Why Tariffs and Trade Disruption Are Also a Cybersecurity Problem

Business leaders are no strangers to disruption. But today’s challenges are uniquely intertwined: trade volatility, shifting supplier networks, and escalating cybersecurity threats are no longer separate issues. They’re converging—and fast.

Yet we are seeing companies treating tariffs and cyber as parallel challenges when they’re actually related.

Discover three often-overlooked risks in manufacturing's trade strategy—and how to address them effectively.

1. Trade policy volatility is expanding the attack surface

The Financial Times reported how U.S. trade actions are forcing manufacturers into reactive mode—making frequent quick pivots to absorb new tariffs. While that’s a smart move operationally, it’s creating unintentional openings for cyber attackers.

New trade restrictions are giving nation-state actors fresh incentives to target companies—especially manufacturers—for intellectual property theft. This is a shift away from broad ransomware attacks toward focused IP theft and operational disruption. Attackers also know they’re more successful when companies are distracted or going through significant change, as they are now.

According to West Monroe’s Q1 2025 Supply Chain Poll, 23% of manufacturing leaders ranked cybersecurity as their top supply chain concern—higher than tariffs (20%) or geopolitical tensions (16%). That’s no accident. As manufacturers respond to fast-changing rules, their exposure is growing.

2. Supplier shifts are creating hidden risks

When trade policy changes or tariffs spike, supplier changes may follow. But every new vendor or reshuffled partner relationship introduces new risk—especially when cyber protocols aren’t vetted with the same level of detail.

Plus, these transitions often happen under pressure—without time for proper due diligence. That makes vendor governance not just a procurement issue but a security one.

For example:

• New suppliers may not be held to the same cybersecurity standards as legacy partners if the process is rushed to meet deadlines or price incentives.
• Tier 2 vendors promoted into critical roles may lack adequate controls.
• New communication channels open opportunities for phishing, especially via impersonation, to slip through unnoticed.

3. Cost-cutting could be weakening your defenses

Despite growing concern, many companies are under-investing in cybersecurity. Cost containment driven by trade uncertainty may mean cyber budgets are among the first to be cut—especially in manufacturing, where maturity is already lower than in other sectors.

It’s a risky trade-off. And with attacks growing more sophisticated, delayed investment is no longer a neutral choice—it actively increases the organization’s exposure.

Contributors: Christina Powers, Jeremy Tancredi, Chuck Kirchner