In today’s global landscape, export controls, tariffs, and other forms of trade policy have become more than just tools to correct economic imbalances. Instead, these things have become weaponized. They are used to reshape geopolitics and directly impact global supply chains.
And of course, the ones who feel the impact the most are the manufacturers around the globe who must scramble to stay ahead of the ever-shifting landscape. Join us as we explore these emerging trends that are changing the way manufacturers approach risk, and what you can do to stay ahead.
The Global Shift in Export Control Usage
Export controls were once niche tools. They were used sparingly and always with the intention of adjusting economic balances and trade deficits, but much has changed in the last decade. In today’s world, export controls have become essential instruments in geopolitical competition.
Not only does this shift have significant impacts on global electronics value chains, but it also stands to have a ripple effect on smaller countries and their ability to participate in global trade as well.
Electronics are at the center of this evolving landscape. The reason for this is because electronics have become ubiquitous in today’s world. Electronic components like semiconductors are used across industries.
By extension, the demand for rare earth metals and other raw materials is on the rise as well, some of which are heavily concentrated within certain regions of the world where they are found. This creates opportunities to shift the balance of power by limiting or denying access to them, and in some cases, the advanced manufacturing equipment needed to create them.
China’s restriction on rare earths in April brought global supply chains to a halt and brought the current U.S. administration into negotiations, but that decision has already had an effect on Chinese companies as well.
The restrictions led to a 75% drop in magnet exports in the first two months after the restrictions were imposed. The U.S. and China have since begun discussions about getting rare earth exports going again.
Beijing and Washing implemented a new agreement in July of 2025 that lifted restrictions on rare earths, which is a step in the right direction. However, the agreement could still be altered as a result of any future shifts in the U.S.-China tensions.
Meanwhile, tariffs continue to inject uncertainty into the global landscape. Former prime minister Gordon Brown has accused the current U.S. administration of “weaponising” the global trade system with steep import tariffs that he believes could result in a “breakdown” of the global economic order.
The former PM’s perspective is that central banks and governments should come up with what he calls a “global rescue plan,” which could include synchronized interest rates that would soften the blow from tariffs.
While these steps are viable, from a global manufacturing perspective, exports controls and tariffs still present a significant threat to businesses. Downstream effects on supply chains could result in part shortages, price spikes, and further delays due to long lead times.
With the only certainty in today’s landscape being the presence of uncertainty, industry leaders need to brace for impact and fortify their supply chains.
How to Fortify Your Supply Chain for Tariffs and Trade Wars
Monitoring government policy and lobbying for the interest of global manufacturers are important steps to mitigate risk, but there are several other, more direct routes that leaders can take to help fortify their supply chains starting today.
Here are several actions teams can take immediately:
- Adopt a multi-sourcing strategy
- Examine country of origin to identify lower-risk parts
- Collaborate directly with suppliers
- Provide teams access to real-time market insights
- Focus on cross-functional collaboration to avoid downstream issues
Ultimately, things like tariffs and export controls aren’t going anywhere. Global supply chains must adapt for what’s next, and a large part of that involves shifting focus towards outside-in intelligence and a proactive approach to risk in the supply chain.
Learn more about how Supplyframe helps organizations brace for tariff and download our latest report here.