Global supply chains: Navigating the ripple effects of the Trump tariffs

GLOBAL supply chains thrive on predictability – but tariffs create the opposite effect. When governments impose new trade barriers, costs shift, suppliers scramble, and entire industries must adapt in real time.

The US government has recently announced new import taxes on all goods entering the US with a baseline tariff of 10 per cent on all imports including 25 per cent tariffs on all cars not manufactured in the US. This marks a major shift in trade policy, potentially disrupting North American automakers that depend on integrated supply chains across the US, Mexico, and Canada. Analysts note that roughly half of all vehicles sold in the US are imported, making price increases likely.

Asia has also felt the biggest impact of these tariffs, with Singapore – the only Asean country with which the US has a trade surplus – facing a baseline 10 per cent tariff. Meanwhile, Vietnam faces a 46 per cent tariff, Thailand 36 per cent, Indonesia and Taiwan 32 per cent each, and Malaysia 24 per cent.