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Tariffs Shape Regional Supply Chain Strategies

[ June 12, 2026   //   ]

Companies are increasingly shifting toward regional supply chains, multisourcing strategies and foreign trade zone operations as tariffs, geopolitical risks and supply chain disruptions make global networks more difficult to manage, according to a supply chain expert speaking during FreightWeekSTL 2026.

Panos Kouvelis, Emerson Distinguished Professor of Supply Chain Operations and Technology at Washington University in St. Louis, said businesses are moving away from long, cost-driven supply chains in favor of networks designed to improve resilience, flexibility and speed to market.

Kouvelis highlighted the growing value of foreign trade zones (FTZs), which allow companies to store, assemble, process and reconfigure imported goods while deferring or reducing duty payments. He noted that FTZs can also provide “inverted tariff” advantages when imported components face higher duties than finished products.

The discussion emphasized that changing trade policies and tariff volatility are forcing companies to revisit sourcing, inventory and production decisions more frequently than in the past.

“We used to think about finding low-cost suppliers, typically very far away,” Kouvelis said. “Now it’s important to have multiple suppliers, much closer to our market.”

Kouvelis said regional supply networks supported by multimodal transportation infrastructure will play an increasingly important role as companies seek greater supply chain resilience and operational flexibility.

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