Companies looking to avoid tariffs on imports from China will likely shake up their sourcing. Facing the threat of more tariffs, companies will begin to create supply chains just to export to America. Creating a separate supply chain for the U.S. market would mean eliminating components from China for products bound for the country.
Speaking at the Port of Los Angeles this week, Mary Lovely, a senior fellow at the Peterson Institute for International Economics, asserted, “If the U.S. says, ‘no Chinese content, no matter what the good, what the product, whether there’s a national security implication or not,’ you’re going to see that supply chains will be created at higher expense just to serve the United States.
With President-elect Donald Trump’s plans to impose tariffs during his administration, shippers and supply chain managers are revising their trade strategies — which could come at a higher cost. We’re looking ahead to a period that we think will be very active for trade policy.