Tariffs: What You Need to Know Now

JUNE 11, 2025

At USI Insurance Services, we recognize that today’s global trade environment — shaped by shifting tariffs and regulatory changes — can create uncertainty for businesses. Whether you're managing rising costs, adapting to supply chain disruptions, or reassessing your insurance coverage, USI is here to help. Our team delivers proactive, data-driven strategies that align with your evolving risk profile, ensuring your insurance program keeps pace with change.

Recent federal court rulings have struck down several of the Trump administration’s tariffs, including those on dozens of countries and specific sectors like Chinese imports and fentanyl-related goods. While some tariffs have been reinstated pending appeal, the legal and economic landscape remains fluid. This uncertainty underscores the importance of proactive risk management and insurance strategies.

Four Tariff-Related Challenges and Solutions

1. Rising Replacement Costs for Property and Equipment

Solution: Reassess property valuations and adjust insurance limits. Tariffs are increasing the costs of raw materials, which directly impact the replacement values of buildings, equipment, and personal property. In addition to higher prices, material shortages and shipping delays are extending rebuild timelines following a loss. These factors can significantly affect your recovery process. USI helps clients reassess property valuations and adjust insurance limits to reflect current market conditions and provide adequate protection.

2. New Exposures From Supply Chain Realignment

Solution: Risk-aligned insurance strategy. As businesses shift to alternative suppliers or customers — often in regions with higher catastrophe risk — new exposures emerge. These changes may require increased limits, expanded coverages such as contingent business interruption, or updates to policy territories. USI works with clients to evaluate these evolving risks, identify sole-source dependencies, and align insurance programs with their new operational footprints.

3. Evolving Risks From Changes in Logistics

Solution: Policy adjustments for goods in transit. Changes in how and where goods are moved — whether due to new suppliers, customers, or logistics strategies — can affect your property, cargo, and stock throughput policies. USI helps you assess if your current limits are sufficient, if your policy covers new transportation routes and modes, and if aggregation of goods could exceed existing limits. We work to align your coverage with the realities of your supply chain.

4. Misaligned Business Income Values

Solution: Revisit business income (BI) coverage. Tariff-related disruptions can significantly impact revenue. If your sales have declined since your policy was bound, your BI values may be overstated — leading to unnecessary premium costs. Conversely, if certain customers now represent a larger share of revenue, your BI coverage may be insufficient. USI helps clients reassess BI values mid-term, offering opportunities for premium relief and more accurate protection.