Parallel Supply Chains: How Boards Lead Through Tariff Uncertainty

Rising protectionism, trade wars, and escalating tariff regimes are reshaping the global economy. In this environment, the expectation that goods and talent can move freely across borders no longer holds. Instead, leaders face a new reality - permanent volatility in global trade.  

At the centre of this shift sits a core dilemma for boards: how to ensure supply chain resilience without pricing themselves out of the market. Strategic security is no longer a luxury. It is an imperative. But at what cost? 

Tariff Volatility: The Boardroom’s Blind Spot 

The unpredictability of tariffs has become one of the most disruptive forces boards must contend with. Once considered a matter of policy nuance, tariffs now swing rapidly with political shifts, national security agendas, and international disputes.  

Boards can no longer rely solely on historical data or linear projections. Traditional risk models are struggling to keep up. In this environment, board leaders must prioritise scenario planning, expand their geopolitical fluency, and accept that tariff-driven shocks are no longer outliers but are part of the operating environment. 

The Rise of Parallel Supply Chains and Their Costs 

To hedge against trade risk, many global businesses are pursuing parallel supply chains. This includes reshoring operations, developing alternative production hubs, and replicating logistics networks across markets. In some cases, this includes entirely autonomous businesses running in parallel. These strategies reduce reliance on any single region, but they come with significant costs.  

Boards are approving capital-intensive investments to duplicate not only physical infrastructure but also leadership capabilities. In many cases, this means creating mirrored executive teams, governance structures, and oversight mechanisms.  

Resilience vs. Affordability: A Strategic Trade-Off 

With each strategic pivot toward greater resilience, boards are confronting hard financial decisions. How much redundancy is prudent, and how much is wasteful? Some organisations, in pursuit of security, have built out infrastructure that sits underutilised. Others have delayed action and found themselves scrambling to react when new tariffs hit.  

The most effective boards are neither over-correcting nor under-preparing. They are defining resilience thresholds based on realistic risk exposure and organisational capacity. 

This is where the board’s ability to guide with strategic restraint becomes crucial. Not every supply chain requires duplication. Not every market demands a local footprint. Board leaders must decide where to invest, where to wait, and where to walk away. 

The Consumer Question: Who Pays for Resilience? 

Even the best-designed strategies must ultimately face the market. One of the hardest questions boards are grappling with is whether consumers are willing to absorb the price of resilience. In many sectors, the answer remains unclear.  

Boards are exploring new pricing models, investing in customer education, and weighing how much transparency to offer around sourcing and security. For consumer brands, the risk of reputational backlash is real.  

Raising prices in the name of resilience can be a hard sell unless it is paired with a clear narrative around quality, security, and long-term value. Leaders must be alert to shifting consumer expectations and willing to test assumptions early. 

Board Leadership in an Era of Persistent Uncertainty 

In this environment, the qualities that define effective board leadership are changing. Traditional governance skills remain important, but boards also need directors with a global mindset, operational expertise, and a high tolerance for ambiguity.

Boards that succeed in this era will be those that blend traditional oversight with a more proactive, strategic posture. They must also ensure their CEO and executive teams are supported by directors who understand supply chain dynamics, trade regulation, and the broader geopolitical landscape. 

From Defensive to Strategic Resilience 

Resilience is often viewed as a defensive move, a way to survive disruption. But for boards willing to think boldly, it can be a source of competitive advantage. The investments made today in parallel supply chains, local leadership, and diversified operations are not just risk responses, they are strategic assets in a more fractured world.  

The question is no longer whether to adapt, but how to do so without compromising financial performance or consumer trust. Boards that lead through uncertainty with clarity, courage, and discipline will be those that shape the next chapter of global business. In a time of fragmentation, can your board afford not to lead? 

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