Why Resilience, Not Reaction, Is the New Advantage in the Global Land Sector

In today’s unpredictable trade environment, procurement teams are constantly bracing for impact.

New tariffs can appear almost overnight—with sudden rate hikes or sweeping restrictions on imports from key trade partners—only to be paused, revised, or expanded weeks later. For companies managing global supply chains, these whiplash policy shifts aren’t just headlines. They’re operational shocks.

“Supply chains don’t just strain under pressure—they break under uncertain conditions. In land-based industries like agriculture, forestry, and biofuels, where margins are thin and planning cycles are long, volatility can be more damaging than any single policy change.”

I. What Are Tariffs? (The 30-Second Primer)

A tariff is a tax imposed by a government on imported goods. It’s typically used either to protect domestic industries or to pressure foreign governments during trade disputes. Tariffs are applied to goods as they cross a national border and are usually calculated as either:

• A percentage of the good’s value, or
• A fixed cost per unit

They’re a blunt instrument—but their effects are anything but simple.

II. How Tariffs Actually Work (and Who Pays Them)

A Quick Primer on HS Codes — The “DNA” of Every Shipment

Tariffs don’t apply to products in general—they apply to product classifications. And that’s where HS Codes come in.

Every product that crosses a border carries a unique identifier called a Harmonized System (HS) Code. Think of it as the global barcode for trade.

• HS Codes are 6–10 digits long
• The first 6 digits are globally standardized
• Additional digits add country-specific detail

For example:

• 1001.90 — Wheat (global code)
• 1001.90.10 — Hard red winter wheat (U.S. national code)

Tariffs, quotas, documentation requirements, and regulatory checks are all tied to these codes. Get it wrong, and you could face:

• Unexpected tariff costs
• Shipment delays
• Missed eligibility for trade agreement benefits

That’s why knowing your product’s correct HS Code—and proving it—is mission-critical.

Who Pays the Tariff?

Tariffs are paid by the importer of record—typically the manufacturer, distributor, or trading company bringing the product into the country.

“If your product crosses three tariff-imposing borders before reaching its final market, it may be taxed three times.”

While costs eventually flow downstream to consumers, procurement teams bear the immediate financial, operational, and compliance burden first. That makes tariff exposure a daily, real-world problem, not just a line item on an economic policy briefing.

From Codes to Contracts: How This Plays Out in the Real World

Understanding HS Codes is essential to navigating tariffs—but knowing the code is just the first step.

The real impact shows up when those codes are applied to high-demand, high-volume commodities, where even small changes in classification or rates can ripple through entire industries.

Let’s take a closer look at how this plays out in a product you probably touched this morning: coffee.

III. Real-World Example: When Coffee Gets Political

Coffee can’t be grown in the continental U.S., yet it's a non-negotiable part of American life. The country imports over 27 million 60-kg bags of coffee annually—much of it from Brazil, Colombia, and Vietnam.

When tariffs impose a 10–47% tax on imported beans, the impact isn't abstract. It's immediate, and it hits every café, supermarket, and supply contract in the system.

Example:

• The U.S. imported nearly $2.9 billion worth of unroasted coffee from Brazil in 2023.
• A 10% tariff on that flow would cost importers an additional $287 million.
• Starbucks alone imported roughly $1.2 billion worth of beans in a single year.

In an unstable trade environment, thorough documentation becomes currency. Tariff exemptions or reductions may be available, but only if suppliers can prove things like origin, deforestation-free status, or sustainable processing methods.

Without that proof, even a contract that looked ironclad last quarter can suddenly disappear.

Bonus Insight:

• Toilet paper is also affected. Canadian pulp has long fueled U.S. paper production. With tariffs impacting wood products, some manufacturers are pivoting to recycled content or scrambling for lower-tariff alternatives.

Procurement Feels the Impact First

For many companies in the agribusiness, manufacturing, and energy sectors, procurement controls 50–70% of total spending. That makes trade volatility a bottom-line issue.

• Plans fall apart. One policy change can derail months of work.
• Costs shift fast. Prices swing with every headline.
• Compliance gaps appear. Suppliers often can’t prove origin or meet new standards.
• Data is missing. Teams can’t answer urgent questions fast enough.

Legacy systems and static contracts weren’t built for this pace of change.

Brazil's Moment Is Now: How to Turn Global Trade Turbulence into Competitive Edge

While Brazil has not yet been the primary target of recent tariff escalations, its exporters are far from shielded.

New waves of regulatory scrutiny from the EU, China, and other major buyers are already raising the stakes. Brazilian exporters face growing pressure to prove not just product quality, but compliance with:

• Stricter deforestation-free and traceability requirements
• Rising demands for sustainability-linked documentation
• Evolving tariff risks and market access conditions

These shifts have put even the strongest supplier relationships under review.

"Global buyers are no longer asking if their suppliers are ready—they’re asking who can prove it first."

Yet for those ready to navigate this new reality, the opportunity is clear.
Global buyers are actively diversifying away from high-risk markets, opening the door for Brazilian producers to capture greater market share across agriculture, forestry, and bio-based industries.

The companies that succeed will be the ones that can manage risk and prove their readiness—with verified documentation, real-time visibility, and the agility to adapt as the rules change.

Because in today’s market, being in the right place at the right time isn’t enough.
You need to prove you belong there—shipment after shipment, deal after deal.

And that’s where Marvin helps you turn today’s uncertainty into your competitive advantage.

Turn Risk Into Advantage

Today’s trade turbulence brings both risk and reward. Global buyers are already shifting away from high-risk suppliers, opening the door for Brazilian exporters to claim new market share—if they can prove their advantage.

To win, companies need to:

• Track HS code and tariff changes before they hit margins
• Stay ahead of regulatory shifts with real-time compliance insights
• Route inventory to the most profitable markets, balancing tariffs, regulations, and sale price

This is where Marvin comes in—giving you the intelligent, AI-powered co-pilot you need to turn complexity into clarity, and risk into competitive advantage.

Win With Marvin. Stay Ahead, No Matter What Comes Next

Today’s trade turbulence brings both risk and reward. Global buyers are already shifting away from high-risk suppliers, opening the door for Brazilian exporters to claim new market share—if they can prove their advantage.

Winning teams aren’t just reacting. They’re building resilient, data-driven strategies to:

• Identify supplier risk early
• Simulate cost, compliance, and disruption scenarios in real time
• Stay audit-ready across changing regulations
• Track HS code and tariff changes before they hit margins
• Route inventory to the most profitable markets, balancing tariffs, regulations, and sale price

This is where Marvin comes in—giving you the intelligent, AI-powered co-pilot you need to turn complexity into clarity, and risk into competitive advantage.

The next tariff shift, regulatory demand, or market shock could be just around the corner. But with Marvin, you’ll be ready to navigate, adapt, and win—every time.

👉 Ready to See How Marvin Can Help Your Procurement or Sustainability Team Stay Ahead? Get a Demo

How Marvin Supports Procurement Teams and Export Teams

🧠 For Procurement Professionals:

• Simulate risk across trade, sourcing, or policy shifts
• Map exposure by supplier, geography, or compliance status
• Automate documentation for exemptions and traceability

🌱 For Brazilian Exporters:

• Prove land-use and deforestation compliance with satellite-verified data
• Stay aligned with EUDR, ISCC, and GHG Protocol
• Enable premium pricing with verifiable, science-backed sustainability

When the Headlines Change, Your Strategy Shouldn’t Have To

One in three procurement leaders now cites volatility as their #1 risk factor. The tariff rollercoaster is just the latest example of why agility, clarity, and foresight are critical.

You don’t need another dashboard. You need a system that helps you think ahead.

That’s Marvin.

👉 Ready to See How Marvin Can Help Your Procurement or Sustainability Team Stay Ahead? Get a Demo

Sources

• U.S. Tariffs Announcement (2025), BBC News. “Trump tariffs come into force amid global backlash.” Link
• World Trade Organization (WTO). “World Trade Statistical Review 2023.” Link
• Deloitte. “2023 Global Chief Procurement Officer Survey.” Link
• Brazilian Ministry of Agriculture. “Agrostat Brazil Export Data (2023).” Link
• McKinsey & Company. “The strategic potential of procurement in a volatile world.” (2022). Link
• Gartner. “2023 Supply Chain Executive Report.” Link

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