3 Strategies to Help Companies Stay Ahead Amid Trade Disruptions

Global trade regulations are constantly evolving, creating uncertainty for businesses. Tariffs shift, export restrictions tighten, and supply chains face growing risks. Companies must navigate these challenges strategically to avoid disruptions. In a recent episode of the SCMR podcast Frictionless Supply Chain, trade expert Karen Murphy provided insights into how organizations can manage compliance, mitigate risk, and adapt to changing trade policies. Here are three key takeaways for businesses looking to maintain stability in an unpredictable trade environment.

1. Trade Compliance Is More Than Just Paperwork

Many companies think of trade compliance as filling out forms and waiting for approvals. But as Murphy explains, it’s much bigger than that. Compliance extends to software, intellectual property, and even casual conversations with foreign nationals.

“There’s a misconception that trade compliance only applies to physical products,” Murphy said. “In reality, sharing sensitive technology—even in a casual conversation—can require an export license.”

Ignoring these rules can result in massive fines or even loss of access to key markets. Companies need to be proactive in understanding trade regulations beyond just import-export paperwork.

2. Semiconductor Supply Chains Are Under Tight Scrutiny

The U.S. government is cracking down on semiconductor exports, especially to China. Murphy highlighted how American companies initially moved chip production overseas to cut costs but now face tough restrictions on exporting high-tech components.

“The U.S. government thought Chinese factories would stick to making chips for basic appliances,” Murphy said. “But as they moved into higher-end tech like mobile devices and servers, the stakes got a lot higher.”

Now, businesses must navigate complex export controls to ensure they don’t violate new semiconductor restrictions. Keeping up with these shifting regulations is critical to avoiding costly mistakes.