The United States will implement reciprocal tariffs from next week, with potential impacts to the cost of imported products. An RMIT expert comments.
Dr Vinh Thai, logistics and supply chain management
"From now until the reciprocal tariffs are implemented, we may see a very sudden increase in the demand from the United States on things like meat exports from Australia, and other major trading nations."
"The sudden increase in demand is not good because it may disrupt the normal patterns of transportation and supply chain, put everything in chaos, and potentially increase the cost of transportation and freight rates."
"The increase in freight rates will lead to a higher cost of importation and could lead to imported products being more expensive, for example, at the supermarket."
"We have been talking about supply chain disruptions and supply chain resilience for some time, as well as possible solutions. When we see a trading partner, like the United States, impose these tariffs, then we see an immediate negative effect."
"Business can mitigate this by mapping their supply chain, giving them a better chance to prepare and respond in this situations like this."
Dr Vinh Thai is a professor of logistics and supply chain management, specialising in maritime logistics. He is the founder of the Australian Maritime Logistics Research Network.
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