In an increasingly volatile global trade environment, specialty chemical companies are facing a new round of tariffs and trade policy disruptions that could reshape sourcing, pricing, and production decisions for the foreseeable future. With the U.S. imposing fresh duties on imports from key trading partners—including elevated tariffs on Chinese goods and new levies on materials from Canada and Mexico—the cost structure and competitive dynamics in the industry are being put to the test.
So, what can companies do to navigate this complex landscape?
Reassess Global Supply Chains
One of the most immediate and necessary steps is a comprehensive review of global supply chains. Companies are evaluating where raw materials and intermediate chemicals are sourced and manufactured, and identifying high-risk nodes that could become tariff choke points. For many, this means shifting from “just-in-time” logistics to more flexible models that build in redundancy and optionality.
Key questions to ask:
- Are there alternative suppliers in low-tariff or duty-exempt countries?
- Is it time to regionalize production to mitigate long-haul trade risks?
Invest in Domestic or Nearshore Manufacturing
With rising tariffs, producing closer to end markets becomes increasingly attractive. Several companies are exploring ways to either expand domestic capabilities or nearshore operations to neighboring regions with favorable trade agreements. While capital-intensive, these moves can provide long-term insulation from global trade volatility and reduce lead times.
This shift also underscores the importance of talent acquisition in engineering, operations, and regulatory affairs—areas where demand is expected to grow as investment accelerates.
Optimize Product Portfolios
Tariffs can make some products uncompetitive overnight. That’s prompting companies to reevaluate their portfolios and identify which SKUs or product lines may need reformulation, repricing, or repositioning. In some cases, a shift to higher-margin, lower-volume specialty products may offset the cost burdens that broad commodity lines can no longer absorb.
This is also a chance to invest in R&D and innovation teams that can adapt quickly and help reposition the company in new market segments.
Leverage Trade Programs and Advocacy
Although trade barriers are increasing, mechanisms still exist for companies to seek relief. Programs like the Miscellaneous Tariff Bill (MTB), the Generalized System of Preferences (GSP), and temporary exemptions through Section 301 exclusions have been useful tools in the past—and may return to relevance if reauthorized.
Companies should maintain strong government affairs or trade compliance teams—or work closely with third-party experts—to stay ahead of these evolving opportunities.
Strengthen Financial Agility
Finally, with uncertainty becoming the norm, maintaining financial flexibility is essential. This means building tariff surcharges into contracts, developing pricing models that can absorb volatility, and maintaining a robust understanding of cost drivers across the value chain.
The right commercial and finance talent can make all the difference in turning cost pressure into a competitive advantage.
What This Means for Talent Strategy
Tariff challenges are operational, but the solution is increasingly human. Companies are looking for professionals who can bring resilience to the supply chain, innovation to product development, and agility to commercial strategy. Whether it’s a procurement leader who can negotiate new global deals or a plant manager ready to oversee a reshoring project, talent is now a frontline response to geopolitical risk.
As specialty chemical recruiters, we’re helping clients identify and attract exactly this kind of strategic, forward-thinking talent. The right hires today can future-proof your business for whatever the next policy wave brings.
Are you looking for top talent in the Specialty Chemical, Advanced Materials, or Animal Health industry?
Contact us to discuss how we can bring top leadership talent to your team. Boaz Partners is a premier executive search firm focused on the direct recruitment of executives and professionals for specialty chemicals, advanced materials, and animal health spaces. We are your partner, and our focus is on custom recruiting solutions. Follow the link to learn more about how our specialty chemical recruiters can help you.