Trump’s 100% tariff on China threatens new supply chain shock

Core Viewpoint - The U.S. is considering imposing tariffs of up to 100% on imports from China by November 1, escalating the trade conflict and creating uncertainty in global supply chains [1] Group 1: Impact on U.S. Companies - U.S. companies relying on Chinese manufacturing may face increased costs and shipment delays as they seek alternative suppliers in Mexico, India, or Southeast Asia [2] - Containerized imports from China, which account for approximately 40% of all U.S. inbound freight, could significantly decrease, leading to blank sailings and rate volatility [2] - Freight forwarders emphasize the need for shippers to adopt proactive strategies in response to the tariffs [3] Group 2: Supply Chain Strategies - Businesses are encouraged to build resilient supply chains by establishing sourcing hierarchies, leveraging dual sourcing, and exploring bonded warehouses or free trade zones [4] - The current trade landscape has accelerated discussions around these strategies among companies [4] Group 3: Trade Data - Year-to-date trade between the U.S. and China is approximately $420 billion to $440 billion, a decrease from over $465 billion during the same period in 2024 [5] - Major U.S. imports from China include electronics, machinery, furniture, and consumer goods, while top exports to China consist of agricultural products, aircraft, and semiconductors [5]