How Technology Is Helping Businesses Navigate Tariffs in 2026

Manufacturers and distributors are still feeling the weight of inflation, workforce shortages, and rising costs. But tariffs and shifting trade policies are the wildcard that can change cost structures overnight.

Trade disruptions are now cited as a top challenge by 33% of manufacturing companies, and changing regulations jumped to 31% from just 8% in 2025. This is a dramatic shift — and a clear sign that tariff readiness is now a necessity, not just a competitive advantage.

The good news? Technology is becoming one of the most effective tools manufacturers can use to forecast risk, improve compliance, and respond quickly when tariff rules shift. Those who succeed in 2026 will be those whose systems provide real‑time visibility, flexible sourcing options, and AI‑powered intelligence.

The Impact of Tariffs Today

Tariffs don’t just increase costs — they create uncertainty. Rates vary by region, product classification, and even specific product inputs. Under new “reciprocal tariff” structures, similar goods sourced from different provinces or regions can carry tariff rates ranging from 10% to 50%.

Without strong data and clear processes, businesses may face:

• Sudden cost spikes on imported goods.
• Inaccurate landed cost forecasting.
• Delays or rework from incorrect origin classification.
• Lost margin due to missed duty drawback opportunities.
• Transfer pricing implementation and compliance issues from tariff expense allocation.

If your business isn’t prepared, tariffs can ripple through everything from working capital to customer pricing.

Three Areas for Action: Where to Focus Your Tariff Strategy

Tariffs and trade policy move fast. To stay ahead and reduce tariff exposure, we recommend focusing on these three critical areas:

Worldwide Tariff Policy Guidance

• Continuously track global policy changes, trade agreements, and tariff updates.
• Maintain precise Harmonized Tariff Schedule (HTS) codes and product classifications.
• Stay proactive with policy optimization to reduce exposure.

Policy Optimization and Risk Mitigation

Operational Mitigation Strategies:

• Realign supply chains geographically to avoid high-tariff zones.
• Increase vertical alignment on a territorial basis to control cost and compliance.
• Utilize Foreign Trade Zones (FTZs) and Temporary Importation under Bond (TIB) programs for duty deferral or reduction.

Contractual and Financial Mitigation Strategies:

• Implement First Sale for Export strategies to optimize duty payments.
• Optimize product classifications to ensure the lowest possible tariffs.
• Refine customs and transfer pricing methods to align with changing tariff realities.

Implementation, Monitoring, and Compliance

• Use financial modeling and forecasting to quantify tariff impacts on margins and cash flow.
• Conduct ongoing tax impact assessments to adjust strategies proactively.
• Leverage broker and trade compliance managed services to ensure adherence and reduce risk.

How Technology Helps Manufacturers Stay Tariff‑Ready

Technology is now manufacturers’ most effective defense against tariff volatility. Forward‑focused organizations increasingly rely on:

• Supply chain analytics to model sourcing changes and vendor risk
• Custom dashboards that layer landed cost, duties, and currency exposure
• ERP systems that unify real-time data across purchasing, logistics, and finance.
• AI and RPA to speed up customs classification and document management

74% of manufacturers plan to increase their investment in AI this year, focusing on priorities such as:

• Quality inspection (37%)
• Inventory optimization (32%)
• Process optimization (31%)

Technology won’t eliminate tariffs, but it can give you the speed, data, and predictive power needed to respond with confidence.

Build a Tariff-Resilient Operation

Volatility isn’t slowing down. If anything, trade shifts are accelerating — making resilience the defining factor for 2026 competitiveness.

Start by:

• Mapping your supply chain to the country and component level to spot tariff risk gaps.
• Incorporating tariff, duty, compliance, and transfer pricing data into your analysis.
• Running “what-if” scenarios that model sourcing shifts and policy updates, including economic impact assessments.
• Building dashboards that unite purchasing, logistics, finance, and tax teams for coordinated decision-making.

Focus particularly on high-risk areas for tariff exposure:

• Jurisdictions subject to high “reciprocal” tariffs
• Electronics and components
• Construction materials (e.g., steel, aluminum)
• Chemicals and manufacturing inputs
• Food imports and perishables
• Consumer goods with complex origin structures

Tariffs Are Here — Are You Ready?

Tariffs may be unpredictable, but your response doesn’t have to be. With the right combination of technology, AI‑driven insights, and proactive planning, you can spot risks early, adapt quickly, and protect your margins.

Now’s the time to build the agility your supply chain needs for whatever comes next. Our manufacturing, tax, and technology advisors can help you get there.

Contact Eide Bailly Manufacturing Advisors | Access the 2026 Manufacturing Outlook Report