Where will it end?
The US imposes 10% tariffs on the UK, 34% on China… even a tiny island populated only by penguins got the baseline 10% tax rate.
Then China retaliated with 34% additional tariffs on US goods, which the US said was a panic move.
Where they tread, more are set to follow. The EU has said it will retaliate, and Mark Carney seems poised to retaliate further if Canada continues to be provoked.
How do you survive a global trade war?
Above all, don’t panic, and take positive action.
Review your supply chain.
Look for alternatives with lower tariffs.
Look for alternative, more stable markets – especially where free trade agreements exist.
As the US becomes less attractive, diversifying your exports to other countries mitigates the risk.
Look at Asia, Australia, Canada and others. Can you make use of Free Zones, customs warehousing and the like to reduce the tariff burden?
But what you 100% cannot do is sit in your hands and wait for everything to blow over. This is a fundamental shift in global trade, and everyone – maybe even those penguins – will feel the impact.
Go Exporting can help you plan for the new normal, whatever that new normal ends up being.
