Navigating the New Era of Tariffs
January 28, 2025
Welcome to The Sidekick, a monthly procurement newsletter dedicated to Sourcing Heroes around the country.
Una is a group purchasing organization that helps over 10,000 active members save more money and simplify procurement.
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🗞️ New News! Well, Kinda...
A new look and feel to The Sidekick.
The Sidekick was launched at the beginning of 2024 to showcase the way procurement and supply chain professionals work at the cutting edge of business trends, the economy, and geopolitical issues.
Kris Lance, Una's VP and General Manager, purposely touched on topics that ranged from food insecurity and port disasters, to the implications of AI and hustle culture because nearly everything that happens at home and abroad impacts the supply chain in some way.
If you've come to know and love a hot take, don't worry!
The Sidekick will still address procurement challenges head on in a no-nonsense kind of way. You can expect to see more tailored solutions as to how Una works to support you and your team. We'll incorporate real-life examples from members when appropriate, ask for input and include your feedback, and report on news from our supplier partners. The occasional pop culture reference or funny meme isn't out of the question, either!
Our continued hope for The Sidekick is to share new perspectives when it comes to procurement and supply chain, provide valuable and actionable takeaways, and form connections with our members and subscribers.
With that, let's dive into Issue #013!
Being smart about risk means having the flexibility to pivot quickly and seize the opportunities that come with significant changes. As we anticipate shifts in US trade policy, especially regarding the new tariffs announced by President Trump, organizations have a chance to adapt and thrive.
This edition of The Sidekick explores the implications of these developments and highlights strategies for turning challenges into advantages.
We'll also discuss FedEx’s move to spin off its freight business, rising prices for FedEx and UPS shipping, the ever-growing power needs of data centers, and AI’s “Sputnik” moment.Â
To our members and colleagues in California:
Whether you are located in the Los Angeles area directly impacted by the fires, know someone who is, or are simply reeling from the devastation in your state, please know that the Una team is here and thinking of you.
If there is anything we can do to support you during this challenging time, please don't hesitate to reach out.
🗺️ A Major Shift in Trade Policies
Challenges and opportunities ahead.
President Trump has announced plans to implement a 10% tariff on imports from China starting as soon as February 1st, alongside a proposed 25% tariff on goods from Canada and Mexico. While these changes may seem daunting, they also present an opportunity for businesses to reassess their strategies and innovate.
By targeting Canada and Mexico, these tariffs could serve as valuable negotiating tools ahead of the review of the United States-Mexico-Canada Agreement (USMCA) in 2026.
While experts caution about retaliatory tariffs and reduced consumer spending—potentially lowering U.S. consumer spending power by up to $78 billion—this environment could motivate companies to explore new markets, diversify their supply chains, and innovate their offerings to maintain a competitive edge.
How One of Una's Members is Adapting
One of Una’s retail members has been making some solid moves to mix up its sourcing strategies and reduce the risks tied to possible tariff hikes. In the past, they relied heavily on China for their inventory, sourcing more than 70% of their goods from there back in 2019. Fast forward to 2024, and they’ve cut that down to 50% and are planning to diversify even more.
The CFO mentioned that this change was crucial for staying ahead of shifting trade policies. By sourcing from multiple countries, they’re looking to lessen the blow from any potential tariffs. They also sped up inventory deliveries and tweaked shipping routes to dodge disruptions from labor disputes at East Coast ports.
On top of that, the retailer has rolled out new warehouse management systems and started exploring on-demand delivery options. Overall, these steps show a smart response to the unpredictable trade landscape while keeping their operations running smoothly.
Other Strategies for Adaptation
Organizations can consider the following proactive strategies to make the most of this evolving landscape:
- Assess Your Supply Chain: Use this moment to evaluate and diversify your supply chains. Identifying dependencies on targeted countries can help create a more resilient framework.
- Manage Costs Wisely: Prepare for potential cost increases by exploring cost-cutting measures and adjusting pricing strategies. This approach will help maintain competitiveness and protect profit margins.
- Engage in Advocacy: Stay informed about policy developments and advocate for favorable trade terms through industry associations.
- Scenario Planning: Develop contingency plans for various tariff scenarios. Forward-thinking procurement professionals have been planning for the possibility of tariff hikes since Trump first hit the campaign trail.
- Invest in Technology: Embrace technology that enhances supply chain visibility and efficiency.
- Financial Preparedness: Strengthen your financial strategy by building cash reserves or securing lines of credit to withstand price fluctuations and increased operational costs.
- Employee Training and Communication: Cultivate a culture of adaptability by educating employees about the potential impacts of tariffs and trade policies. Open communication keeps the team informed and ready to embrace change.
- Join a Group Purchasing Organization (GPO): Mitigate the financial impact of tariffs by joining a GPO to leverage collective buying power and favorable contract terms.
Things are moving fast. The weeks ahead will be crucial, and those who prepare effectively will be equipped to thrive under new trade policies.
By remaining agile and open to new possibilities, procurement and supply managers can seize this moment to transform challenges into opportunities for growth.
đź“° In Other News...
Keeping a pulse on the industry.
FedEx is set to spin off its freight business into a new publicly traded company called FedEx Freight over the next 18 months. This decision comes as demand for express delivery services slows down, leading FedEx to focus more on its parcel shipping operations, which many consumers recognize, especially during the holiday rush.
For procurement and supply managers, this change could mean rethinking logistics strategies and supplier relationships. With FedEx Freight becoming a standalone entity, it's essential for managers to assess how this impacts their freight sourcing and contract negotiations.
Additionally, with both FedEx and UPS increasing shipping rates by an average of 5.9% for 2025, the pressure is on organizations to find smart ways to manage costs.
One way to navigate these rising expenses is by joining a GPO like Una. This can give companies access to better pricing and volume discounts, helping to cushion the blow of higher shipping costs. Exploring options like using multiple carriers and automating shipping processes can also make a real difference.
Power-hungry data centers: Power demand in the U.S. has remained stable for 15 years due to efficiency gains, but this is changing. Increased manufacturing, the rise of electric vehicles, and the growing energy needs of data centers for artificial intelligence are expected to put pressure on the power grid.
You may have seen in the news that power hungry data centers are - at present - one of the only things keeping ageing coal-fired power plants online. We can expect those in charge of Power Purchasing Agreements (PPAs) to become one of the most strategic procurement roles in any tech organization.
There’s only so much customers will pay: A recent survey of 250 CPG executives found that 51% don’t think they can rely on price hikes for revenue growth this year, especially among household goods companies, where the figure jumps to 62%.
Only 30% believe they can raise prices by over 3% without hurting sales, and nearly half expect retailers to push back against more increases. Instead, these companies are shifting focus to innovation, often leaning towards premiumization strategies.
To support these plans, 68% aim to improve efficiency through simplification, digitalization, and AI, especially in marketing and sales, where they see the best returns.
Not really AI’s “Sputnik Moment”: Amid stock market bloodshed and a panicking tech sector, one commentator compared the arrival of China’s DeepSeek with the USSR’s launch of Sputnik. Although DeepSeek reportedly outpaces US AI models in both technical tasks and affordability, we would class it as healthy competition rather than the reveal of an enormous technological gap (as Sputnik was).
You can imagine the shock in 1957 when the US realized they had been beaten to space, followed by a second shock in 1961 when Soviet cosmonaut Yuri Gagarin became the first human to reach low orbit.
But if you think of a Sputnik moment as a point where people realize their position is being seriously challenged and that they need to ramp up their efforts, DeepSeek could provide the spur that AI development has lacked. After all - without Sputnik, we never would have made it to the moon. Â
✨ Supplier Spotlight
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🌟 New resources from Una
- Procurement’s Role in Creating a Culture of Continuous Improvement
- Spot the Difference: Buying Groups, Purchasing Cooperatives, and GPOs
- Managing Procurement Risk with a Group Purchasing Organization
- Understanding CapEx vs. OpEx in Procurement (and How Your GPO Can Help)
 Download a free PDF of our newest guide 👇

🎙️ New From The Sourcing Hero Podcast
- Episode 196: The Best of Kris Lance in 2024
- Episode 197: Sourcing Initiatives That Take Into Account the Strategy of the Business with Karen Betancourt
- Episode 198: Testing the Elasticity of Procurement with Peter Sharoff
- Episode 199: A Broader Perspective on Social Procurement with Jaime H. Paiva
Check out our Youtube Channel for a special edition of The Sourcing Hero podcast featuring Kris Lance & Anthony Clervi. Episode 200 goes live January 29th! 👇

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