Tariff increase on Chinese EVs, batteries, tech and medical products pushed back until mid-August.
𝗪𝗵𝗮𝘁’𝘀 𝗴𝗼𝗶𝗻𝗴 𝗼𝗻 𝗵𝗲𝗿𝗲?
The U.S. Trade Representative has postponed implementing large tariff increases on Chinese imports, including a 25% duty hike on ship-to-shore cranes, and a final decision is expected later this month.
The proposed tariffs have raised concerns from port authorities and industry groups about potential harm to port efficiency, supply chains, and the U.S. economy.
𝗪𝗵𝗮𝘁 𝗱𝗼𝗲𝘀 𝘁𝗵𝗶𝘀 𝗺𝗲𝗮𝗻?
The delay in tariff implementation allows time for further review and potential adjustments, with over 1,100 public comments being considered, highlighting the significant role these tariffs could play in shaping the economic landscape for American businesses.
📌 𝗝𝗕𝗙 𝗣𝗘𝗥𝗦𝗣𝗘𝗖𝗧𝗜𝗩𝗘 - 𝗜𝗻𝘀𝗶𝗴𝗵𝘁𝘀 𝗳𝗿𝗼𝗺 Adam Gray
In case anyone hasn’t thought in detail about the complexities of International Trade agreements and the offshore manufacturing of heavy industrial machines and component materials, this delayed Tariff hike on Chinese imports exemplifies the issue wonderfully.
While superficially, most Americans would likely agree that, conceptually, making Chinese goods less competitive to persuade the use of U.S. vendors while generating additional revenue for the economy is a good plan.
The issue becomes very complex when the things you need to renovate the infrastructure of U.S. commerce aren’t readily available from U.S. vendors.
With the port issues plaguing the U.S. this year, from the Baltimore accident to the threat of union labor strikes, the last thing our already struggling import and export infrastructure needs is to be legislated into being more expensive to repair and maintain.
With any significant supply chain project, there is always the possibility of what we call “unintended consequences.”
From missed integrations to fringe ordering or financial/billing systems, anticipated vendor support, or hardware acquisitions, there is always a period after the initial design where a new obstacle is discovered seemingly every other day.
𝗪𝗵𝗮𝘁 𝗱𝗼𝗲𝘀 𝘁𝗵𝗶𝘀 𝗺𝗲𝗮𝗻 𝗳𝗼𝗿 𝘀𝗵𝗶𝗽𝗽𝗲𝗿𝘀?
You need to be thorough in your process documentation, current and future state.
Understand the requirements and the process changes you are signing up for, and develop a plan to check all the boxes.
Above all, make sure the business solution makes sense on paper before committing to the build timelines, or you will risk delays and budget impacts that frequently aren’t covered in basic contingency planning.
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Article source: https://lnkd.in/eCbH4JJR
Image source: Getty
