=\"_blank\" rel=\"noopener nofollow\">go-to supply chain expert,<\/a> said his company\u2019s job is to put people at ease and navigate businesses with as little disruption as possible. This could look like a company deciding to use a new material to make a product or its packaging because the material wasn\u2019t available anymore or was too expensive now due to tariffs.\u00a0<\/p>\n<p>\u201cYou wouldn\u2019t have known that, or you wouldn\u2019t have done that, unless you had that scenario,\u201d Kfuri told Fortune.<\/p>\n<p>One example Kfuri referenced was when one of his clients during the pandemic switched the materials it was using out of necessity. The paint supplier was o having trouble properly transporting its goods without leakage. But by switching to a different packaging material, the company ended up saving costs and grew their market \u201csubstantially\u201d by using more sustainable materials. That way, the company was able to tout the sustainability side of their business\u2014something that before they \u201cweren\u2019t even considering or thinking about,\u201d Kfuri said.\u00a0<\/p>\n<p>And a tariff-related example Kfuri gave is how chipmaking companies are exploring other materials options in reaction to the current <a href=\"https:\/\/fortune.com\/2025\/07\/10\/trump-copper-tariff-golden-age-scrap-metal\/\" target=\"_blank\" rel=\"noopener nofollow\">tax on copper<\/a>. In that case, companies can start looking into alternative conductive materials or other ways to produce the product.\u00a0<\/p>\n<p>\u201cThere\u2019s too many scenarios where it\u2019s innovation and it\u2019s cost engineering or redevelopment or redesign of products in the face of challenge, whether it\u2019s a pandemic or tariff-related scenario where costs are not able to be absorbed or deferred or passed along,\u201d he said.\u00a0<\/p>\n<p>Other ways companies are actually combatting tariffs<\/p>\n<p>While there might\u2019ve been a lot of noise about companies reshoring or moving their supply chains entirely, that\u2019s not the only option businesses have to deal with tariffs.<\/p>\n<p>Kfuri said there\u2019s effectively five different options companies have in the face of tariffs:<\/p>\n<ul>\n<li>\n<strong>Absorption: <\/strong>This is when someone in the supply chain (the supplier, importer, company, or distributor) takes on some or all of the cost of the tariff instead of passing it on to the consumer.<\/li>\n<li>\n<strong>Deferral: <\/strong>This option involves delaying when and how tariffs are incurred by strategically timing shipments or using free-trade zones.<\/li>\n<li>\n<strong>Terms and conditions: <\/strong>Businesses can optimize contract terms and payment conditions with suppliers to offset tariff effects by doing things like negotiating longer payment windows to help cash flow and dissipate the tariff impact.<\/li>\n<li>\n<strong>Price and cost engineering: <\/strong>This is the option Kfuri was referring to in connection with innovation. It\u2019s when companies engineer products or processes to reduce costs.<\/li>\n<li>\n<strong>Alternative supply chains: <\/strong>This is when companies shift supply chains by switching suppliers or manufacturing locations altogether to avoid tariffs.\u00a0<\/li>\n<\/ul>\n<p>Kfuri said the alternative supply chain option is a last resort.<\/p>\n<p>\u201cYou don\u2019t want to try to have a scenario where you essentially try to save $1 and cause yourself $4 in headaches because you moved to somewhere where materials access is harder, the output isn\u2019t what you need it to be, the resources aren\u2019t trained, [and] the technology isn\u2019t good,\u201d Kfuri said. \u201cTherefore that widget you tried to save money [on] by moving from \u2018A\u2019 to \u2018B\u2019 ends up eventually costing you a lot more in challenges, defects, disruptions, and everything else.\u201d<\/p>\n<p>\u201cI have heard so many nightmare stories of clients just [saying], \u2018Alright. We\u2019re up and moving to \u2018<a href=\"https:\/\/fortune.com\/company\/twitter\/\" target=\"_blank\" rel=\"noopener nofollow\">X<\/a>,\u2019 and they go and they do that, and they spend all this time and money and infrastructure, and it ends up being a nightmare,\u201d he continued. \u201cIt would have been better for them to stay where they were and work through the short-term pain to maintain the long-term supply chain process.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"Among the top concerns regarding President Donald Trump\u2019s litany of tariffs are the effects on the supply chain.&hellip;\n","protected":false},"author":2,"featured_media":30769,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[174],"tags":[9,79,1063,179,18,1831,19,1826,17,5,1828,1827,1829,1830,66],"class_list":{"0":"post-30768","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-breaking-news","9":"tag-business","10":"tag-daily-news","11":"tag-economy","12":"tag-eire","13":"tag-global-news","14":"tag-ie","15":"tag-inkl","16":"tag-ireland","17":"tag-news","18":"tag-news-app","19":"tag-news-headlines","20":"tag-news-today","21":"tag-today-news","22":"tag-world-news"},"share_on_mastodon":{"url":"","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/30768","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/comments?post=30768"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/30768\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media\/30769"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media?parent=30768"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/categories?post=30768"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/tags?post=30768"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}