Rewriting the Rules: Global Trade, Sustainability, and Supply Chain Research

Recent global trade policy shifts and escalating sustainability concerns are reshaping the landscape for businesses worldwide, raising urgent questions for supply chain management professionals and researchers. On June 10, a webinar co-organized by the Center for Responsible Supply Chain Management at Arizona State University’s W. P. Carey School of Business and the Institute for Environmental and Social Sustainability at Indiana University’s Kelley School of Business, brought together leading experts to discuss these vital topics. More than 300 participants from 35 countries registered for the event.

Cori Masters, a Senior Director and High-Tech Supply Chain Analyst at Gartner, kicked off the discussion by outlining current sustainability macro trends and the complex tariff landscape. She detailed the “Four B’s” driving U.S. tariffs—balancing trade, bringing back manufacturing, bolstering US borders, and building revenue—and emphasized the volatile nature of global trade policies, necessitating continuous scenario planning for businesses and advancing supply chain optimization.

Jan Fransoo, Professor of Operations and Logistics Management at Tilburg University, argued that the perceived “deglobalization” might primarily be a U.S. phenomenon, with global trade continuing to grow, particularly with emerging forces like India and Africa. He highlighted the inextricable link between global trade and sustainability, suggesting that increased information technology leads to greater transparency and, in turn, higher accountability pressures. Fransoo posited that we might be at a “tipping point” for sustainable supply chains.

Panos Kouvelis, Emerson Distinguished Professor at Washington University in St. Louis, reinforced the idea that tariff uncertainty could be the “new normal,” necessitating fundamental changes in supply chain contracts and financial hedging. He urged practitioners and researchers to rethink supply chain strategy not just as a sourcing portfolio but also as a product and market portfolio. Kouvelis also emphasized the booming potential of reverse logistics and circular economy, as new inventories become more expensive due to tariffs.

Bringing a new dimension to the conversation, Christopher Tang, UCLA Distinguished Professor, exposed the “covert weaponization of supply chains.” He described how actors might use supply chains for illicit activities, presenting serious risks to global security and economic integrity. This troubling reality raises an urgent question for research: how can emerging technologies such as AI, blockchain, and forensic science be most effectively leveraged to identify, track, and disrupt the movement of illicit materials across global supply chains?

The webinar underscored that global supply chains are entering an era of unprecedented complexity and uncertainty. The future demands not only traditional risk mitigation but also innovative approaches to supply chain sustainability, financing, and security, driven by advanced data and technology.

The webinar is co-hosted by Karen Donohue, a professor at ASU’s W. P. Carey School of Business, and Owen Wu, a professor at IU’s Kelley School of Business.

Find the webinar slides here.

Register for the next webinar on August 12, in which we will take a closer look at two industries that sit at the center of today’s global trade and sustainability debates: agribusiness and consumer electronics.