By: Sean Windle, ProcurementIQ Analyst
If there is one takeaway for the procurement world in the wake of the Trump Administration’s announcement of tariffs on steel and aluminum imports, it’s that supply chain disruptions aren’t a question of if, but rather when? In March 2018, President Trump announced duties of 25.0% and 10.0% on steel and aluminum imports, respectively. The decision sparked a flurry of anxiety among procurement and supply chain professionals worried about the tariffs’ financial impact on their budgeting and sourcing activities.
These concerns exacerbated further with the announcement in May that the European Union (EU), Canada and Mexico, major allies that were previously exempt from the tariffs, would be subject to the same duties. With targeted countries now announcing retaliatory tariffs of their own, there are fears of a looming trade war that could upend decades of global trade policy that has helped build the post-World War II global economy.
ProcurementIQ has identified several strategies buyers can take to minimize the financial impact of these tariffs.