Southern California Faces Logistics Shift Under Tariffs
If you have domestic production and you’re going to move products into Southern California because you want to supply customers here, you do have a choice.
If you have domestic production and you’re going to move products into Southern California because you want to supply customers here, you do have a choice.
Tariffs continue to cause great stress in the financial markets and with certain industries. In fact, it divides manufacturers from distributors, logistics, and goods movement industries largely dependent on imports and trade.
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The announcement of reciprocal tariffs has created extreme volatility in the stock markets and nervousness among executives. Geopolitical, supply chain, and cyber risks plague the end-to-end supply chain and have stimulated additional debates about control in the Panama Canal, Greenland, and global supply chains.
Supply chain shortages have improved from their all-time high in Q1 2024. Yet, risks remain high, especially with the increased level of vulnerabilities.
As companies navigate the current risk-laden global environment, regional supply chains have increased in popularity. The wars in Russia-Ukraine and the Middle East have spurred concerns about the risks associated with global supply chains.
Risks abound in the global supply chain and goods movement systems. The only successful strategy to thrive is to create a resilient supply chain. According to the Global Port Tracker (GPT) report from Hackett Associates and the National Retail Federation (NRF), the specter of labor strife and new tariffs, along with strong sales, is driving U.S. retailers to keep imports surging through the spring.
"Trump is utilizing tariffs as a negotiating tool in support of his agenda. Although most of what is communicated as potential tariffs is unlikely to go into effect for extended periods of time, tariffs will be rolled out in the next few months." Lisa Anderson is quoted in this article from PYMNTS.
With new tariffs set to take effect, businesses are re-evaluating supply chain strategies to mitigate costs and risks. From reshoring to supplier diversification, companies are adapting to shifting trade policies while balancing efficiency and profitability. As tariffs reshape global sourcing, proactive executives are seizing opportunities to strengthen resilience and streamline operations.