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tariffs on imports from Canada, Mexico, and China is impacting global trade networks, affecting industries ranging from automotive and electronics to agriculture and energy. auto parts are sourced from Mexico, making the tariff impact immediate and severe. Today’s escalation of U.S. Approximately 40% of U.S.
Companies leaning heavily on global sourcing? Tariffs on steel from Chinaup 25%and retaliatory moves from Canada and Mexico may turn supplier relationships upside down. manufacturer I know saw their import costs jump overnight, forcing a rethink of a decade-old sourcing strategy. What Is Agile Procurement?
Automotive: Can JIT manufacturing survive legal disruptions to tariff policy? Automakers must model dual-path sourcing strategies and reintroduce buffer inventory—not just for parts, but for regulatory flexibility. Companies relocating to Mexico may face rapid reversal in cost advantage if emergency tariffs are struck down.
Companies that previously prioritized cost-cutting and centralized sourcing quickly found themselves exposed to serious production and distribution risks. In response, many organizations have shifted toward decentralized and regionalized supply chain models, distributing production and sourcing across multiple regions.
Companies importing and exporting goods, be it finished retail products, manufacturing components or materials, now face substantial cost and price pressures that squeeze margins and force difficult pricing, sourcing, operations and distribution decisions.
Bowman, SupplyChainBrain In the rush to adjust sourcing strategies in line with current trends in international trade, the answer might be to think small. manufacturers have spent the last few decades consolidating production at gigantic offshore plants, especially in China. It could even entail some degree of domestic production.
Find alternate supply sources for the material and goods that are outside the affected tariffs. tariffs on key imports and exports could impact manufacturing costs. Companies that rely on raw materials, auto parts, and industrial components from Canada, Mexico, and China may experience price fluctuations.
Tariffs are reshaping sourcing strategies, forcing tech upgrades, and making inventory planning a lot more complicated. For global businesses relying on real-time logistics and lean inventory models, the question is how prepared is your supply chain when tariffs hit? based cosmetics brand sources glass jars from Europe.
As companies across North America and Europe reconfigure their supply chains to reduce dependency on overseas operations in the wake of recently announced tariffs, there is a growing need for fully transparent, granular, and holistic visibility into manufacturing and supply chain operations as a whole. ThroughPut.AI
Reported April 24 Over 60% of our business is from products that are manufactured, bagged, assembled or grown in the United States and only 12% of our business is direct imports. Recall, we purchased targeted additional inventory in late fiscal '25 and early fiscal '26, ahead of tariffs. A big thanks to you all for reading my articles.
That stated, in certain regions such as across Europe and China , the year continues to present economic and manufacturing challenges. Global wide manufacturing activity levels as measured by the J.P. Morgan Manufacturing PMI® contracted once again at the end of Q3. In the specific case of Germany , it is both.
The regulation is designed to provide European consumers with extensive data about the provenance of the items they purchase, all the way back to the sourcing of raw materials. Time to Start Preparing for the Digital Product Passport SCB FEATURE Selling Into the EU?
This in the second half of 2024, businesses front-ended added inventory purchases to mitigate higher costs of goods. That has generally driving up safety stock inventory levels and warehousing costs. percent in inventory storage and carrying costs, and 2.8 As the results of the U.S. percent in other costs. While China and U.S.
The completed engine is then sent to a vehicle assembly plant in Mexico, traveling through the U.S. Finally, the assembled vehicle crosses the Mexico-U.S. production of alternative models, or halting vehicle manufacturing for the U.S. market in Mexico. without additional tariffs under the USMCA agreement. million U.S.
AI-powered tools can provide predictive insights into potential tariff changes, identify vulnerabilities within supply chains, and optimize, for example, inventory levels to ensure adequate stock without excessive overheads. However, as we have seen with the tariffs levied against Mexico and Canada, nearshoring is not always the answer.
Hunt, BNSF and GMXT Launch Intermodal Freight Delivery Service in Mexico More from this author Subscribe to our Daily Newsletter! Timely, incisive articles delivered directly to your inbox.
Register here Supply Chain News for the Week: Trump Vows on New Trade War Sends Supply Chain Importers Scrambling Amid President-elect Trump’s proposed tariffs, retailers and manufacturers are working with logistics partners to “frontload” shipments, aiming to mitigate potential cost increases and supply chain disruptions.
So we articulated about 14% from China, which, you know, if you do all of the math, you know, our NAPA business is really the outsized exposure with China, Mexico, Canada, 20% to 15% to 5%, respectively. So China is always going to be a manufacturing hub for us. So we think the diversification of the business is an advantage.
The Trump administration is considering 25% tariffs on imports from Canada and Mexico and 10% on goods from China to address trade imbalances and protect domestic industries. These tariffs will raise costs, disrupt supply chains, and force companies to rethink sourcing and logistics strategies.
” • Increase Inventories. “Third, companies could decide to hold excess inventory. A higher level of inventory would allow firms to better weather temporary supply shocks.” Pressure for companies to change their supply chains is also coming from domestic political sources. Competition will ensure that.”
At the end of Q1-2025 , global manufacturing activity levels remained at a state of muted expansion amid reported weak production volume growth. Morgan Global Manufacturing PMI posted a value of 50.3 The HSBC India Manufacturing PMI posted a March value of 58.1 in March, down from the 50.6 reported for February.
The Trump administrations recent tariffs on automotive imports from Mexico and Canada have injected significant uncertainty into North American supply chains. Trump Tariffs & USMCA Considerations The imposition of a 25% tariff on automotive imports from Mexico and Canada has created substantial challenges for OEMs and suppliers.
Mexico-Canada Freight Down in All Modes for April U.S.-Mexico-Canada Mexico-Canada Freight Down in All Modes for April Photo: iStock/grandriver June 27, 2025 SupplyChainBrain Total transborder freight in North America was $126.3 and Mexico totaled $69.7 billion in April, decreasing 8.5% Freight between the U.S. billion, down 13.6%
Trump intensifies trade war with threat of 30% tariffs on EU, Mexico President Donald Trump on Saturday threatened to impose a 30% tariff on imports from Mexico and the European Union starting on August 1, after weeks of negotiations with the major U.S. trading partners failed to reach a comprehensive trade deal.
A three-week window, a high-stakes reset Between July 7 and August 1, companies are re-evaluating sourcing, lead times, SKUs, and supplier exposure. Feb 1, 2025 Executive orders set 25% tariffs on Canada and Mexico. This isn’t a policy debate, it’s a three-week countdown to material impact. president issued a broad tariff directive.
Court of International Trade, which struck down several tariffs imposed by President Trump, including the Liberation Day Tariffs, Canada/Mexico General Tariffs, and the increased 145% China Tariffs. 8 As such, the challenge to quickly manufacture and transport inventory now, or at a moment's notice, remains paramount.
Reported May 29 As we continue to navigate tariffs, we're implementing various mitigation strategies, including partnering with our sourcing vendors to reduce costs. Eva Boratto - Chief Financial Officer With respect to inventory, we ended the first quarter with total inventory up 7% to prior year.
We now share excerpts of Prediction Two likely to be one of the more longer-term consequential predictions, that which is related to supply network strategic and tactical sourcing strategies. With Mexico now representing the largest inflow of goods into the U.S., or other global companies. from China with similar conditions.
The three judge panel additionally ruled that specific tariffs imposed on Canada , Mexico , and China that were associated with stemming drug trafficking fail because they do not deal with the threats set forth in those orders, the panel wrote.
Nowhere was that tension more visible than during one of the conference’s hardest-hitting panels, a deep dive into the complexities of tariff policy and its ripple effects on global sourcing, consumer pricing and retail resilience. Retailers and manufacturers alike are building permanent workarounds. Before Trump, U.S.
This shift may prompt retaliatory actions from other countries, placing manufacturers in a position where they’ll need to revisit strategies for managing tariff impacts. This can yield the best financial outcome, though renegotiating contracts and conducting competitive sourcing requires time and may sour long-term supplier relationships.
Hunt, BNSF and GMXT Launch Intermodal Freight Delivery Service in Mexico Freight Forwarding/Customs Brokerage The Top 8 EDI Myths - Debunked! Gives Permission for Drones to Patrol Railways U.K. Issues Food Alert on Jolly Ranchers Candy More from this author Subscribe to our Daily Newsletter! Featured Product Popular Stories J.B.
from China, Canada, Mexico and other countries in the coming weeks and months. trade policies , both Canada and Mexico have promised to impose their own tariffs on American exports in retaliation. In 2023, American imports from Canada totaled $428 billion, while imports from Mexico were even higher, at $479 billion.
The Supply Chain Matters blog highlights this weeks published index data that reinforces that North America based manufacturers have initiated unseasonal forward loading on inventories. The reports principle takeaways were noted as the following: Increased safety stockpiling reported by North American manufacturers, led by the U.S.,
Regarding profitability growth the report specifically indicates- While we continue to execute on innovations to reduce the cost of manufacturing and operations, over time, we expect our hardware related profits to be accompanied by an acceleration of AI, software and fleet-based profits. million vehicles. million vehicles.
As a precaution, the Chinese government issued a wave of force majeure notices to protect their manufacturing base who were supplying Western firms, to prevent litigation. The one-two punch of the US-China Trade War and inventory challenges has forced many companies to reduce product lines, factories, and sourcing locations.
From electronics manufacturers to retail giants, companies are grappling with a complex landscape of rising duties and other supply chain challenges. The stated aim of those measures is to bolster domestic manufacturing and reduce reliance on foreign supply chains. In the U.S., In the U.S., Beyond the U.S.,
While the Trump Administration’s stated goal is to bring more manufacturing back to the U.S., tariffs present major challenges for small manufacturers and e-commerce brands. For many, higher costs, supply chain delays, and unpredictable inventory flows are creating significant hurdles. Tariffs can disrupt inventory management.
Mexico has unique, strategic advantages under the United States-Mexico-Canada Agreement (USMCA) and a favorable trade environment, “This positions Mexico as a reliable alternative for companies seeking to reduce exposure to trade friction and long lead times from overseas markets,” the report’s authors said.
This creates a ripple effect, as mid-sized manufacturers go out of business due to increased competition. Recent conversations with more than 30 manufacturers across Latin America revealed a striking pattern: less than half of production planning now relies on demand forecasts.
US-China trade reprieve buys Shein and Temu time to restock US inventory An agreement between the United States and China to temporarily slash tariffs stopped short of reinstating the U.S. "de US slashes 'de minimis' tariff on small China parcels to as low as 30% The U.S. Cattle futures surge over US halt to Mexican cattle imports U.S.
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