With 25% tariffs on Mexican and Canadian imports reshaping the cost structure of consumer packaged goods supply chains, JT Logistics CEO Jamie Cord outlines the strategies CPG brands must act on now — before disruption becomes a crisis.
Des Moines, Iowa — The tariff environment of 2025 has fundamentally changed the math for CPG brands that source from Mexico and Canada. With 25% duties on imported goods taking effect, companies that waited to build resilience into their supply chains are now paying for that delay — in duties, delays, and lost market responsiveness.
JT Logistics, which operates over 5 million square feet of warehouse space across 18 U.S. locations, is helping CPG brands respond to this environment with a combination of strategic warehousing, flexible fulfillment capacity, and data-driven supply chain planning.
The Challenge: Reactive Supply Chains Can't Survive Tariff Disruption
"Our goal is to ensure CPG brands are not merely reacting to disruptions," said Jamie Cord, President and CEO of JT Logistics. "We want them proactively building resilience into their supply chains before the next shock hits."
The brands most exposed to tariff risk are those that:
- Source finished goods or key inputs from Mexico or Canada
- Operate with lean, just-in-time inventory models that leave no buffer
- Have single-source supplier relationships with no alternatives in place
- Rely on coastal distribution hubs without a central U.S. presence
The JT Logistics Approach: Proactive Resilience
JT Logistics works with CPG brands to implement supply chain strategies that reduce tariff exposure and build lasting flexibility. Key recommendations include:
1. Diversified Warehouse Networks
Spreading inventory across multiple regional fulfillment points reduces single-point-of-failure risk and puts product closer to end consumers — reducing transportation costs even as duties add cost elsewhere in the chain.
2. Strategic Inventory Positioning
Moving inventory closer to demand before tariff events — rather than after — locks in lower duty costs and ensures product availability during transition periods when competitors may face stockouts.
3. U.S. Customs-Bonded Warehousing
For goods already in-transit or in port, U.S. Customs-bonded storage at JT Logistics' Iowa facilities allows importers to defer duty payments until goods are actually sold into U.S. commerce — preserving cash flow in a high-tariff environment.
4. Expanded Supplier Networks
Working with procurement teams to identify domestic or non-tariffed alternative suppliers for key inputs reduces structural tariff exposure over the medium term.
5. Scenario-Based Planning & Predictive Modeling
"Navigating the complexities of tariff-driven disruptions requires forward-thinking strategies," said Cord. "By leveraging predictive modeling, diversifying warehouse networks, and strategically positioning inventory, JT Logistics is empowering CPG brands to remain adaptive."
6. Multimodal Transportation
Shifting freight between rail, truck, and intermodal options based on cost and timing allows CPG brands to offset some of the duty cost increase through transportation optimization.
JT Logistics at Scale
At the time of this publication, JT Logistics operated 5+ million square feet across 18 U.S. locations, with warehousing capabilities that include food-grade certified facilities, U.S. Customs-bonded warehouses, temperature-controlled storage, and full cross-docking and transloading services.
"The CPG brands that will win in 2025 are the ones that treat their supply chains as a strategic asset — not a cost center to be minimized. Resilience isn't free, but neither is disruption." — Jamie Cord, President & CEO, JT Logistics
Build a Resilient CPG Supply Chain with JT Logistics
Our team of supply chain specialists is ready to help you navigate tariff exposure, optimize inventory positioning, and build the flexibility your brand needs to thrive in 2025 and beyond.
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