# Artificial Intelligence: The Answer to Tariff Challenges

Mar 14, 2025

_...the current environment has brought unprecedented challenges, with sweeping tariffs reaching 20-75% on imports from China, but also significant tariffs on traditional US allies such as Canada, Mexico and Europe..._

_AI-driven procurement solutions like Didero offer a clear path to navigate these complexities._

## **Immediate Impact of Tariffs**

**Current Tariff Realities**

- **Severe Cost Increases**: Tariff rates now rival levels not seen since World War II, driving up costs on imported goods across a wide range of sectors

- **High Uncertainty**: With tariffs targeting both U.S. allies and adversaries—and often announced with little warning—companies face constant unpredictability and shifting rules

- **Supply Chain Upheaval**: Companies are scrambling to adjust supply chain footprints, causing widespread logistical disruptions and operational strain

- **Operational Overload**: Procurement teams are overwhelmed by manual adjustments to rapidly shifting sourcing needs, underscoring the urgent demand for automation and smarter tools

## **What Supply Chain Leaders Should Do Now**

**Step 1: Assess Your Exposure** Start by evaluating how exposed you are to current and potential policy changes across multiple scenarios.

**Step 2: Triage and Prioritize** With exposure mapped, prioritize suppliers and materials to de-risk based on potential tariff impacts.

**Step 3: Identify and Qualify Alternative Suppliers** Actively explore alternative suppliers—especially in diverse geographies—to hedge against uncertainty.

**Step 4: Develop and Execute a Strategic Action Plan** Once alternatives are lined up, create a clear, actionable plan to onboard and manage them effectively.

## **How AI Can Simplify and Accelerate the Process with Didero**

### **Without AI**

- **Manual-Heavy and Time-Consuming**: Conducting exposure analysis, supplier discovery, and risk assessments requires countless hours of research and dedicated resources.

- **Resource Intensive**: Identifying alternative suppliers and managing communication and compliance across geographies often demands a large team and substantial time.

- **Limited Real-Time Visibility**: Tracking suppliers across different geographies and adjusting plans to shifting tariffs can be challenging without real-time data.

### **With a Solution Like Didero**

1. **Automated Exposure Analysis**: Didero’s AI rapidly identifies exposure across your supply chain.

2. **Supplier Discovery and Prequalification**: Didero’s AI-powered sourcing identifies and prequalifies suppliers in tariff-friendly regions.

3. **Streamlined Onboarding and Management**: Automated workflows simplify onboarding for new suppliers.

4. **Efficient Resource Use**: By automating core procurement tasks, Didero enables your team to focus on strategic decisions.

## **Staying Competitive Amid Tariff Increases**

- **Strategic Sourcing Decisions**: With insights from Didero’s AI, supply chain leaders can make informed sourcing choices.

- **Enhanced Visibility into Spend and Supplier Performance**: Real-time insights into spend and supplier reliability allow procurement teams to make proactive adjustments.

- **Focus on High-Value Tasks**: By automating labor-intensive processes, Didero empowers teams to concentrate on high-impact strategic sourcing activities.

## **Conclusion: AI as a Strategic Solution for Tariff Resilience**

AI-powered platforms like Didero offer a critical advantage. By reducing resource strain and enabling rapid supplier pivots, Didero gives businesses the agility to adapt in real time.