You are probably already feeling the impact. Levies of more than US$200bn on goods from China to the US, costs associated with the newly inked United States – Mexico – Canada Agreement and changes in other global trade partnerships are negatively affecting the existing supply chain practices of industrial manufacturers. The prices and availability of some products are becoming harder to predict as global trade policies and practices remain in flux.
Many industrial manufacturers that have exposure on multiple levels of the supply chain are reporting pressure on their bottom line. In the second quarter of 2018, for example, the Canadian steelmaker Stelco said tariffs had cost it about US$8.45m; at the end of 2018, Stanley Black & Decker reported a US$50m increase in quarterly costs as a result of them; and United Technologies said it expected to shave 15 cents per share in 2019.