{"id":82278,"date":"2024-11-11T00:00:00","date_gmt":"2024-11-11T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/logistics\/2024\/11\/11\/trumps-victory-to-send-ripples-across-global-supply-chains\/"},"modified":"2024-11-11T00:00:00","modified_gmt":"2024-11-11T00:00:00","slug":"trumps-victory-to-send-ripples-across-global-supply-chains","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/logistics\/2024\/11\/11\/trumps-victory-to-send-ripples-across-global-supply-chains\/","title":{"rendered":"Trump\u2019s victory to send ripples across global supply chains"},"content":{"rendered":"

Global trade braces for a new Trump presidency<\/strong>: <\/strong>The world is gearing up for US President-elect Donald Trump\u2019s potential trade war, which could see a 10 to 20% tariff on imports from all foreign countries and an additional 60 to 100%<\/a> tariff on imports specifically from China, with several logistics players urged to front load their shipments ahead of any changes in tariff policy, CNBC<\/a> reports. The tariffs will likely impact US retailers and manufacturers as they grapple with increased prices.<\/p>\n

(** Tap or click the headline above to read this story with all of the links<\/strong> to our background and outside sources.)<\/p>\n

\u201c2018 all over again\u201d? <\/strong>The frontloading of freight during Trump\u2019s trade war on Chinese imports in 2018 drove a rise in ocean container shipping freight rates by more than 70%, but fears of a 100% tariff \u2014 compared to 25% in 2018 \u2014 is making the incentive to front load greater. \u201cThis is 2018 all over again\u2026 the calls expand beyond shippers who have Chinese imports. The global tariff threat is fueling calls for frontloading from all around the globe,\u201d VP for global supply chain at ITS Logistics Paul Brashier said. <\/p>\n

The impact of Trump\u2019s proposed tariff increase will lead to \u201cdramatic\u201d double-digit percentage price spikes in all six retail categories<\/strong>, including footwear, furniture, household appliances, travel goods, toys, and clothing, according to an NRF report (pdf)<\/a>. The tariff hikes will \u201ccreate an enormous headache\u201d for retailers, which are prone to pass those increases on to consumers, resulting in decreased spending from already price-conscious shoppers, CNBC<\/a> reports, citing comments by GlobalData managing director Neil Saunders.<\/p>\n

Which companies will be affected? <\/strong>Which companies will suffer from tariff increases will depend on where their goods come from and whether they have the pricing power and popularity to force higher profit margins or raise prices. Giant retailers like Crocs, Skechers, and American Eagle Outfitters are at a higher risk because 20% or more of their goods are sourced from China, retail analyst Lorraine Hutchinson said in a Bank of America research note. On the other hand, companies that source their products from the US would be less vulnerable to the tariffs. <\/p>\n

Countries set to be impacted the most: <\/strong><\/p>\n