While many companies are taking a wait-and-see approach, others are publicly discussing production changes ahead of Trump’s return to the White House.
Last week’s electoral victory of Donald Trump is having an immediate effect on global supply chains, with several companies publicly discussing production changes they’ve made ahead of his return to the White House.
During the campaign, Trump vowed to enact sweeping trade restrictions ranging from across-the-board import duties to increasing the cost of goods from China through tariffs as high as 60% to 100%.
The wide range of possible outcomes has many firms waiting to see what the actual trade policies will be before enacting a final plan. Others are already moving ahead with elements of their supply chain strategy.
“I don’t think anybody’s surprised”, TD Cowen analyst Oliver Chen told Business Insider. “The probability factor was high for either side.”
Further softening the element of surprise is the fact that the world has already experienced Trump’s approach to trade — and China in particular — in his previous administration, which led many companies to develop more flexible sourcing.
Bark Box CEO Matt Meeker called the reelection of Donald Trump “a bit of Groundhog Day for us.”
Before Trump became the Republican nominee, many companies were already exploring alternatives to their former reliance on China by finding partners in other Asian countries, or by “near-shoring” production to the Americas.
