How Tariffs Impact Manufacturing Security

Shifts in trade policy have emerged as a surprisingly significant factor in the cybersecurity landscape. While tariffs are typically viewed through a political or economic lens, they create ripple effects that impact the security postures of manufacturing organizations — which means cybersecurity teams must understand how they reshape their risk environment.

The Security Gaps Created When Adapting to Tariffs

Manufacturers don’t have much of a choice when tariffs threaten to reshape how they work. In an attempt to keep the supply chain moving, they typically react in three primary ways — each of which having significant security implications.

Streamlining Processes

When facing increased costs from tariffs, many manufacturers rethink their approach to production and administration. This sounds great on paper, but certain initiatives can have devastating side effects on security:

• Consolidating IT systems without a proper security review
• Postponing planned security upgrades or projects
• Engaging in “shadow IT” as departments seek cost-saving workarounds

Reducing the Workforce

Cost pressures frequently lead to workforce reductions. Beyond the obvious impacts on operations, security risks emerge from:

• A loss of institutional knowledge surrounding security procedures
• Hasty offboarding that fails to properly revoke all access credentials
• Increased workloads on remaining staff, leading to security shortcuts

To make matters worse, organizations that experience workforce reductions face 21% higher costs when security incidents occur — largely due to slower detection and response times.

Shifting Suppliers

In the wake of tariffs that make importing from certain countries entirely cost-prohibitive, many organizations are rapidly shifting to alternative suppliers. As they do, they risk:

• Onboarding new vendors without complete security vetting
• Integrating with unfamiliar systems and processes
• Exposing themselves to new geographic regions with different threat landscapes
• Developing relationships with suppliers that have less mature security programs

In fact, rapid supply chain restructuring ranks among the top five contributors to increased vulnerability in manufacturing sectors.

The Added Challenge of New Documentation Requirements

While the impacts on cost and supply chain management are well known, what many people forget is that these shifts in trade policy are accompanied by new requirements around documenting the origin, movement, and classification of goods — many of which introduce new risk to your organization.

Rules of Origin Documentation

Manufacturers must maintain detailed records proving where components originate, requiring the collecting and storing of sensitive supply chain data that could reveal competitive intelligence if compromised.

Documentation Traceability

It’s now necessary to maintain complete audit trails showing the chain of custody for materials and components — creating the need for immutable, tamper-proof documentation that can withstand both regulatory scrutiny and potential legal challenges.

Classification Verification

Proper tariff classification requires extensive documentation that may contain sensitive business intelligence. Misclassifications can trigger audits or retroactive duties, and the data submitted during verification must be protected from tampering and unauthorized access.

Adapting TPRM for Tariff-Driven Changes

As tariffs reshape the supplier ecosystem, your TPRM strategy must adapt accordingly. Here are four critical areas where updates are necessary.

Continuous Monitoring

Annual or even quarterly assessments aren’t enough to keep you aware of critical security changes that arise when suppliers quickly adapt to trade restrictions. Assessments are still important, but you must supplement them with continuous monitoring tools that provide real-time visibility into key business changes and technical vulnerabilities.

Documentation Requirements

TPRM programs must expand their documentation standards to encompass both traditional security requirements and new trade compliance demands. This includes developing standardized formats for collecting and verifying:

• Certificates of origin for products and components
• Supply chain maps that document both security controls and product provenance
• Shipping and customs documentation with appropriate security controls

These expanded requirements should be incorporated into vendor contracts, assessment questionnaires, and continuous monitoring programs.

Business Continuity Planning

Security teams must develop contingency plans for supplier disruption due to tariffs or retaliatory measures. This should include:

• Pre-qualifying backup suppliers from different geographic regions
• Developing security processes for emergency supplier onboarding
• Ensuring business-critical systems can withstand a lack of third-party dependencies during transition periods

Adapting to Tariffs Without Compromising Security

As trade policies continue to evolve, manufacturers that build adaptable security programs capable of responding to changing supplier landscapes will gain a competitive advantage through sheer resilience.

ProcessBolt helps you meet these challenges with a scalable TPRM solution that streamlines vendor assessments and monitors third-party risks in real time — all while maintaining compliance with both cybersecurity and trade regulations.