Supply Chain

To help our clients understand the potential consequences of tariffs on their operations, RapidRatings conducted a series of stress tests based on our knowledge of global supply chain structures and country specific tariff rates. The following analysis assumed that companies increased their prices to cover half the cost of tariffs.

This issue's key takeaways: Three-out-of-four Fortune 1000 companies’ suppliers are private companies.Across industries, key supplier sectors have elevated risk levels which are visible in their financial health.Businesses that are low risk can handle unexpected stress to their supply chain better than high risk businesses. Visibility into the financial health of companies, especially private ones, is crucial to managing risk and avoiding damaging outcomes. Identifying healthy suppliers that can grow with their customers is key to supply chain resiliency.

At RapidRatings, we work with thousands of Supply Chain and Third-Party Risk professionals who wrestle with impending tariffs.

President-elect Trump's promise to raise tariffs would hurt apparel and durable goods manufacturers and retailers, in particular, says Bea Chiem, retail director at S&P Global Ratings.