Key takeaways:
- Treat tariffs as a customer issue first: Don’t just focus on internal cost implications — proactively communicate with customers to address how tariffs impact their operations. Transparency builds trust and protects long-term relationships.
- Simplify the complex with “no-regret” moves: Break down uncertain tariff scenarios into smaller, risk-tolerant decisions that deliver clear value now, regardless of how policies evolve.
- Focus scenario planning on what matters most: Avoid overcomplicating models — develop a few realistic scenarios your team can fully understand and act on. Simplicity fuels agility and faster, smarter responses.
As part of our ongoing series to help manufacturing and supply chain leaders navigate tariff and trade policy turmoil, we facilitated a discussion with Peter Gibbons, Group President of Enterprise Operations at 3M.
This conversation brought together more than 50 senior leaders, and Peter shared candid insights and advice to help leaders navigate this unprecedented moment.
In the discussion, Peter offered practical steps to guide decision-making amidst current disruptions, highlighting recent examples from the past to reassure leaders of their capacity to overcome significant challenges.
Below are key takeaways from this candid conversation:
1. Tariffs Are a Customer Problem, Not Just a Cost Problem
It’s natural to view tariffs through the lens of increased internal costs, but Peter encouraged a broader perspective. He emphasized the significant impact tariffs have on customer experience and satisfaction, noting that rapid and transparent responses are essential.
“Customers across the whole economy are thinking, ‘What does this do to me? How do I now run my business?'” Peter said.
Our takeaway: Companies that prioritize proactive communication and customer-focused solutions in response to tariffs will maintain trust and competitive advantage.
Customers across the whole economy are thinking, ‘What does this do to me? How do I now run my business?
Peter Gibbons, 3M
2. Keep Perspective: This Too is Manageable
Peter offered a reassuring reminder from recent history: despite the unprecedented disruption of COVID, supply chains ultimately proved resilient.
As he put it, “We blew up 70 years of supply chain development in 70 days.”
He urged leaders to maintain perspective, avoid panic, and methodically approach the current tariff challenges by clearly understanding available responses.
Our takeaway: Supply chain leaders who systematically approach tariff volatility, carefully evaluating scenarios rather than reacting impulsively, are positioned to effectively navigate disruption and emerge stronger on the other side.
3. Break Tariff Uncertainty into Manageable, “No-Regret” Decisions
Peter acknowledged the profound challenge of decision-making amid uncertain tariff durations, but he offered clear guidance.
“Set boundaries — worst case, best case — and look at what’s powerful to you, then make the best judgment you can,” he noted.
He also advised leaders to break complex tariff scenarios into smaller, manageable decisions, focusing on moves they won’t regret regardless of how the situation unfolds.
Our takeaway: In uncertain times, prioritizing low-risk, high-reward, or flexible decisions that deliver immediate clarity and benefit can help leaders continue to make progress.
Set boundaries — worst case, best case — and look at what’s powerful to you, then make the best judgment you can.
Peter Gibbons, 3M
4. Scenario Planning is Essential, But Keep it Practical and Focused
While acknowledging the importance of shorter planning cycles and scenario modeling, Peter warned against overcomplicating this approach.
“Don’t get obsessed with it,” Peter advised. “Don’t try to scenario plan everything, because you can’t.”
He recommended prioritizing fewer, clearly defined scenarios that teams fully understand and can confidently communicate.
Our takeaway: Effective scenario planning isn’t about exhaustive modeling—it’s about focusing on meaningful, understandable scenarios that empower quick and confident decisions.
Navigating tariff uncertainty requires clarity, practicality, and decisive leadership.
As Peter emphasized, leaders who remain focused, methodical, and customer-oriented can not only withstand current disruptions but also position their organizations for greater resilience and success.
To see part 1 of this series with Sean Trainor at HP, click here.
