Global trade chaos

TARIFF HIKES: COULD LEAD TO RISING COSTS AND ECONOMIC FALLOUT

- Anathi Madubela

President Donald Trump announced plans to impose a minimum 10% tariff on all US imports, with even higher duties targeting key trading partners. This move is disrupting supply chains, causing delays and congestion reminiscent of those seen during the Covid pandemic.

A 30% levy was imposed on goods imported from South Africa. Agricultural Business Chamber (AgBiz) fruit desk manager Wolfe Braude said: "The 10% levy kicks in soon and the country levy kicks in in a week's time. In terms of global supply chains, a lot of people have been forward buying in advance of this and front ordering.

American buyers who have the cash have tried to order up front, and so it has been causing some supply chain congestion."

The base tariffs go into effect tomorrow and the higher reciprocal rates on Wednesday.

Braude noted that the entire global supply chain would need to be reworked as countries find alternative export markets.

"This will cause enormous confusion, and it will probably interfere with the shipping rates as well because the logistics business is finetuned. It might result in some exporters having challenges getting bookings [and] delays to exports. It might be a bit like the Covid congestion," he said.

Dr Ernst van Biljon, programme coordinator in supply chain management at the IMM Graduate School, said the announcement heightened uncertainty and increased costs for global supply chains.