Always look on the bright side of tariffs - part 2

 Well, at least with a tariff things are merely (a lot) more expensive.  It may lead to some suppliers dropping out of the market, and some products and services no longer being available....  but in theory they just add cost, inconvenience and drive inflation.

A bigger concern, which I think has been there but just not really a major focus of attention, is that China is not only a key manufacturer but a key source of raw materials.  Which they have tight control on.  Through the belt and road initiative they also exert control on some alternative sources of supply.

A particular choke point may be on rare earth metals (physicists joke that they are not rare, not earth and not even metals... but ignore us).

Controlling access to these essential elements used in advanced materials has long been a key Chinese economic strategy - and now they may just turn off the supply to the USA.  And the EU.

Not being able to get things at any price is a bigger problem than higher prices.

A couple of articles here and here.

Good luck out there.

Always look on the bright side of tariffs - part one

 WELL, we are still in uncertain times.  Tariffs are being introduced, reduced, raised, paused, exempted on what feels like a daily basis.

So, from a Procurement & Supply Chain point of view let's take the positives - our role in the organisation is (currently) critical to success  - maybe even to survival.  So, for once in our lives we are on the main stage (or at the very least, we should be - it may not be happening for you).

And because of the complex nature of some of these tariffs (see below) it is vitally important that we understand the origins and structure of our supply chains.  So, we should be supported in those investigations rather than being told just to get a shipment for Tuesday...

Being less flippant and exaggerated, it is a good reminder of the Covid-19 lesson that unless we really understand our supply chains we are not aware of the risks and opportunities within it.

Good hunting.

Tariffs - wow!

 The world has changed.  It is not the same is it was on 31st March 2025.

I'm not in a position to tell you what to do in response, apart from to suggest that doing nothing is not an option.

The good news for Procurement and Supply Chain professionals is that our organisations now need us, and need us to be on top of our game.

Even if you management has not requested you to do so, I recommend you look hard at your existing supply chains and review your Risk Registers.  Consider what might change and what your options are (if you have any).

The situation is likely to remain fluid for quite some time.  Good luck!