A very insightful article by Beth Pride of Inbound Logistics, summing up the major areas of uncertainty in international commerce. Tariffs, trade barriers, tantrums, political escape rooms, and maybe even a happy ending… It\’s all there!
A few key points:
If the US\’s new round of planned tariffs go through, they raise what is essentially a tax on American business to $129B. GDP and wages are predicted to contract, with 300k jobs lost.
CUSMA (the new NAFTA) is signed, but need to be ratified by all 3 countries. It\’s expected to come into effect on 2020. It\’s feared if US Congress doesn\’t ratify, someone\’s feelings will be hurt and they would withdraw from, NAFTA, plunging the 3 member countries into crippling economic chaos.
Brexit, Russia, and CPTPP: more chaos and uncertainty for the former, potential and hope for the latter.
Trade is a main topic in the brains of corporate leaders. The financial and supply effects of tax and non-tax barriers represent a dependable danger to corporate achievement; they additionally may push some little to moderately sized businesses to the verge of collapse. The trade wars and other economic policies driven by the United States and pursued by numerous nations are not leaving soon.
These regions need serious thinking by any organization doing business: the United States, Canada and Mexico, the United Kingdom, Russia, and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership nations (CPTPP).