Citi says tariff disruption and regional trade shifts are reshaping supply chain finance

Citi has warned that tariff pressure, geopolitical fragmentation and regional supply chain shifts are continuing to reshape global supply chain finance markets.

In its latest supply chain financing outlook, the bank said companies are increasingly reassessing supplier networks, liquidity management and financing structures as global trade corridors continue evolving.

The report highlights how businesses are placing greater focus on supply chain resilience after several years of disruption linked to sanctions, geopolitical conflict, higher interest rates and trade policy uncertainty.

Citi said supply chain finance is becoming increasingly important as companies look to support supplier liquidity while maintaining operational stability across more fragmented global trade environments.

The report also noted that SMEs continue to face significant barriers accessing trade finance, despite growing demand for working capital solutions linked to open account trade.

Banks and finance providers are increasingly investing in automation, digital trade documentation and AI-driven risk monitoring to improve visibility across supply chains and reduce manual processing.

Industry participants continue to expect further growth in supply chain finance demand as businesses diversify sourcing strategies and seek more flexible funding structures capable of adapting to changing trade conditions.