Tariff changes reshape supply chains
New tariffs on imports from China, Mexico and Canada are driving businesses to reassess procurement strategies, as Stephen Dyke (pictured), principal solutions consultant manager at FourKites, has stated in a comment. Key sectors affected include electronics, machinery, plastics and furniture, where China has been a dominant supplier.
“Organisations caught with excessive high-tariff inventory amid dropping consumer demand will face a significant financial burden,” Dyke said. He added that consumers can expect price increases, longer lead times and reduced product variety as businesses focus on high-volume items to manage risk.
The removal of the USD 800 ‘de minimis’ threshold will further disrupt cross-border trade, requiring full customs clearance for over 1.3 billion shipments annually. According to Dyke, retailers who rely on direct overseas shipments may shift to bulk imports for domestic fulfilment, raising operational costs. (js)