Sun, 06 Jul 2025

Sun, 06 Jul 2025 Tariffs are shifting global supply chains

Trump's 90-day pause on his sweeping tariffs plan is about to expire. But already some firms are radically changing how they work.
Companies around the world are facing significant disruptions in their supply chains due to the impending expiration of a 90-day pause on US tariffs. When Donald Trump's tariffs plan was introduced, Learning Resources, an Illinois-based educational toy firm, saw its annual import tax bill jump from $2.5 million to over $100 million. To mitigate this loss, CEO Rick Woldenberg has shifted 16% of the company's manufacturing to Vietnam and India. However, he admits that there are uncertainties surrounding the new production facilities and warns that finding and training new suppliers can be expensive and time-consuming. The company is also continuing its legal battle against the US tariffs. Other businesses affected by the trade tensions include Cluck Clucks, a Canadian fried chicken chain, which has had to limit its menu options due to increased costs from Canada's retaliatory tariffs on US imports. Canadian companies are facing a "double hit" to their supply chains, with both Trump's tariffs on Canadian exports and reciprocal tariffs from Canada causing difficulties. The uncertainty surrounding the trade tensions is also prompting companies to reassess their export strategies. Spanish olive oil producer Oro del Desierto has seen its sales in the US impacted by the 10% tariffs imposed by Trump, and it is considering reducing its exports to the US if the situation does not change. Global supply chain expert Les Brand argues that the speed and velocity of Trump's tariff decisions are exacerbating the problem. Meanwhile, Canadian companies are bracing for further disruptions as they navigate the ongoing trade tensions with the US. Cluck Clucks CEO Raza Hashim warns that his company may have to pass on increased costs to consumers if the situation does not change.
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