**Global:** Businesses worldwide are already adapting supply chains following Donald Trump’s re-election, anticipating stricter US trade restrictions, tariffs on Chinese imports, and seeking diversified manufacturing to mitigate risks and maintain efficiency amid evolving policies.
Donald Trump’s recent electoral victory is already influencing global supply chains, with several companies proactively adjusting their production strategies in anticipation of potential changes in US trade policies. Throughout his campaign, Trump pledged to impose extensive trade restrictions, including broad import duties and tariffs on goods from China that could range from 60% to 100%.
This prospect has prompted a variety of responses from businesses worldwide. While many companies have adopted a cautious “wait-and-see” approach, monitoring the administration’s forthcoming policies before finalising any strategic shifts, others have begun to implement changes to safeguard their operations.
Oliver Chen, an analyst with TD Cowen, commented to Business Insider, “I don’t think anybody’s surprised. The probability factor was high for either side,” highlighting that many firms had anticipated these developments given Trump’s previous administration’s trade stance, particularly toward China. This prior experience has already encouraged companies to pursue more flexible sourcing options.
Some firms see the situation as a repeat of past challenges. Matt Meeker, CEO of subscription service Bark Box, described Trump’s re-election as “a bit of Groundhog Day for us,” indicating continuity in trade dynamics.
Prior to Trump’s nomination, numerous companies had already been exploring alternatives to relying heavily on Chinese manufacturing by identifying partners in other Asian countries or by near-shoring production closer to the Americas. This approach is intended to mitigate risks associated with tariff increases and supply chain disruptions.
Among the companies moving ahead with supply chain adjustments is Premier Inc., a healthcare provider offering products like face masks and isolation gowns. CEO Michael Alkire revealed that Premier has been relocating production of key items closer to the United States as part of a years-long effort to reduce dependency on Southeast Asian manufacturing hubs. He also noted that the company’s partners are urging them to continue seeking sourcing options less vulnerable to tariffs.
Similarly, Fortune Brands, a conglomerate owning brands such as Moen plumbing fixtures and Yale locks, has been revamping its supply chain since tariffs were introduced in 2017. CEO Nick Fink explained, “We’ve moved away almost everywhere from single source. Your secondary source may cost you a bit more than your primary source, but if your primary source were to become more expensive because of tariffs, you can dial that down and dial up your secondary source and rebalance it to be the most efficient.” He added, “We are very well positioned to handle increased tariffs. We don’t invite it because it’s a lot of hard work.”
Outdoor lifestyle brand Yeti began production at a second, non-China factory earlier this year and plans to open a third facility soon. The company aims for half of its drinkware production capacity to be outside of China by the end of next year.
Similarly, Clarus, a maker of outdoor equipment and lifestyle products, continues to produce some items in China — including its Black Diamond headlamps and footwear — but is actively shifting more production to Vietnam and other countries. Neil Fiske, president of the Black Diamond brand, stated that if tariffs on China increase significantly, the company is prepared to accelerate orders: “We may end up hedging inventory a little bit to buy us consistency in our pricing as we diversify,” he said.
In the electric vehicle sector, Rivian’s founder and CEO Robert Scaringe highlighted the company’s careful selection of suppliers believed to be less exposed to large tariffs. Rivian also writes contracts to minimise risk related to tariff changes. “What’s going to be interesting is how far this reaches into the upstream supply chain,” Scaringe remarked, referring to raw materials such as steel and lithium, “That’s something that every manufacturer, certainly ourselves included, are thinking about.”
On the logistics front, Jim Filter, executive vice president of Schneider National, a US trucking and logistics firm, noted that while clients have yet to query about strategies to counter tariffs, any future requests could accelerate supply chain adjustments. Currently, Filter explained, “Our customers are really operating just under normal replenishment cycle, preparing for this holiday push.”
Overall, the election outcome is exerting an immediate influence on business supply chains, prompting companies to either prepare for or actively engage in modifications that could affect global manufacturing and sourcing strategies. The continuing developments in US trade policy under the new administration will likely determine the extent of further changes across various industries.
Source: Noah Wire Services
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