In the first quarter of 2025, cyber security tops the list of worries for supply chain managers. At the same time, uncertainty over Donald Trump’s tariff policies has thrown supply chains into disarray, affecting operations not just in the U.S., but globally. These issues are deeply linked.
A recent report from West Monroe, a business and technology consultancy, highlights this. They found that 23% of survey participants cited cyber security as their biggest concern. However, 20% prioritized tariffs as their main issue, overtaking concerns like geopolitical tensions, material costs, and labor expenses in just a few weeks.
Most of the data was gathered in March, before Trump’s “Liberation Day” tariff announcement. Yet, many U.S. organizations were already adjusting their supply chains in response. About 58% changed their product or sourcing mix, 56% altered transportation strategies, 45% modified production schedules, 31% raised prices to cover increasing costs, and 28% adjusted their geographic reach.
Christina Powers, a cyber security partner at West Monroe, emphasized the risks tied to these hurried changes. “These adjustments aren’t quick,” she said. “And there’s a cyber risk whenever you make those changes.” The rush to recover lost revenue and adapt to new suppliers might lead to lapses in best practices.
If you start working with a new supplier—even if they were previously on your radar—they may not have undergone thorough vetting. Powers explained, “Life can get hurried when you’re changing suppliers, and diligence might suffer. This means less visibility into their potential risks.” Plus, if you’re not dealing with familiar contacts, you’re at a higher risk for impersonation attacks aimed at stealing data or money.
With tariffs potentially driving prices up, some companies might seek unconventional ways to offset those costs rather than simply raising prices. Unfortunately, this might lead to cuts in IT and cyber security budgets. Powers noted that cyber security often gets labeled as a cost center—focused on preserving value rather than creating it. “There’s a real threat here,” she said.
The connection between cyber security and tariffs goes even deeper. Powers pointed out that a volatile market can encourage bad actors to exploit weaknesses in organizations. Historical allies to the U.S. may suddenly adopt a different stance, heightening the risk of espionage aimed at stealing trade secrets and intellectual property. She mentioned that some Chinese manufacturers target luxury brands to get insights on production processes.
For leaders in cyber security, the critical takeaway during this period of uncertainty is to maintain a sharp focus on the integrity of their supply chain. “Now’s the time to be vigilant,” Powers advised. “This is when you need to step up your scrutiny to safeguard your operations.”