In light of the recent U.S. presidential election, many companies are looking to take proactive measures to plan for anticipated import tariff increases. President-elect Trump suggested he would impose tariffs of 60-100% on some China-produced goods imported to the U.S., and he favors a 20% universal tariff for all other countries.
The higher costs associated with these tariffs are certainly challenging. The question is: What is the best course of action for your business?
Numerous supply chain strategies should be at the top of your list for consideration. Could your company potentially find a more local supplier for goods traditionally imported from China or elsewhere? Would it make sense for you to go vertical, to produce the materials your company needs by building your own facility or purchasing a key domestic supplier?
While the trend of reshoring/near-shoring has been growing over the past several years, we expect these tariffs to spur even more activity. Of course, domestic production brings challenges of its own. For example, the U.S. manufacturing sector’s unemployment rate stands at a low 3.6% (as of October 2024). You may need to explore automation for some processes, as properly staffing your new facility could be extremely difficult.
I encourage you to reach out so we can discuss your options and develop a strategic plan that suits your needs. Our team is uniquely positioned to help your company ensure profitable growth, despite geopolitical uncertainties.
Sincerely,
Daniel Murad, CEO, The ChemQuest Group, Inc.
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