Trade deals have a tendency to resemble the game Jenga. Why? Balance. Winners and losers. People flipping tables and pelting each other with objects when things go wrong.
If you’re shipping in or out of the Asia-Pacific, President Trump’s proposed on Chinese imports are about to make things…spicy. With a 10% tariff slapped on a massive chunk of goods, and a 60% tariff on specifically Chinese goods, everyone in the region is bracing for impact like a captain seeing an iceberg (and yes, you’re the captain in this metaphor).
Super Fast Summary of the Proposed Tariffs
"Forget it, Jake. It's Chin--(ese goods being taxed higher than before.)"
Here's an even easier to understand summary: if something is coming from China, expect a price increase / surcharge --think of it as a surprise entry fee for playing the import game.
Here's What's PROBABLY Going to Happen
"I see stormy seas in your future... tariffs on goods imported to the United States. Oh also your yearly colonoscopy. Gosh I wish I hadn't seen that."
You might be surprised to learn that we weren't born with fortune telling powers (if that were the case, we'd be living our dream of performing as freaks in a circus side-show, instead of writing slightly humorous blog posts and running a 3PL / fulfillment center).
We can’t predict the future, but based on Trump’s 2018 tariffs, we can make some educated guesses about what’s going to happen once the new tariffs start to take effect. Here’s what's likely to happen:
1. Southeast Asia Gets Popular, Fast
Companies scrambling to avoid the China tax will flock to Vietnam, Malaysia, and other neighbors like it’s the Black Friday sale of manufacturing. Places where manufacturing prices are still cheap, and labor laws are... iffy.
2. Your Costs Are Going To Go Up
Here’s the math: tariffs + rising shipping costs = lighter wallets and possible weight-loss from tears shed.What we're about to say should be pretty obvious: freight rates are already climbing, and with inflation tagging along for the ride, 2025’s logistics scene will feel a bit like the Hunger Games --except instead of stupid 'will-they-won't-they' teen romances and fighting for food, companies will be fighting for cheaper manufacturing and shipping rates.
3. Delays Will Be the New Normal
Here at Mix-Mix Mail, we don't like the term "New Normal" (something about it really grinds our gears). Some people despise the word "yolk". Other people don't like the word "moist". We irrationally hate the phrase "New Normal".
But yeah, delays are going to be the "New Normal".
Picture this: ports, customs offices, and supply chains all caught in a chaotic, slow-motion game of musical chairs. Only, when the music stops, your shipment is still in the wrong country. Prepare for frazzled delivery men... prepared for long wait times... prepare to be a little bit salty sometimes... at least for the first quarter or two after the tariffs come into effect.
Conclusion
You know what they say about keeping all of your eggs in one basket. Who even keeps eggs in baskets these days, anyway?
- Diversify your supply chain. Beat the rush before everyone else realizes they’re late to the game.
- Anticipate higher costs. Adjust your pricing and prepare your customers for sticker shock.
- Explore local fulfillment options. Because shipping from halfway across the planet is about to feel like trying to win the lottery.
P.S. If you’re shipping to Asia or North America, Mix-Mix Mail can help keep your business afloat while everyone else panics. Just don’t ask us to fix global trade—we can only do so much.