Intelligent QMS Brings Certainty for U.S. Manufacturers Facing Tariffs
Ongoing trade tensions and new tariffs are creating uncertainty for manufacturers across North America. Since President Trump signed a February 1 executive order imposing tariffs on Mexico, Canada, and China, manufacturers have called for policies to “mitigate the adverse effects” and stock markets have responded with sharp drops. To ease the transition, the White House has paused North American tariffs until April 2, allowing manufacturers time to adjust their supply chains. These signs all point to more turbulence ahead.
Treasury Secretary Scott Bessent has made it clear in recent interviews that the White House no longer views equities as a success metric, cautioning investors not to expect a “Trump put” intervention during this economic adjustment period. Morgan Stanley has lowered its Q4 2025 growth forecast to 1.5%, citing increased pressure from tariffs and inflation concerns, while Goldman Sachs has raised the probability of a recession in the next 12 months to 20%. These signals point to an environment of rising costs and shrinking margins, leaving manufacturers searching for strategies to maintain stability.
Tariffs, Supply Chains, and the Cost of Uncertainty
One of the biggest challenges manufacturers face is the complexity of their global supply chains. Consider polyethylene terephthalate (PET), a plastic used in everything from clothing and beverage containers to automotive components and thermoforming processes. In 2023, China was the world’s largest PET exporter ($5.24 billion), while the U.S. was the largest importer ($1.93 billion). More broadly, the three tariffed countries—China ($536.3 billion), Mexico ($454.8 billion), and Canada ($436.6 billion)—are not only the top suppliers of U.S. goods but also the largest buyers of American exports.
Tariffs disrupt these deeply integrated supply chains, creating ripple effects across the entire manufacturing sector. As of March 10, 73% of S&P 500 stocks were trading at least 10% below their 52-week highs, signaling correction territory. Market volatility continued on March 11, when the Dow dropped 450 points following the announcement of a 50% tariff on Canadian steel and aluminum—only for the policy to be walked back hours later. As material costs rise, manufacturers must seek operational efficiencies to offset these added expenses.
AI-Driven QMS Helps Manufacturers Find Compliance Efficiencies
This is where quality management software (QMS) plays a crucial role. A modern, AI-powered QMS platform helps manufacturers automate and streamline compliance processes, ensuring that products meet stringent regulatory and industry-specific requirements such as ISO 9001, 14001, 45001, and 27001.
By leveraging machine learning, an adaptable QMS system can:
✅ Document processes and record inspections—common information manufacturers must supply to satisfy regulatory compliance regulations and / or customers requirements
✅ Learn each product’s specific risk assessment, mitigation strategies, and auditing needs, flagging non-compliance issues before they escalate and compile associated reporting
✅ Streamline corrective actions, such as NCRs (non-conformance reports) and CAPAs (corrective and preventive actions)
✅ Generate country-of-origin records, which can help reduce tariff costs when sourcing from non-tariffed regions
Heather Preu, CEO of Intellect, underscores the importance of quality management in today’s manufacturing landscape:
“An AI-infused QMS platform helps quality management teams do more, faster. There’s a cost to good quality, but the cost of poor quality is even higher! Manufacturing is an exact science. When production doesn’t follow design specifications, defects happen and can escape review. The financial and reputational damage from lawsuits and bad press far outweighs any short-term cost savings from cutting corners.”
Preu also highlights how QMS solutions can protect manufacturers from costly errors:
“A highly adaptable QMS helps teams catch preventable issues before they trigger compliance red flags. Manufacturing margins are already thin, and tariffs are making raw materials even more expensive. Imagine doubling your materials and labor cost to remake 10 million intravenous drug delivery devices because manufacturing operations used non-compliant raw materials instead of polycarbonate polymers as documented in the specifications. An intelligent QMS platform helps manufacturers avoid this nightmare.”
Bringing Certainty to an Uncertain Market
With tariffs and trade policies evolving, manufacturers need certainty wherever they can find it. An AI-driven QMS platform brings order to the complexities of global supply chains, ensures regulatory compliance, and helps identify quality issues at scale—ultimately reducing the cost of poor quality.
Now, more than ever, quality leaders must take proactive steps to bring operational certainty. Investing in an adaptive QMS platform provides compliance. That serves as a foundation for finding efficiencies in an unpredictable market.
Learn more about how Intellect helps manufacturers stay agile in the face of industry challenges.
