Archive for October, 2018

Navigating the Tariffs’ Effect on Logistics

Saturday, October 27th, 2018

logistics-profit-center

Trump’s tariffs on Chinese imports has reached the $250 billion mark, nearly half of total imports. The impact of $121 billion dollars levied in retaliation by China, Mexico and Canada touches 6% of total exports and 650,000 people employed by the effected industries (NY Times). Unlike the initial $50 billion tariffs, the second round is expected to hit consumers in the wallet.

Many are concerned the levys will stifle economic growth in the United States. Some manufacturers have announced potential closures while others expect to freeze or slow down on hiring and investments until the situation and its impact become more clear.

Still, others hope the rising costs of imported goods will give US-made products an advantage. The American Iron and Steel Institute and the Aluminum Association have both backed Trump’s plan for that reason.

As the trade war escalates, businesses and manufacturers are making moves to protect their profits. As tariffs are set to rise from 10% to 25% on January 1, some importers are stocking up – increasing their inbound shipments before the tariffs hit home.

For an already strained industry, logistics services are becoming tighter and tighter. Warehouse space is filling up and across all intermodal transportation, the resources are sure to raise costs and become increasingly scarce.

How long the tariffs will remain in place is uncertain, but rising import costs will continue to stretch the logistics industry and most certainly be passed onto the consumer eventually. Maybe just in time for the holidays.

To learn more about how American Warehouse can help you solve your logistical challenges, contact us today!

Column: Firing Back at Trump in the Trade War With Tariffs Aimed at His Base. (2018, Oct 3). Retrieved October 7, 2018, from
https://www.nytimes.com/interactive/2018/10/03/business/economy/china-tariff-retaliation.html

Category Business, Logistics