Tariffs, Sanctions, and Supply Chain Distruptions

Donald Trump’s promise to immediately impose tariffs did not happen on Monday. However, he plans to impose 25% Tariffs on Mexico and Canada on Feb. 1 over illegal immigrants and fentanyl entering the US. Also Trump memo calls for studying trade with China, Canada and Mexico.

A.P. Moller-Maersk A/S anticipates that the ongoing conflict in the Red Sea region will continue to disrupt global trade significantly throughout 2025. The company's CEO highlighted the prolonged impact on shipping routes and supply chains.

The United States has sanctioned nearly 400 individuals and companies across India, China, and Türkiye. These entities are accused of supporting Russia's military operations, and the sanctions aim to disrupt supply chains aiding Russia's war efforts.

There are significant uncertainties in the world nowadays; which inevitably impact international trade. As a result of these uncertainties, avoiding making rigid long-term plans may be more prudent.

Sources:

Reuters

Bloomberg Tax News