President-elect’s threat of universal tariffs has set off a scramble to get orders out that’s creating bottlenecks and higher costs. President-elect Donald Trump’s continuing threats of massive tariffs are sparking global supply chain concerns as both American and European companies are frontloading orders and considering raising prices while Chinese factories look for buyers outside of the U.S.
Businesses across the world are pushing out orders ahead of Trump’s inauguration January 20, choosing not to wait to see which products or countries will be on the list of targets in Trump’s expected trade war. The president-elect’s threat of universal tariffs has set off a scramble to get orders out that’s creating bottlenecks and higher costs.
“There’s about to be a king tide in the supply chain,” he added. At JLab in California, CEO Win Cramer moved his supply chains away from China to avoid tariffs during Trump’s first term in the White House. He has put in place a hiring freeze until June, and he will impose price hikes on headphones and wireless products if universal tariffs are put in place.
Some companies are frontloading orders, while others are looking for new suppliers or trying to negotiate new agreements with their current suppliers. Consumers are set to pay for the higher costs that come with larger inventories, expedited shipping, or beginning relationships with new business partners.
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