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How AI is Helping Businesses Adapt to Complex Global Trade and Tariffs

BusinessHow AI is Helping Businesses Adapt to Complex Global Trade and Tariffs

Businesses are increasingly turning to artificial intelligence (AI) tools to manage the growing turbulence in global trade and supply chains. As international tariffs and trade policies evolve rapidly, companies face unprecedented challenges in tracking the materials used to make their products and understanding the impact of tariffs imposed by various governments, particularly in the U.S. The complexity and speed of these changes make manual tracking nearly impossible, prompting firms to embrace AI-driven solutions that offer greater clarity and agility.

One major technology company recently introduced an AI-powered import specialist designed to instantly analyze tariff changes across all product categories in the U.S. customs system and respond accordingly. This AI tool draws on comprehensive tariff schedules, which run thousands of pages long, to provide up-to-date guidance on how new tariffs affect imports. The vast scope and frequent updates of such tariff schedules make it challenging for businesses relying solely on human expertise to stay current, but AI enables them to rapidly digest and apply this information to operational decisions.

Manufacturers and distributors are using AI systems not only to track tariffs but also to simulate adjustments to their supply chains. By analyzing the components that make up a product, including raw materials and parts, AI helps companies understand which items are subject to increased tariffs and explores alternatives that might reduce costs. For example, if a certain component faces a high tariff, the AI can simulate the impact of switching to a substitute part, helping businesses evaluate the overall effect on production costs and pricing.

This approach is proving crucial as companies across industries face pressure from escalating tariffs that affect their sourcing and pricing strategies. Retail giants and global brands have already begun raising prices in response to increased costs caused by tariffs on imported goods. The United States alone imported trillions of dollars worth of goods recently, underscoring the massive scale of international trade affected by such policies.

Experts highlight that the uncertainty and frequent changes in trade policy have created a prime opportunity for AI to demonstrate its value. By automating complex analysis and providing actionable insights, AI helps companies adapt more swiftly to volatile market conditions. This capability not only enhances decision-making but also supports resilience in supply chains, reducing risks associated with sudden tariff adjustments and geopolitical shifts.

In addition to tariff-related insights, AI tools can incorporate external data such as news reports and macroeconomic indicators to provide a more holistic view of supply chain risks and opportunities. This allows companies to anticipate potential disruptions and make strategic moves before challenges become critical.

Overall, AI is becoming an indispensable tool for businesses seeking to thrive amid the uncertainties of modern global trade. Its ability to process vast amounts of data, run detailed simulations, and offer rapid guidance is reshaping how companies manage supply chains and respond to evolving tariffs, ultimately helping them maintain competitiveness and operational efficiency in a complex international environment.

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