Tariff decisions swayed by ideology, study finds

KUALA LUMPUR, 24 JULY 2026 —

KUALA LUMPUR — A study published in Transportation Journal reveals that supply chain professionals' evaluations of tariff-related sourcing plans are significantly shaped by their political ideology and perceived alignment with decision-makers, even when presented with identical operational information.

Researchers Scott DuHadway of Portland State University and Craig Carter of Arizona State University conducted a controlled experiment involving 216 supply chain professionals. The findings indicate that political context, rather than purely technical analysis, influences judgments on sourcing strategies tied to tariffs.

"When evaluating identical sourcing strategies tied to tariffs, we found that participants' political ideology and their perceptions of a manager's ideology significantly shaped both trust in leadership and support for the operational plan," DuHadway said.

The study highlights how politically charged macroeconomic issues, such as tariffs, can unintentionally activate bias, even when managers present information neutrally. This phenomenon is particularly relevant as organizations navigate increasingly volatile global trade environments, where trade policies and economic nationalism influence sourcing decisions.

The research underscores the challenge for Malaysian businesses, which often operate in politically sensitive supply chain environments. Companies in sectors reliant on international trade—such as manufacturing, electronics, and commodities—may face decisions where ideological biases could impact operational evaluations.

For Malaysian manufacturers, particularly those in export-oriented industries like electronics and palm oil, the study suggests that internal evaluations of tariff-related sourcing strategies may be influenced by the political leanings of decision-makers. This could affect strategic choices, such as shifting suppliers or adjusting production locations, based on perceived ideological alignment rather than purely economic or logistical considerations.

The outlook for Malaysian businesses remains tied to global trade policies, with tariffs and trade restrictions continuing to shape supply chain decisions. The study’s findings imply that companies may need to implement safeguards—such as neutral third-party evaluations or structured decision-making frameworks—to mitigate the influence of political bias in critical operational choices.

The research was published in Transportation Journal in 2026.