The recent executive order by President Trump imposing a minimum 10% tariff on nearly all U.S. imports—along with a staggering targeted 125% tariff on Chinese goods—resulted in a significant market downturn, wiping out trillions in global equity value. However, a 90-day reprieve for all imports except those from China led to a remarkable rebound in the S&P 500. This climate of unpredictability highlights the necessity for companies to evolve beyond static sourcing models and rigid contracts to a more anticipatory, strategic contract management approach.
In a world where trade policy can flip overnight, strategic contract management isn't a back-office task: it's frontline anticipatory thinking and action.
This isn't just volatility; it's a stress test. Firms still relying on static sourcing models and boilerplate contracts are gambling with their margins.
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