As WholeFoods Magazine has reported, the White House announced an executive order from President Donald J. Trump that involves reciprocal tariffs on goods from around the world, plus a 10% baseline tariff on U.S. imports from virtually all countries, and the levels are higher for some countries. That order is currently on a 90-day pause, except for China where Trump announced on April that he is raising the tariffs on Chinese goods to 125% immediately.
UK-based distributor ACI Group issued a release urging businesses to adopt a proactive approach to the supply chain challenges posed by the tariffs that were announced on April 2 (dubbed Liberation Day), which will be added on top of any tariffs already in place. ACI Group noted that key manufacturing hubs such as China now face total levies of over 50%. Goods from the UK will face an additional 10% tariff.
“Wait and see isn’t really an option anymore,” said Karsten Smet, CEO of ACI, in the release. “The U.S. is the fulcrum of global trade, it owns the world’s currency reserve, and it has essentially turned millions of supply chain routes into toll roads. This is a significant realignment of the global economy and businesses have to be proactive in building new contingencies. In an unpredictable climate, the most successful businesses will be the ones with the most robust, flexible supply chains."
Smet pointed out that, based on President Trump's statements, the tariffs are subject to change depending on the outcome of trade negotiations, so they could be cancelled or revised up or down. In light of the uncertainty, Smet said, "Contingency plans like new supply chain routes and using double or triple sourcing are no longer just nice-to-have, they’re essential...It’s important to move quickly and carefully when navigating these choppy waters. Businesses cannot afford to leave their fates in the hands of government trade negotiators given the many complexities at play. We are actively modelling scenarios and building new contingencies to support our customers through these challenges, and I would encourage any business to take the same proactive approach.”
ACI is known for its vast portfolio of unique materials and ingredients for a range of industries including food, pharma, chemicals, and manufacturing. Its innovative Supply Chain Manager software ensures it has the ability to react quickly to market conditions, and Smet argued that businesses must be equally agile in the face of an unprecedented economic event.
