What Trump's Tariffs Mean for Supply Chain

US President Donald Trump and his administration have imposed a 10% baseline tariff on US imports, with the EU and China among those hit by higher rates

US President Donald Trump has announced sweeping tariffs on what has been dubbed by the White House as 'Liberation Day'.

President Trump and his administration have imposed a baseline 10% tax on US imports, with some countries set to be charged as much as 50%. 

Dozens of nations will be impacted by reciprocal tariffs, reflecting what they charge the US.

Many economists say the announcement will trigger a global trade war, with trading partners expected to slap numerous retaliatory tariffs on their own imports from the US. 

What's certain is that countless organisations, particularly large enterprises, will see their global supply chain severely tested over the coming months. 

Holding aloft a board demonstrating his plans, Trump announced that around 60 countries would be hit by reciprocal tariffs, albeit at a discounted rate. 

He regards these nations to be the "worst offenders" when it comes to historic trade policies. 

Asian trading partners have been hit particularly hard. They include China (54%), Cambodia (49%), Vietnam (46%), Thailand (36%), Taiwan (32%) and Japan (24%). 

Meanwhile, the European Union will feel the effects of a 20% tax. Ursula von der Leyen, President of the European Commission, called the decisions taken by Trump and his administration a "major blow to the world economy".

"Uncertainty will spiral and trigger the rise of further protectionism," she added. "The consequences will be dire for millions of people around the globe."

Despite failing to agree a concrete trade deal in the build-up to Liberation Day, the UK will face a more lenient tariff in the form of the 10% base rate. 

Others set to be taxed 10% include Singapore, Brazil and Australia. 

The full list of newly-imposed tariffs can be found below.

Leaders from the world of procurement, supply chain and logistics have been responding to Trump's announcement in their droves. 

Ram Ben Tzion, Co-Founder and CEO of Publican, a digital shipment vetting platform, said logistics operators would need to increase customs processing and clearance capacity to handle all new regulations and tariff requirements.

Focused on the truckload freight market, Matt Muenster, Chief Economist at Breakthrough, said relatively modest gains could be expected until the second half of 2025. 

"While capacity continues to gradually leave the market, we expect rate pressure will also be limited until the second half of 2025," Matt continued. "We believe tariff uncertainty increases the probability of a slower freight market because business uncertainty will delay investment decisions."

Jamie Barsimantov, VP of Supply Chain Strategy at Sphera, said supply chain managers had been in "continuous emergency mode" over the past two months due to tariff uncertainty. 

Looking to the UK, Alex Altmann, Partner at Lubbock Fine, said the country's government should continue trying to negotiate a trade deal with the US in a bid to create a new role for itself as an offshore manufacturing centre for EU companies, such as German automotive manufacturers. 

Nucleus will keep a close eye on this as it becomes clearer, and adjust our operations accordingly.

Source: Supply Chain Digital

Image Source: Getty Images