(23 September 2025 – United States) Global supply chains are slowly bouncing back to normal as retailers steadily adapt to tariffs and geopolitical tensions according to Wells Fargo.
Retailers paused major orders during the tariff uncertainty but front-loaded orders in advance of the holiday season once the situation became clearer.
US tariffs destabilised global trade in H1 2025 however retailers are now responding actively as potential delays caused by shifting trade flows force retailers to implement inventory strategies. To cope with uncertainty, importers are relying on careful inventory management, predicting demand far in advance and using flexible inventory strategies to stay resilient.
Importers and exporters are reducing investment to cope with higher costs without transferring them to consumers in the form of higher prices, reflected in volatile official non-farm payrolls and unemployment data. The labour market has softened as both the demand for and supply of workers have diminished.
“Business owners and people leading mid-size businesses are happy that this country is dealing with the trade inequities that existed, so they feel good about that and they’re willing to deal with the uncertainty” commented Wells Fargo CEO Charles Scharf.
“What I’m not seeing is delaying plans or not hiring because of the cost of the tariff. I think you can certainly see some delay in hiring or delay in capital expenditures because of uncertainty and caution, but not directly related to tariffs. We’ve seen a modest increase in the use of reverse factoring facilities throughout the year giving buyers more time to pay suppliers and maintain liquidity, while still letting suppliers receive their funds in good time” stated Wells Fargo Supply Chain Finance Head of Global Originations, Jeremy Jansen.
“Businesses have done a wonderful job at adjusting to some of the new realities of the costs associated with tariffs” Jansen added.
Some companies have begun to diversify their banking relationships away from the giants of Wall Street according to data compiled by Bloomberg. That’s been a boon for Europe’s leading banks, which have been actively vying to win the extra business.