The 2025 Tariff Increases: Procurement Strategies to Minimize Cost Impact

In 2025, businesses across the U.S. are navigating a complex and fast-changing global trade environment. Recent tariff increases on purchases imported from certain trading partners are putting new pressures on sourcing strategies, supplier relationships, and cost control.

These changes carry significant implications. Understanding how tariffs affect your operations and how to respond can help protect your margins and position your business for resilience.

What Are Tariffs and Why Do They Matter?

Tariffs are government-imposed fees on imported goods. While they are typically used to influence trade relationships or encourage domestic production, the direct result for businesses is clear: higher import costs, unpredictable supply chains, and added complexity in procurement planning.

When tariffs increase, so do the landed costs of the goods your business depends on. That can ripple through your entire operation, affecting contract pricing, production expenses, inventory planning, and ultimately profitability.

Key 2025 Tariff Updates

Recent adjustments include substantial increases affecting three major trading partners:

• China: Tariffs on all goods have increased by 20%.
• Mexico: A flat 25% tariff now applies to all imports.
• Canada: A general 25% tariff has been introduced, with a reduced 10% tariff for energy products such as electricity, oil, and natural gas.

An additional 50% tariff on Canadian steel and aluminum is scheduled for implementation in April 2025. Further trade measures are under consideration, signaling the potential for continued changes ahead.

For U.S. companies relying on international goods, these tariffs are expected to drive import costs up by 10% to 25%, making some supplier agreements financially unsustainable.

The Impact on Procurement and Finance

The effects of rising tariffs go beyond product pricing. They challenge the foundation of your procurement strategy and financial planning.

• Existing supplier contracts may no longer offer the value they once did.
• Cost forecasting becomes more volatile, affecting annual budgeting and profitability.
• Global sourcing may need to be re-evaluated to maintain supply chain stability.

These conditions require strategic action to manage risk and maintain control over costs and supply continuity.

How to Mitigate Tariff Risks

The good news? You don’t have to navigate this alone. CenterPoint Group offers immediate strategies to insulate your organization from the impact of tariffs. Here’s how we help:

• Contract Renegotiation: We work with you to renegotiate supplier agreements under the new tariff landscape, ensuring you’re not locked into outdated pricing that no longer makes financial sense.
  
  
• Access to Pre-Negotiated Agreements: Through our Group Purchasing Organization (GPO), you gain entry to pre-vetted contracts that bypass or minimize tariff exposure. This saves time, money, and stress.
  
  
• Leverage Buying Power: We consolidate purchasing volume across our GPO network to deliver better pricing, more stable supply chains, and minimized risk, even in a turbulent trade environment.

Don't Let Tariffs Derail Your Purchasing Strategy

With the trade landscape evolving rapidly and additional restrictions already on the horizon, there’s no time to wait. Now is the time to audit your contracts, evaluate your supplier base, and align with a partner who understands the global procurement terrain.

CenterPoint Group has been helping business enterprises navigate market volatility for over two decades. With our expert advisory services and extensive GPO network, we can help you stay compliant, cost-efficient, and confident, even as tariffs rise.

For more information, check out our one-pager on the 2025 tariffs.