LATAM Airlines CFO: Expects more changes to U.S. tariff policies; strategy is to negotiate with suppliers to mitigate impacts from final tariff position

LATAM Airlines CFO: Expects more changes to U.S. tariff policies; strategy is to negotiate with suppliers to mitigate impacts from final tariff position

LATAM Airlines' Chief Financial Officer (CFO) has expressed expectations of further changes to U.S. tariff policies, prompting the airline to adopt a proactive strategy. The CFO stated that the company is focusing on negotiating with suppliers to mitigate potential impacts from the final tariff positions.

The CFO's remarks come amidst ongoing trade negotiations between South Korea and the U.S., which have agreed to pursue a comprehensive tariff-liberalization package by July 8, 2025. This agreement, known as the "July Package," aims to dismantle both reciprocal and sector-specific tariffs, particularly in the areas of automobiles, semiconductors, shipbuilding, and liquefied natural gas (LNG) [2].

LATAM Airlines, like many other companies, is closely monitoring the evolving trade landscape. The airline's sourcing strategies are being adjusted to navigate the complexities introduced by tariffs. This includes exploring closer and more local suppliers, diversifying the supplier base, and renegotiating prices with existing suppliers to offset the financial impact of tariffs [1].

The CFO emphasized the importance of data-driven decision-making in managing these changes. By leveraging analytics and automation, LATAM Airlines aims to generate insights quickly and accurately, enabling smarter and faster sourcing decisions.

References:
[1] https://www.alteryx.com/blog/the-impact-of-tariffs-on-supplier-management-and-sourcing-strategies
[2] https://www.kedglobal.com/business-politics/newsView/ked202504250001