President Donald Trump recently announced a 90-day pause on what his administration called “reciprocal” tariffs imposed on imports from nearly 60 countries and the European Union. This decision was positioned as a strategic economic manoeuvre aimed at recalibrating international trade relations and giving U.S. companies a temporary reprieve to adjust their sourcing and pricing strategies.
In a move that has sparked intense global scrutiny, the administration simultaneously raised tariffs on Chinese imports to a staggering 125%. This dramatic escalation has triggered significant concern across international markets. China, as a central player in global manufacturing and trade, plays a critical role in countless supply chains, and such a steep tariff hike introduces a level of unpredictability not seen since the early days of the COVID-19 pandemic.
As these new trade dynamics take shape, Asia’s interconnected supply chains—already stretched thin by geopolitical tensions and economic uncertainty—are now facing a fresh wave of volatility. This moment is being recognised as the first major global supply chain crisis since the pandemic, pushing companies to urgently reassess their operational strategies.
Yet, unlike during the COVID-19 era, when many companies were caught off guard, today’s businesses are equipped with more advanced tools to anticipate and respond to disruptions. Chief among these tools is artificial intelligence (AI), which is now being widely adopted to enhance supply chain resilience and improve decision-making under pressure.
New customer data from Kinaxis, a global leader in supply chain management software, highlights a notable trend: scenario planning activity can surge up to threefold on key policy days. This indicates that top supply chain organisations are leveraging AI to model a wide range of potential risks and outcomes before disruption strikes.
Proprietary data from the Kinaxis platform reveals sharp spikes in scenario modelling that align closely with major geopolitical and economic policy announcements. These simulations enable companies to evaluate hypothetical disruptions, such as sudden tariff increases, demand fluctuations, or supplier failures, and understand their ripple effects across suppliers, regions, timelines, and customer commitments.
This proactive use of technology represents a new era in supply chain management. No longer are companies merely reacting to change; they are actively preparing for it. The ability to simulate and evaluate “what-if” scenarios in real time allows businesses to make faster, smarter, and more strategic decisions, often within minutes of a disruption occurring.
While global instability and trade disruptions are expected to continue, the nature of the response is evolving. Companies are moving from reactive to predictive, using AI not only as a safety net but as a strategic asset that transforms uncertainty into opportunity.
As Asia grapples with the fallout of the latest tariff moves, the contrast between 2020 and 2025 becomes increasingly clear. The pandemic highlighted the fragility of global supply networks, but AI is now enabling companies to build operational foresight, making agility and confidence the new standard for supply chain success.
Cejay is a Content Producer for Supply Chain Channel, Australia's learning ecosystem created to fill the need for information, networking, case studies and empowerment for everyone in the supply chain sector.
