GlossaryEN1 min readUpdated: Jun 13, 2026
Trade war risk
Trade war risk emerges when countries restrict bilateral trade through tariffs, export controls, or sanctions.
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Source: https://www.mckinsey.com/business-functions/operations/our-insights/what-a-trade-war-means-for-supply-chains
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Definition & Explanation
Trade war risk emerges when countries restrict bilateral trade through tariffs, export controls, or sanctions. Within supply chains and logistics operations, such measures trigger sudden cost surges, commodity shortages, and extended lead times. Freight forwarders and shippers face unpredictable route adjustments, supplier diversification costs, and price volatility that undermine supply chain predictability and profitability.
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