How U.S. Tariffs Could Be Your Unexpected Push to International Expansion With IT

The latest wave of U.S. Tariffs is more than just a headline; it’s a growing strain on budgets and supply chains across all industries. With these major shifts, businesses feel the most pressure on their infrastructure and operations. But looking at it through a strategic lens, this moment of disruption could be the unexpected catalyst for something bigger: exploring new markets and expanding beyond geographical borders. 

In this blog, we’ll explore how IT plays a pivotal role in enabling global expansion in today’s trade climate. We’ll also share how ACS can support a smooth, secure, and scalable IT transition to help your business thrive across borders.

A Quick Recap on the Tariff Landscape

Back in 2018, the Trump administration redefined the U.S. trade policy by introducing a series of tariffs targeting China. These were five sets of tariffs that claimed to protect America’s national security. During that time, these special tariffs covered 14.9% of U.S. imports.

Now that President Trump is back in the office, he signed an executive order imposing a 10% tariff on all imports from China and a 25% tariff on imports from Mexico and Canada. The implementation was done by declaring a national emergency under the reasoning that there are a lot of undocumented immigration and drug trafficking. Although Trump agreed to a 3-day pause on his tariff threats against Mexico and Canada by February 3, the tariff on Chinese imports still goes into effect.

Eventually, this progressed into a broader trade policy that imposes a 25% tariff across key industrial sectors. This extends to most countries' aluminum, steel, automobile, and auto parts industries. Since then, businesses have expressed negative feedback on these implementations primarily because this will increase costs, create uncertainty, and disrupt the global flow of goods and services.

As a result, affected regions like China, Canada, and the European Union responded by imposing retaliatory tariffs on U.S. imports. These countermeasures targeted politically and economically sensitive sectors such as agriculture, manufacturing, and consumer goods to intensify trade tensions. This back-and-forth tariff escalation not only disrupted trade flows but also prompted many businesses to reassess sourcing strategies, diversify suppliers, and explore new markets abroad.

Why Businesses Are Looking Abroad

With the increase in costs, companies have been forced to rethink their strategies. What began as a simple way of respondfing to trade policies is now leading them to take a hard look at where and how they operate. These temporary pauses in their production have allowed them to explore global possibilities, consider domestic production, sourcing, and even IT infrastructure. 

Here are some reasons why businesses are now looking beyond the United States:

1. Rising Costs and Operational Pressure
   Businesses that export or rely on U.S.-based customers, components, and partners have already felt the impact of the tariffs. Manufacturers and providers abroad have reported rising costs and uncertainty within budgets and operations. The strain is especially challenging for businesses embedded in global supply chains with U.S. links.
   
   
2. Shifting Supply Chains and Outsourcing Trends
   The shifts drive new trends that push businesses to rethink their supply chains. Now, they are looking at reducing reliance on the U.S., shifting production to Southeast Asia or Latin America, and leveraging regional trade and outsourcing hubs. 
   
   
3. Having Access to Alternative Markets
   U.S. trade policies drive businesses outside the U.S. to look for better opportunities. Many are turning to emerging markets like Vietnam, India, and Mexico. These regions offer lower costs, skilled talent, and growing demand. Favorable trade terms and investment incentives make them even more attractive.

So, How Does IT help?

As businesses expand into new markets, IT becomes more than just a support function—it’s the backbone of global operations. If your goal is to go beyond geographical borders and time zones, an excellent IT will help you maintain productivity and scalability. These are some of the ways IT helps in global expansion:

• Enables Operational Flexibility and Scalability
  When expanding into international markets, companies must quickly adapt to new customer expectations, regulations, and business methods. A strong IT foundation helps make that possible. It allows enterprises to scale operations without setting up a physical presence in every location, use digital tools for collaboration and logistics, and connect systems across multiple sites and partners. With the right IT strategy, companies can move faster, cut costs, and stay flexible—even in complex global environments.
  
  
• Cloud Infrastructure, Cybersecurity, and Remote Management
  Businesses are turning to reliable IT tools like cloud platforms to support global teams and cross-border operations. These tools give teams easy access to data and applications from anywhere. To protect sensitive information across different regions, you need to strengthen your business’ cybersecurity too. 
  
  Besides that, IT makes it possible for companies to employ remote management. This allows them to monitor and maintain systems from a central location. These technologies form the foundation for efficient operations, from business software to warehouse systems and online fulfillment.
  
  
• Optimizing Global Operations
  When a business operates across multiple countries, consistency and coordination are must-haves. Integrated platforms like Enterprise Resource Planning (ERP) and Customer Relationship Management (CRM) systems help in making this possible. However, the activation of these systems requires a strong and adaptable IT infrastructure. Without the right IT foundation, businesses risk delays and costly disruptions. That’s why well-managed IT systems are essential.
  
  
• Facilitating Market Entry and Customer Experience
  Expanding into a new market isn’t just about setting up operations. It’s also about creating a smooth and localized experience for customers. IT plays a key role by adapting websites, apps, and platforms to fit regional languages, currencies, tax systems, and time zones. It also helps tailor e-commerce features to support local payment methods, shipping options, and user preferences. 

Navigate Global Growth with the Right IT Partner