The Commercial Real Estate Alpha Site

Tariff tantrum article via Titan News

The U.S. plans next week to impose an additional 10% tariff on imports from China and move forward with 25% tariffs on products from Canada and Mexico.  The China move, slated to take effect Tuesday along with the Canada and Mexico actions, doubles up on the previous 10% additional tariff Trump placed on Chinese products this month. Beijing has been trying to put together an initial proposal that involves reinstating a trade agreement signed with the first Trump administration in early 2020 but no offer is on the table.

For businesses and investors, a fresh 10% tariff on Chinese imports signals heightened trade risk ahead. Companies should prepare for moderately higher costs and potential supply bottlenecks, using diversification and pricing strategies to blunt the impact. Investors, meanwhile, should expect near-term market jitters – but also opportunities as supply chains reorder. In sum, while the U.S. aims to pressure China, the immediate effect will be to raise hurdles for corporate America in the form of pricier inputs and more complex logistics.