2. Leverage advanced technologies to enhance compliance and efficiency
The complexity of global trade strains manual processes. Leading organizations adopt automation, artificial intelligence (AI) and analytics to handle escalating volumes and compliance details.
Teams must know how to use these tools. "A lot of those tools are only as good as the people deploying them," Branson explains. "If people don't know how to use them, you won't get the benefits." Training and data quality become indispensable, he says, while inconsistent or poor data undermines AI-driven insights.
Technology alone is not the solution; it must align with specific needs and clear business cases. "When transforming trade functions, it's about people, process and technology,” says Shenshen Lin, Partner, Global Trade at Ernst & Young LLP. “Technology isn't an all-purpose solution – define the problem and match it with the right approach. Trade function leaders and teams should challenge themselves: what aspects of their trade obligations can technology address? How can synergy effects with broader enterprise transformations be achieved? When correctly implemented, technology frees professionals from repetitive tasks – such as restricted-party screening or customs documentation – and allows them to focus on tasks that provide more value such as modeling, risk assessment and strategic analysis.
3. Navigate complex regulatory changes proactively
The assumption of stable tariff regimes no longer applies. World events can alter trade policies, duties and regulations with little notice.
Tax leaders cannot wait for changes before they react; they need proactive approaches to anticipate disruptions. This approach includes horizon scanning, scenario planning and cross-functional collaboration to gauge how new rules or tariffs affect profitability. "Sanctions and new tariffs can happen overnight. It's critical to act with precision as regulations evolve," Lin adds.
Organizations must also tailor responses to each situation. By maintaining visibility into supply chains and engaging policymakers, they can adapt quickly when elections or geopolitical shifts alter the trade environment.
4. Incorporate sustainability and ESG factors into tax analysis
“Sustainability now plays a central role in trade and tax decisions. ESG-related regulations, such as the EU's Carbon Border Adjustment Mechanism (CBAM), demand unprecedented supply chain transparency. That complexity will also be a significant driver of future trade," Scholten says.
Collecting emissions data from suppliers, sometimes in regions without clear environmental reporting standards, requires well-coordinated collaboration. "If you don't have that tax and trade linkage, it becomes much harder," Brown says.
By merging ESG and tax considerations, companies can gain incentives for green initiatives, bolster reputations and prepare for evolving regulations. Cross-functional teamwork ensures that tax leaders secure the data they need and that trade teams understand the cost implications of sustainable sourcing.
5. Address talent gaps with focused tax and trade expertise
Global trade complexity and new ESG requirements have created a talent shortage. "The complexity of global trade, compounded by sustainability, has created a talent gap in the market," Scholten says. “Few formal programs train professionals in both compliance and strategic considerations.”
Companies should define whether their trade function should focus on strategic, tactical or operational tasks and then recruit or train accordingly. Rotations and cross-training foster multidisciplinary teams that understand tariffs, supply chains, valuation and ESG requirements. While co-sourcing and outsourcing some services with outside vendors can fill immediate gaps, long-term development of internal capabilities is essential.
6. Protect supply chains profitability margins
Supply chain decisions profoundly affect tax exposure and profitability. High tariffs can wipe out margins, forcing companies to rethink sourcing and production strategies. "If you've got a 10% or a 25% tariff, it undermines the profitability of supply chains," Branson says.
Scenario planning and analytics help organizations determine whether relocating production or using free trade agreements lowers costs. "It's not just about cheap materials. Consider the total landed cost – tariffs and other charges might mean the cheapest goods to manufacture aren't actually the cheapest to buy," Lin says. Early trade involvement facilitates efficiency and compliance.
Strong collaboration between tax leaders and supply chain teams allows organizations to adapt faster to tariff changes or carbon taxes. Ongoing configuration decisions and scenario analyses let companies remain agile and capture tax-efficient outcomes.
7. Outsource tactical trade activities for strategic focus
Not every trade task requires in-house knowledge. Routine customs filings, restricted-party screenings and classification duties take time away from strategic work. Outsourcing these low-risk activities helps internal teams concentrate on more complex challenges.
Outsourcing often combines with technology for flexibility and scalability. It ensures that in-house experts have time to react when geopolitical events or new sustainability rules demand immediate strategic responses. "When sanctions appear overnight, you can't hire 30 skilled people instantly. Outside providers can respond fast," Lin says.
