Flexport, a B2B freight technology platform, uses AI to ensure that brands can adjust their shipping strategies in real time, responding to new tariffs and regulations. “AI allows us to parse and interpret rules at scale, ensuring businesses stay ahead of compliance shifts,” says Alex Nederlof, director of engineering at Flexport.
Navigating customs compliance is a high-stakes game for fashion brands moving products across borders. One misfiled product code or missing document can trigger unexpected tariffs, delays, or even seized shipments. AI is rewriting the rulebook, automating key processes to keep goods moving and costs in check, says Nederlof.
One of the biggest friction points is document accuracy. AI-powered systems scan invoices, customs declarations, and shipping documents, extracting critical details — product descriptions, harmonised system (HS) codes, country of origin — and cross-checking them for errors. The payoff is fewer costly misclassifications and reduced risk of overpaying tariffs or fines.
Correct classification is another advantage. By analysing product descriptions, historical data and even images, AI can validate HS codes and flag potential disputes before they become expensive problems. Brands often don’t realise they’re misclassifying items until they’re hit with unexpected duties or penalties, says Nederlof, and AI helps eliminate that risk upfront.
Tariff-specific tools
The future of AI in fashion trade goes beyond merely responding to tariffs — it is about fundamentally reshaping global trade strategies. Amy Morgan, VP of trade compliance at Altana, an AI-based company that maps and analyses global supply chains, explains how tools like the company’s Tariff Scenario Planner are enabling brands to model the impacts of tariffs on individual products. “By simulating ‘what-if’ scenarios, companies can quickly identify alternative sourcing opportunities and adapt their strategies accordingly.”
Pull Logic is also developing a Tariff Evaluator Agent with assistance from select manufacturing partners, designed to help brands simulate tariff impacts, test pricing strategies and uncover cost-saving opportunities, says co-founder and COO Taresh Grover. The tool models tactics like dynamic or tiered pricing to offset tariff-driven cost increases — helping brands protect margins without alienating customers. Once live, it will offer apparel brands a data-driven approach to navigating trade volatility.
As AI continues to evolve, it will also support regulators by identifying non-compliance risks, improving policy enforcement, and creating more dynamic trade strategies. “AI will help businesses and regulators navigate the complexities of global trade with greater agility and informed confidence,” Morgan adds.
Ultimately, AI is a powerful ally in navigating today’s complex supply chain landscape, but its true value lies in how brands leverage it. Clean, accurate data is the foundation for optimising AI’s potential, yet it’s the blend of AI insights and strategic, human decision-making that will drive meaningful results, says Paul Magel, president of the supply chain technology division at retail software provider CGS. For brands looking to thrive in this dynamic environment, the key lies in using AI to complement, not replace, a well-rounded approach to supply chain management.
Comments, questions or feedback? Email us at feedback@voguebusiness.com.
More from this author:
De minimis disrupted: The fallout for fashion
How fashion and beauty are preparing for triple-threat tariffs
What Trump’s executive orders on climate mean for fashion
link