A comprehensive tariff policy recently announced by the Trump administration has shaken the global trade network like a heavy bomb, forcing shippers, shippers and manufacturers to adjust their strategies immediately. The new policy includes a basic tariff of 10% on nearly all U.S. imports and higher tax rates on certain countries — as high as 46% — many in the industry likened the situation to the turmoil at the start of the COVID-19 pandemic.
The first batch of tariffs will take effect on April 5, and the second phase for specific countries will go live on April 9. SOME U.S. IMPORTERS ARE RUSHING TO SPEED UP SHIPMENTS OR SWITCH SHIPPING METHODS TO COMPLETE IMPORTS BEFORE THE NEW TARIFFS TAKE EFFECT; OTHERS BET THAT TRUMP MAY TEMPORARILY CHANGE POLICY, OPTING TO HOLD GOODS IN WAREHOUSES IN ASIA.
One shipping agent said: “Some customers even stop shipping altogether, choosing to store goods in Asia or adopt the air, bulk shipping method rather than the previous continuous shipping pattern.” From whole cabinets to packing, arranging air freight in an emergency, and even renegotiating delivery terms to avoid customs duties, importers are trying to find the best solution in the chaos.
This time, it was not only China, but Vietnam, which was once considered an alternative producer, and is now also subject to a high tariff of 46%. Although the administration claims the move is to revitalize U.S. manufacturing, in fact many industries have already been under pressure. North American manufacturing saw its largest decline in two years in March, according to S&P Global's Purchasing Managers' Index. “The challenge today is not just logistics, but the sum of risk management, planning and structural adjustment,” said Jim McCullen, Chief Technology Officer at Century Supply Chain Solutions.
Research shows that finished consumer goods will suffer the greatest impact. Significantly increased tariffs for the following categories:
Even items not on the initial list, such as copper, semiconductors and pharmaceuticals, may face tariffs of around 25% after future tariff reviews. Based on 2024 import volumes, US importers are estimated to have additional burdens each year $4,580 billionThe cost.
In Los Angeles, a shipping agent noted that while we haven't seen a large number of new orders, existing shipments are actively ensuring on-time delivery. Overall, however, the market is full of uncertainty. Some traders are concerned about whether U.S. Customs has sufficient capacity and technological infrastructure to enforce the policy. “Previous aluminum tariffs have thrown the system into disarray, this time more comprehensive, more complex, and will certainly have a bigger impact,” said Robert, CEO of FreightRight.
Due to rapid policy changes, businesses are forced to shift from quarterly planning to daily decisions, and the logistics industry generally believes this will be a test of real-time decision-making ability. A senior logistics official pointed out that this would be the best example of testing whether an enterprise can make policy adjustments based on real-time information. Before the new trade map is clear, what can be certain is that the era of stable and predictable global supply chains may have gone down in history.
Source: https://www.joc.com/article/new-us-tariffs-forcing-shippers-to-recalculate-supply-chains-on-the-fly-5976471
