Shippers Brace for New Regulatory Maze: Trade, Labor, and Cybersecurity in Focus

With continued and expanded tariffs expected to be imposed on imported goods, and as the incoming administration encourages the reshoring of manufacturing, consider adopting the following strategies to mitigate these effects:

• Reduce reliance on any single country by sourcing materials and products from multiple regions, including domestic suppliers.
• Assess your current supply chain structure to identify dependencies on foreign suppliers and potential vulnerabilities.
• Build up inventory levels of critical components and finished goods to provide a buffer against supply chain disruptions.
• Streamline logistics operations to reduce costs and improve efficiency to help offset the increased costs associated with tariffs.
• Implement advanced supply chain technologies, such as predictive analytics and automation, to enhance visibility and responsiveness.
• Use existing trade agreements, such as the USMCA, to obtain preferential tariff rates and other trade facilitation measures.
• Participate in industry associations and engage with policymakers to help influence trade policies and advocate for favorable conditions.

• Attract Local Talent: Develop strategies to attract and retain local talent, including offering competitive wages, benefits, and career development opportunities.
• Collaborate with Educational Institutions: Partner with local colleges and vocational schools to create programs that align with the skills needed for reshored manufacturing jobs.
• Flexible Workforce Models: Implement flexible workforce models, such as temporary staffing and contract work, to adapt to fluctuating demand.
• Compliance with Local Labor Laws: Ensure compliance with stricter local labor laws and regulations that may accompany reshoring initiatives.

Trade and Labor/Immigration regulations will be the first focus areas impacted, and the changes will be felt by many shippers. Historically, regulation changes have taken time, but these items are at the top of Trump’s agenda and will likely be swift and difficult to adapt to if unprepared.

• Trade Regulations: Includes tariffs, import/export restrictions, and trade agreements like the USMCA. Compliance with these regulations ensures smooth cross-border transactions.
• Labor and Workforce Regulations: Compliance with labor laws, including fair wages, working conditions, and safety standards, is crucial. This includes adhering to Occupational Safety and Health Administration (OSHA) guidelines.
• Environmental Regulations: Regulations such as the Restriction of Hazardous Substances (RoHS) and the Registration, Evaluation, Authorization, and Restriction of Chemicals (REACH) require companies to manage the environmental impact of their products and processes.
• Product Safety and Quality Standards: Ensuring products meet safety and quality standards, such as those set by the Food and Drug Administration (FDA) and the Consumer Product Safety Commission (CPSC).
• Cybersecurity and Data Protection: With the rise in cyber threats, regulations like the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA) require companies to protect customer data and ensure cybersecurity.

• Increased Documentation and Reporting: Compliance often requires extensive documentation and regular reporting to regulatory bodies, which can increase administrative workload.
• Higher Operational Costs: Meeting regulatory standards may involve additional costs for compliance audits, certifications, and implementing necessary changes in processes and products.
• Supply Chain Transparency: Companies need to ensure transparency throughout their supply chain, which involves tracking and verifying the compliance of suppliers and partners.
• Risk Management: Effective compliance requires robust strategies to identify, assess, and mitigate potential regulatory risks.
• Training and Education: Continuous training and education of employees on compliance requirements and best practices are essential to maintain adherence to regulations.

Regardless of the primary focus of the incoming administration, cybersecurity can't be overlooked. If you’re a shipper who hasn’t yet faced a ransomware attack, a cyber attack on your operational technology, TMS, or a data breach, this should become your new priority. You likely have vulnerabilities that you’re unaware of. Prioritizing cybersecurity in 2025, dedicating both time and resources, should be at the forefront of your strategic plan. Waiting for this administration to mandate it is not advisable.

Key Preparations:

• Strengthen cybersecurity defenses by investing in advanced technologies such as firewalls, intrusion detection systems, and encryption.
• Perform regular cybersecurity audits to identify vulnerabilities and ensure compliance with regulatory requirements.
• Implement comprehensive training programs to educate employees about cybersecurity best practices and how to recognize potential threats.
• Regularly update incident response plans to quickly and effectively address cybersecurity breaches.
• Work closely with supply chain partners to ensure they also adhere to robust cybersecurity standards, reducing the risk of breaches through third-party vulnerabilities.

Recently, a few members of our JBF team sat down to discuss the rise of cyber attacks and what shippers can do to protect themselves. They discussed cloud-driven vulnerabilities, the importance of redundancy, how to combat social engineering, and more. See their full insights: How to Protect Your Transportation Technology from Supply Chain Cyber Threats.

In order to navigate potential regulatory changes, shippers need to stay informed and proactive during all administration changes. The big difference with the Trump administration will be his focus on Trade, Immigration, and Reshoring taking priority on day one.

Shippers can mitigate tariffs by diversifying suppliers, optimizing logistics, investing in technology, and engaging in advocacy. Preparing for reshoring, adapting workforce strategies, and ensuring compliance with key regulations will help manage operational challenges. Additionally, staying prepared for changes in immigration policies and enhancing cybersecurity measures will be crucial for maintaining efficient and secure supply chain operations.

 This article was inspired by Logistics Viewpoints's Potential Trump Regulatory Changes and Their Implications for Supply Chain Compliance.