The global trade war just hit a boiling point. On April 2, 2025, the Trump administration imposed substantial tariffs on imports from multiple countries. Just days later, China fired back with its own 34% tariff on all US goods while the EU and Canada are preparing their countermeasures. These moves caused major market drops, with the Euro Stoxx 50 falling more than 7% and the Nasdaq entering bear market territory — down more than 22% from its December high.
But while everyone's watching their stock portfolios, a hidden risk lurks behind the headlines. Your business software could become a casualty of this economic showdown. Think about it. Your company relies on software vendors who themselves depend on global supply chains now under severe strain.
What happens if your critical software provider can't deliver updates? Or worse, goes under entirely? In this post, we discuss how software escrow provides a practical solution to protect your operations during these uncertain times.
» Ease the pressure with these software resilience solutions
What makes these "Trump tariffs" particularly disruptive for the software industry is their comprehensive nature — they impact not just finished goods but also components, rare earth minerals, and even services through secondary effects.
You don't have to picture this because it's likely already happening: Your manufacturing operations rely on specialized inventory management software from a mid-sized developer with international offices. One Monday morning, you discover they've shut down operations due to financial strain from cross-border restrictions. Your system needs critical updates, but there's no one to call.
This nightmare scenario is becoming increasingly likely as:
» Find out how to navigate the risks involved in third-party dependencies
Now, you might think your business is insulated from trade war effects because you use cloud-based SaaS solutions rather than on-premise software. However, the reality is more complex. Even cloud providers depend on global supply chains that are increasingly fragmented by tariffs and trade restrictions.
Consider these often-overlooked connections that make your cloud software vulnerable to trade disruptions:
When tariffs disrupt these delicate connections, even seemingly standalone cloud solutions can experience service degradation, feature delays, or complete outages. Companies that assumed their software stack was immune to trade tensions have found themselves scrambling as previously reliable services become unstable.
US Commerce Secretary Howard Lutnick's recent statement that the administration wants to "reset global trade" signals these tariffs aren't merely negotiating tactics but potentially long-term structural changes. This makes preparation and protection even more crucial for businesses relying on software and SaaS systems.
Software escrow is your insurance policy against these global trade war risks. It works like this: a neutral third party holds your vendor's source code and all assets needed to maintain your critical software or applications. If specific trigger events occur, like your vendor going bankrupt, you get access to everything you need to keep your systems running.
Unlike traditional insurance that pays after damage occurs, escrow gives you the actual tools to prevent the damage in the first place. When the global trade war puts your software vendor at risk, an escrow agreement means:
Think of it as business continuity in a vault, activated precisely when you need it most.
Let's break down the specific ways escrow protects you during this escalating conflict:
The peace of mind alone is valuable. Plus, escrow can actually improve vendor relationships during uncertain times. By reducing risk for both parties, it creates a safer environment for ongoing business — even as trade tensions flare.
» Get an in-depth overview of Codekeeper's software escrow solutions
Many businesses are already seeing disruptions in their supply chains and technology services. To protect your software assets from these growing risks, you need a structured approach to implementing escrow protection.
Follow these five steps to secure your business operations against software interruptions related to the trade and tariffs conflict:
Start with your most business-critical systems — those you absolutely can't operate without. Most companies can implement basic escrow protection within two to three weeks, with comprehensive coverage in four to six weeks. (Codekeeper can configure full-scale software resilience escrows in under 24 hours.)
Note: If you encounter resistance from your counterpart, remind them that escrow strengthens your relationship by demonstrating a commitment to business continuity — for both parties.
» Learn how to set up a software escrow agreement with Codekeeper
The global trade war won't resolve itself overnight. Retaliatory tariffs, export controls on critical materials, and economic sanctions signal a prolonged standoff. While your competitors scramble to react after their software providers fail, you can be prepared.
By implementing software escrow now, you're not just protecting your operations — you're creating a competitive edge. While others face disruption, your business continues uninterrupted, potentially capturing market share from less prepared competitors.
But the window to act is closing. Contact us today to set up your software escrow agreement and ensure your business remains operational regardless of how the trade war unfolds.