The ongoing trade wars and inconsistent tariff announcements from the US, Europe, and China have created chaos in financial markets and global trade networks.
Many companies feel the consequences of this new economic reality, from delayed transactions to increased costs of goods and bilateral trade to growing trade compliance demands.
The World Trade Organization recently adjusted its trade projections for 2025 accordingly. The global trade body said there will be a substantial decline in merchandise trade and a minor decline in services trade, mainly driven by North America’s new projections of a 12.6% decline in exports and 9.6% in imports in 2025.
The new trade environment provides fertile ground for tech companies to develop new AI offerings that help businesses with their awareness, monitoring, calculation, compliance, risk management, and customs paperwork and payments.
The offerings are diverse. Several AI companies focus on automating the classification of goods and related tariff calculations while improving trade compliance. This complex process has always been one of the most challenging parts of international trade. For example, Avalara, a US software company, developed its Avalara Automated Tariff Code Classification, an AI-driven system designed to simplify and speed up the tariff classification process.
Conversely, governments are using new AI technologies to help them monitor and manage customs and tariffs better. ScanTech AI Systems, a Georgia-based American tech company, has developed its latest technology, CustomsTrace AI. It helps state agencies identify and verify tariff-sensitive goods at national borders and prevent the unauthorized or illegal importation of restricted items.
While trade wars force companies to adjust their supply chains, inventory management, and the locations of the manufacturing facilities to optimize free trade and shipping costs, it has to be supported by sophisticated data management systems. Thus, other companies develop AI-powered offerings for the shipping and customs processes to address labor and shipping concerns. Avathon, a California-based industrial AI company, introduced an AI software that provides risk management solutions for the entire process.
As the trade wars global discussions cool off to help financial markets recover, AI tech companies must maintain a sustainable business model to continue their growth regardless of market conditions.
