There are many interesting and important parallels between the current global tariff landscape and the United Kingdom's experience with Brexit. The following 10 key points delve into the economic and political drivers behind both events and, more importantly, the takeaways for supply chain professionals.

1. Perils of uncertainty: Prolonged ambiguity regarding trade policies, as seen with Brexit's drawn-out implementation, paralyzes business decisions and hinders long-term supply chain planning. Tariffs create similar uncertainty, which discourages investment and strategic alignment.
2. Fast, strong impacts: While Brexit unfolded over years, the effects of tariffs are felt almost instantly through increased costs and altered trade flows. Supply chain professionals must be prepared for rapid adjustments and understand that even seemingly temporary measures can have lasting consequences.
3. Interdependent trade relationships: Brexit highlighted that even significant economies are part of complex global trade networks. Tariffs, by disrupting established relationships, can lead to unforeseen retaliatory measures and negatively affect both import and export activities, often harming domestic industries.
4. Insufficient government preparedness: Both Brexit and the implementation of tariffs can suffer from a lack of clear strategy, communication and thorough impact analysis. Supply chain professionals should anticipate policy shifts and advocate for transparent and well-considered trade policies.
5. Labor markets affected: Brexit caused direct labor shortages in the United Kingdom. Likewise, tariffs can indirectly alter labor needs by shifting production locations and cost structures, potentially making domestic production less competitive in certain sectors.
6. Reshoring more than just factories: Bringing manufacturing back home requires substantial long-term investment in infrastructure, skilled labor and supporting ecosystems. Tariffs alone won't magically create these conditions, and supply chain professionals need to consider the feasibility and timeline of such shifts.
7. Shipping and logistics issues: Brexit's border friction caused significant shipping delays and cost increases due to new checks and paperwork. Learning from Brexit's experience, supply chain professionals should expect increased port congestion, complex customs and transit delays, which will have an impact on both lead times and transportation costs.
8. Small business burden: The increased paperwork, customs complexities and logistical hurdles resulting from Brexit disproportionately affected smaller businesses. Tariffs are creating significant similar challenges, plus leading to less available capacity to absorb costs or navigate complex trade regulations.
9. Unintended consequences: Both Brexit and tariffs have generated unforeseen negative outcomes, such as reduced trade, increased bureaucracy and disruptions to specific industries. As always, supply chain professionals must be agile and prepared to adapt to ripple effects. 
10. Intent-outcome mismatch: The initial goals of Brexit haven't necessarily materialized, leading to less trade and ongoing economic challenges. Similarly, the intended outcomes of tariffs — protecting domestic industries, reducing trade imbalances —may not be fully realized and could lead to negative outcomes for supply chains and consumers. Supply chain professionals play a crucial role in bridging the gap between policy intent and real-world outcomes. By providing data-driven insights, fostering collaboration and building agile networks, they can help their organizations navigate the complexities of the tariff landscape.

For more detailed information and updates on tariffs, access ASCM’s Tariff Tracker.