How 2025’s Trade War Reshaped Supply Chains And Strategy

Trade didn’t just wobble in 2025—it rebalanced around power, policy, and materials. We trace how sweeping U.S. tariffs set off global retaliation, why price shocks hit cars and chips harder than couture, and how rare earths turned from invisible ingredients into geopolitical leverage. Along the way, we unpack China’s end-to-end grip on mining, refining, and magnet manufacturing, and the precise export controls that rippled through defense, EVs, drones, and semiconductors. We also explore the human side of policy whiplash: small and mid-sized firms facing sudden cost spikes, European automakers rerouting inventory, and Indian exporters navigating doubled duties in a matter of months. As supply chains bent out of shape, new shadow routes through Southeast Asia added opacity and cost, while markets priced in a longer, messier trade war. The bigger story is trust—alliances frayed, blocs reformed, and institutions from the WTO to central banks struggled to stabilize rules that businesses rely on. Closer to home, we break down the UK’s 10-year industrial strategy—its bet on AI, quantum, biotech, creative industries, and modern energy grids—and the fiscal choices that risk starving it of private capital. We lay out what execution requires: cheaper energy, predictable taxes, faster permitting, and tighter links with the EU to cut friction where supply and demand still meet. The takeaway is sober but practical. Tariffs are blunt tools that ricochet through the system; resilience comes from diversified sourcing, recycling, design-for-substitution, and policy coherence that signals stability instead of surprise. If this year taught us that globalization can fragment overnight, 2026 demands a rebuild rooted in coordination and calm. Listen, share your perspective, and help us map a smarter path forward. Subscribe, leave a review, and tell us: what’s the first fix you’d make to restore stability? Send us a text Support the show THANKS FOR LISTENING PLEASE SUPPORT THE SHOW You can support the podcast by following the link here. It makes a big difference and helps us make great content for you to listen to. Follow like and share the Chain Reaction Podcast with colleagues and friends on social media: Facebook, Twitter, LinkedIn. News about forthcoming programmes click here SHARE Please share the link with others so they can listen too https://chainreaction.buzzsprout.com/share LET US KNOW If you have any comments, suggestions or questions then just direct message on Linkedin or X (Twitter) REVIEW AND RATE If you like the show please rate and review it. Every vote helps. About Tony Hines and the Chain Reaction Podcast – All About Supply Chain Advantage I have been researching and writing about supply chains for over 25 years. I wrote my first book on supply chain strategies in the early 2000s. The latest edition is published in 2024 available from Routledge, Amazon and all good book stores. Each week we have special episodes on particular topics relating to supply chains. We have a weekly news round up every Saturday at 12 noon...