To reduce illegal imports and encourage domestic manufacturing, Trump has imposed import tariffs on three countries:
Mexico: 25% on all items
Canada: 10% on energy products and 25% on other items
China: 10% on all items

These measures have caused significant impacts on global supply chains, including:

1/ Cost Increases: Tariff increases have raised import costs, directly affecting manufacturers, retailers, and ultimately consumers. This has led to reduced profits and decreased competitiveness. Even for U.S.-based manufacturing, raw materials may still be imported from tariffed countries, causing indirect effects.

2/ Supply Chain Disruptions: Manufacturers have been forced to seek alternative suppliers or adjust production processes, leading to delays, shortages, and increased complexity in management.

3/ Changes in Sourcing Strategy: There is a growing trend toward supplier diversification, seeking nearshore, offshore, or suppliers from non-tariffed countries.

4/ Transportation Challenges: Congestion and delays at Mexican and Canadian border customs can disrupt the flow of goods.

5/ Retaliatory Measures: Tariffed countries may implement retaliatory import tariffs on U.S. goods, creating trade tensions and disrupting global markets.

6/ Inflationary Pressure: Increased production and import costs risk pushing up goods prices, exacerbating inflation.

This tariff policy not only aims to boost domestic production but also presents numerous challenges for businesses in an increasingly volatile global trade environment. What other notable impacts do you think this policy has?

Source: Nguyen Ngoc