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Supply chain diversification gains urgency amid global trade volatility

Uncertainty around tariffs and geopolitical tensions is pushing furniture importers to rethink their sourcing strategies, according to a supply chain expert who says diversification and risk management are becoming increasingly critical for businesses navigating global trade.

© Mr.siwabud Veerapaisarn | Dreamstime

Jackson Wood, director of industry strategy for global trade intelligence at Descartes, explained that rapidly shifting tariff policies over the past year have made sourcing decisions more complex for many companies. Each new announcement, exemption or pause has forced importers to reassess their supply chains, often with limited clarity about long-term implications. In this environment, access to reliable trade data is becoming essential for understanding market developments and identifying emerging sourcing patterns.

Although many businesses have begun exploring alternatives to China, Wood cautioned against assuming that a large-scale, permanent shift away from the country is inevitable. The economic relationship between the United States and China remains deeply interconnected, making it difficult to predict whether current changes represent structural transformation or temporary adjustments. Despite diversification efforts, China continues to play a major role in global manufacturing.

Countries such as Vietnam and India have seen increased export activity, particularly in furniture, but their long-term ability to replace China's manufacturing capacity remains uncertain. While early signs are promising, questions remain about infrastructure development and scalability as demand grows.

Another complicating factor is the issue of transshipping, where goods are routed through intermediary countries to obscure their origin and potentially avoid tariffs. While the scale of the practice is difficult to measure, many companies are tightening internal compliance procedures and documentation requirements.

Ultimately, Wood emphasised that diversification is easier said than done, but failing to adapt to ongoing volatility may present an even greater risk for global furniture supply chains.

Source: www.furnituretoday.com

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