Adidas is already talking about revamping its supply chain if new tariffs are imposed on its products.
Consumer goods companies and retailers are feeling the heat — and this time, it doesn’t have to do with Amazon.
The source? US-imposed tariffs on select foreign goods, meant to curb China and other countries’ influence over the American economy.
In one of its recent moves, the Trump administration proposed a list of 1,300 Chinese products, including TVs, pharmaceuticals, and other appliances, worth $50B, that could be subject to a 25% tariff. This would add to the list of existing tariffs on washing machines, solar panels, aluminum, and steel.
Consumer-focused companies are worried about how these tariffs will affect inventory and production costs, and ultimately prices, given their dependence on Chinese raw materials and supplies.
Supply chain digitization offers a potential means of navigating this uncertain climate, by improving supply chain flexibility and potentially reducing costs.