How Trump’s tariffs are snarling supply chains
Despite signs of a thaw earlier this week, Washington and Beijing are locked in a standoff on tariffs, and global supply chains are feeling the pressure.
Disruption from tariffs is occurring at multiple points in commercial supply lines — from factory floors in East Asia, through the shipping and transportation industry, at U.S. ports of entry, and by U.S. retailers who are warning of empty shelves.
A quick resolution with Beijing, while desirable for U.S. importers, could spell additional interference, as a sudden demand surge would likely bullwhip through the commercial pipeline.
Here’s a look at what global supply chains are going through as the U.S. and China dig their heels in.
On the Chinese factory floor
The tariffs are discombobulating Chinese production, with work drying up for some firms as others pick up the slack, supply chain experts told The Hill.
“The flow of goods is far less predictable,” Sébastien Breteau, CEO of quality control firm QIMA, which inspects factories in China, said. “Some suppliers have excess capacity, while others face bottlenecks driven by shifting demand.”
Breteau said that some of his clients are changing their business strategies.
“Several large Chinese multinationals we work with are actively repositioning. In some cases, they’re even deprioritizing the U.S. market in favor of more globally stable strategies. Tariff uncertainty and regulatory unpredictability are … shaping sourcing decisions at the........
© The Hill
