Tariffs and Strikes Loom Over U.S. Trade and Global Supply Chains
Early 2025 could bring significant disruptions to global supply chains, as new tariffs and a potential port strike heighten uncertainty for U.S. shippers. Companies are bracing for logistical challenges, balancing inventory needs against risks tied to Lunar New Year closures, tariff changes, and labor unrest.
Shippers face potential disruptions if Trump implements planned tariff increases of 60%–100% on Chinese imports and 10%–20% on others. These tariffs, expected by late February or early March, could significantly raise consumer prices and freight costs. In preparation, companies are considering strategic inventory stockpiling, though production and shipping timelines complicate efforts.
Adding to the strain, the International Longshoremen’s Association (ILA) could strike in mid-January, jeopardizing ports from New England to Texas. The ILA walked away from negotiations over automation disputes, leaving a critical Jan. 15 deadline unresolved. A similar three-day strike in October caused weeks of backlogs, particularly in Savannah, where congestion lingered long after other ports cleared.
With ocean freight taking 40–55 days to reach East and Gulf Coast ports from Asia, shippers are weighing risks. Some companies, like Everstream Analytics clients Whirlpool and AB InBev, are building inventories, but warehousing costs and supply-chain complexities remain significant hurdles.
Meanwhile, U.S. trade with China continues to shift. Chinese manufacturers are increasingly relocating to Mexico, exploiting tariff-free provisions under the USMCA, while Vietnam’s growing trade surplus with China raises concerns of indirect Chinese imports.
“Navigating these uncertainties is more than just stockpiling inventory,” said Corey Rhodes, CEO of Everstream Analytics. “The cost of warehousing and expediting freight are critical operational costs that need to be considered.”
Experts warn that shippers must act swiftly to address potential supply-chain bottlenecks. Logistics firm C.H. Robinson anticipates “strategic pull-forwards” of inventory to mitigate risks, with freight delays likely impacting markets from Southern California to the Gulf Coast. Failure to act could disrupt consumer access, escalate costs, and force companies to rethink long-term sourcing strategies.
Source: CNBC.com