President-elect Trump’s trade plans are casting a shadow on U.S. supply chains, prompting shippers to frontload cargo bound for the domestic market. According to a CNBC Supply Chain Survey, 78% of respondents reported shipping extra freight in anticipation of potential tariffs.
Manufacturers and retailers are diversifying their sourcing strategies, switching to non-Chinese suppliers and manufacturing operations in countries like Vietnam, Cambodia, India, Malaysia, Kenya, Indonesia, Bangladesh, Taiwan, and Turkey. This move aims to mitigate tariff risks and maintain supply chain resilience.
The survey also found that consumer demand remains strong, with 43% of respondents reporting an increase in orders, while the trucking industry is expected to see freight rates rise in the first quarter, driven by the tariffs strategy.
“Shipments ahead of tariff uncertainty are on the rise,” said Jon Gold, vice president of supply chain and customs policy for the National Retail Federation. “Retailers will continue to plan for mitigation and supply chain diversity to ensure resiliency and preparedness ahead of new potential challenges.”
With the Trump administration’s trade policies yet to be fully implemented, shippers are taking proactive steps to prepare for potential disruptions. The survey results highlight the importance of contingency planning, diversification, and risk management in navigating the complex landscape of global trade.
As the U.S. economy enters a new year, with major holidays in Asia influencing supply chain movements, shippers must remain vigilant and adapt to changing market conditions. With consumer demand still strong, retailers are focused on maintaining resilience and preparedness for any potential challenges that may arise from Trump’s trade policies.
Source: https://www.cnbc.com/2025/01/17/trump-tariff-threats-fuel-trade-frontloading-into-us-led-by-china.html