Donald Trump returned to the White House this week and, perhaps unsurprisingly, raised more questions than answers regarding his America First policy towards trade and import tariffs.
Below, Xeneta Chief Analyst Peter Sand shares his advice on how shippers can mitigate geo-political risks through an ocean freight tender strategy that keeps supply chains moving while also managing spend.
What has Trump said?
On the day of Trump’s inauguration on Monday, he stated he is ‘thinking about’ introducing a 25% tariff on imports from Mexico and Canada on 1 February.
He did not immediately go ahead with vows made during the election campaign of 60% tariffs on goods from China and 10-20% from the rest of the world, instead ordering a probe into ‘trade deficits and unfair trade practices and alleged currency manipulation by other countries’.
How serious is the risk?
Xeneta data shows the last time Trump ramped up tariffs on China imports during the trade war in 2018, average spot rates spiked more than 70% on the criti…
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