By Beth Harvey, Director of Channel Success, ReQlogic Few topics have generated as much conversation in procurement circles this summer as tariffs. By early July 2025 the average effective tariff rate had climbed to 17.6%, the highest since 19341. Those duties are not just numbers on a news ticker; they translate into a 1.7% jump in consumer prices2. They also compress margins for manufacturers and distributors, many of whom are our customers and partners. With everyday items becoming noticeably more expensive, procurement leaders cannot afford a “wait and see” approach. At ReQlogic we’ve always prided ourselves on being dependable. Our mission is to power efficiency and control. With over twenty-five years of experience serving organizations that run on Microsoft Dynamics, we know planning, transparency and adaptability are nonnegotiable. The new reality of 2025 tariffs This year’s tariff landscape is the most volatile many of us have ever seen. Over the past few months the administration has oscillated between tariff holidays and sharp increases: some orders reset reciprocal tariffs for most partners to 10% while simultaneously piling triple digit duties on select countries3. Other directives lifted duties on steel and aluminum to 50% ad valorem4 or eliminated the de minimis exemption on small shipments5. Market analysts note these policies could push the effective tariff rate from an already record high level to nearly 20%6. For procurement teams, that means every purchase order could carry a different duty depending on when it is placed and which country supplies the goods. Economists warn that such unpredictable charges are weighing on growth. Yale’s Budget Lab estimates that 2025 tariffs are cutting real GDP growth by 0.7 percentage points and raising unemployment7 —while offering protection to some industries at the expense of others8. In this environment, procurement isn’t just about finding the lowest unit price; it’s about preserving margins, ensuring compliance and maintaining agility. Why procurement automation matters more than ever For many years ReQlogic has championed the shift from manual requisition processes to modern, automated workflows. Our belief is rooted in firsthand experience: spreadsheets break down when complexity grows. Tariffs magnify that complexity: Stay agile with suppliers. Unpredictable tariffs require rapid pivots. Automated workflows let you quickly switch to alternative vendors, update product catalogs via vendor punchouts and trigger approvals that route through the right stakeholders. Procurement becomes a dynamic capability rather than a static process. Control landed costs. Duties interact with freight and customs fees. When de minimis exemptions are revoked9, small shipments trigger extra costs. Automated systems help teams consolidate orders, choose the right shipping method and coordinate with logistics providers to keep landed costs under control. Avoid unnecessary IT overhead. Cloud based procurement removes the need for on premise servers and expensive ERP licenses for occasional users10. Automatic updates ensure you’re always using the latest tariff rules without draining IT budgets. Simplify compliance. Ever-changing tariff codes and certificates of origin make manual compliance risky. Automated approval routing ensures every purchase is checked against the latest rules and that documentation is ready for audits. Beyond these concrete benefits, automation also fosters collaboration. When data lives in one system rather than in scattered emails and spreadsheets, finance, procurement and operations teams can work from the same source of truth. Visibility promotes trust and speeds up approvals, freeing staff to focus on strategic sourcing and supplier development instead of chasing paperwork. In a year when everyone is watching the bottom line, that cultural shift can be just as valuable as any direct cost savings. A call to action for procurement leaders Doing nothing and hoping politics will roll back these duties is a risk. Even if tariffs retreat, supply chains will continue to face geopolitical swings—from triple digit duties to baseline rates of 15–50%11. The best way to protect margins is to invest in resilience. Automation isn’t just about efficiency; it is a strategic shield against volatility. At ReQlogic we embody that philosophy. Our platform pairs configurable approval workflows with seamless Microsoft Dynamics integration and a licensing model that keeps costs low. There will be more headlines about baselines, exemptions and retaliation. Some will offer relief; others will create new costs. Companies that embrace procurement automation will be ready for either outcome. Have questions? Reach out to us here. Tariffs may be unpredictable, but your response doesn’t have to be. References: 1 2 The Budget Lab 7 8 The Budget Lab 3 UPS 4 UPS 5 9 UPS 10 UPS 6 AInvest 11 CEO NA Table of Contents
