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Trump tariffs and geopolitical chaos

Donald Trump returned to the White House last week and took no time in threatening tariffs of 25 percent on imports from Mexico and Canada on 1 February. He also ordered a probe into ‘trade deficits and unfair trade practices and alleged currency manipulation by other countries’ – likely a pre-cursor for tariffs against China.


How does geo-politics cause supply chains to shift?

Global supply chains are fluid and constantly evolving to threats and opportunities. We saw this following the escalation of the US-China trade war in 2018 during Trump’s first term as President.

Ramping up of tariffs on US imports from China prompted shippers to consider their options, such as importing goods into the US via Mexico and Canada.

This contributed to extraordinary growth in TEU (20ft equivalent container) volumes shipped from China to Mexico – up 76 percent between 2019 and 2024. Into Canada, TEU volumes increased 54% in the same period.

Geo-politics may put up barriers to trade but, ultimately, goods will always find their way from one place to another if there is a demand for them.

Will shippers shift supply chains during Trump’s next term in office?

That…

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