How Trump's tariff chaos is already changing global trade
Mar 17, 2025
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Evan Smith, Co-founder and CEO of Altana, discusses his vision of a transforming global trade landscape. He explains how Trump's tariff policies are reshaping supply chains, pointing out the chaotic repercussions for businesses worldwide. The conversation highlights the complex U.S.-China relations and the evolution of manufacturing due to globalization. Smith emphasizes the necessity of advanced technologies, like AI, to navigate new trade dynamics and adapt to ongoing geopolitical tensions. It's a deep dive into the future of international commerce.
Evan Smith discusses the decline of traditional globalization, emphasizing the need for companies to adapt their supply chains amid geopolitical tensions and environmental concerns.
The podcast highlights how U.S.-China trade dynamics are influencing manufacturing strategies and the challenge of decoupling from Chinese dependence.
Altana's software utilizes AI to improve supply chain resilience by enhancing visibility, assessing compliance, and identifying vulnerabilities amidst shifting trade policies.
Deep dives
The Shift from Globalization to Strategic Adaptation
Evan Smith, co-founder and CEO of Altana, discusses the transition from traditional globalization to a new era of strategic adaptation in supply chains. He argues that globalization, as it has been practiced since World War II, is breaking down due to various factors, particularly rising geopolitical tensions and environmental concerns. The chaos introduced by events like the COVID-19 pandemic has further highlighted the fragility of just-in-time supply chains that rely on stability. Altana aims to help companies adapt to these changes and navigate the uncertainty by providing software solutions that enhance visibility and management of complex supply chains.
Navigating U.S.-China Trade Dynamics
The discussion sheds light on the intricate dynamics of U.S.-China trade relations and their impact on global supply chains. Smith emphasizes that while manufacturing can be brought back to the U.S. and North America, it will not happen overnight and comes with challenges due to existing dependencies on Chinese manufacturing. He notes that U.S. policymakers are keen on strategically decoupling from China, focusing on critical industries like telecom and defense. The realities of doing so, combined with historical context and the rise of nationalism, complicate the feasibility of this decoupling in a short time frame.
The Role of AI and Data in Supply Chain Management
Altana's software models the entire global supply chain, functioning like a map that illuminates the relationships between companies and their suppliers. The platform supports businesses in visualizing and managing their value chains efficiently. By leveraging AI, Altana helps organizations detect vulnerabilities in their supply chains, assess compliance with regulatory requirements, and automate complex workflows. This technology allows companies to gain insights into their supply chains and mitigate risks associated with disruptions, ultimately enhancing their resilience.
Implications of Economic Policies and Tariffs
The conversation touches on the direct implications of tariffs and U.S. trade policies on supply chain dynamics. When new tariffs are announced, companies often reconfigure their supply chains to avoid increased costs, which leads to shifts in where products are sourced and manufactured. Smith elaborates on how historical tariff policies led to shifts in production to places like Mexico and Canada, enabling companies to navigate trade barriers effectively. He underscores the importance of aligning manufacturing strategies with evolving trade policies to ensure compliance while maintaining competitiveness.
Future Outlook: Resilience in Supply Chains
Looking forward, Smith expresses optimism about the potential for North America to establish a robust manufacturing base, driven by advancements in technology and automation. He believes there is sufficient capacity within North America to support a shift in manufacturing, driven by market demands and geopolitical realities. The idea of creating a distinct manufacturing ecosystem akin to China’s Shenzhen in North America excites him. According to Smith, fostering this environment involves leveraging capital, skills, and regulatory frameworks to build resilient supply chains that respond effectively to market and political forces.
I'm talking to Evan Smith, who started Altana in 2019 because he predicted the first wave of globalized manufacturing and trade would end, and that companies would want new powerful tools to adapt their supply chains as the world grew more complex. Here in 2025, that looks like a pretty good bet — even if the way it's playing out is more stressful and chaotic than anyone really wants it to be.
There are some big, unsettling ideas here, but talking about them directly and with clarity at least made me feel like I had a framework to understand the endless on-again, off-again news cycle on tariffs and trade.
