Update on Tariffs and Trade
The tariff war going on in the global economy between trading superpowers has generated conflicting viewpoints. In case you have missed the recent updates on trade and tariffs worldwide, Logistics Brief has provided us with an article so that we can catch up on the need to know information.
According to the article, the waters are nowhere near calm when it comes to the battle over tariffs and international trade. So how does this affect you?
Patrick Burnes, in Logistics Management, comments that you need not worry when dealing with transportation; the transportation segments should remain unaffected for now, at least as far as he can tell. However, a statement directly following that by Senior Director Emma Griffith tells us that it is possible that U.S. ports involved with steel and aluminum may be the ones to feel the initial effects of the tariff--but this will be noticed over a period of years, the total time it will take for any big changes in the tariffs to occur.
The article also includes a word of caution for ocean shipping...those involved may be the ones to face the impact of any discrepancies in trade policies, especially when countries like the U.S. and China are going at it. An example provided in the text mentions soybeans--during the past year “the U.S. shipped nearly 57,000 containers worth of soybeans to China”...but with the large tariff looming, it makes for an uneasy situation for these, and any, transactions with China.
Overall, we are still at a messy standstill when it comes to the tariff impositions. This delayed decision, no matter what the final result ends up being, is only creating a greater and greater loss of confidence in the economy. It’s important to note that many countries are involved, not just the U.S. and China. Any country that makes products involved in the trade with these two economic powerhouses is being held in the same suspense.
Check out the full article for an in depth explanation: http://www.logisticsbrief.com/edition/daily-magazine-industry-2018-09-05?open-article-id=8858552&article-title=trade-policy--tariffs-and-your-supply-chain&blog-domain=nowthatslogistics.com&blog-title=now--that-s-logistics