Navigating Uncertainty: Businesses Maneuver Amid Trump's Tariff Threats

ICARO Media Group
Politics
08/11/2024 19h46

**Businesses Scramble as Trump Tariff Threats Loom**

In response to the looming threat of steep tariffs promised by President-elect Donald J. Trump, companies are scrambling to mitigate potential financial impacts. One such business, Deer Stags, a shoe company co-owned by Rick Muskat, is taking decisive action.

The morning after the election, Muskat promptly contacted his agent in China at 4:30 a.m. Beijing time. His urgent request: to find out how many more pairs of men's dress shoes their factory could produce before the Chinese New Year at the end of January. "I told them if they could make an additional 30,000 pairs, we would take that," said Muskat. This move was not driven by a sudden spike in demand but by the impending tariffs on Chinese imports that Trump has vowed to implement.

Muskat took this step to stockpile shoes in the U.S., aiming to dodge some of the tariffs that might be put in place as Trump assumes office in January. "We're going to take whatever they can make," he added.

Trump's election has disrupted global supply chains as companies face his plans to hike tariffs on foreign goods. Trump has suggested various tariff rates, including a 10 to 20 percent tax on most foreign products and a striking 60 percent tariff on Chinese goods, levels not seen in generations. The specifics of these tariffs remain unclear, leaving businesses in a state of uncertainty regarding which countries and products will be affected and when these measures will be enacted.

Executives, not waiting for the specifics, are taking proactive measures. Some, like Muskat, are increasing inventory in their U.S. warehouses ahead of potential tariff enforcement. Others are hastening plans to relocate production out of China, seeking advice from lobbyists and lawyers in Washington, and convening board meetings to discuss the possible implications of Trump's tariff threats on their operations.

As the inauguration approaches, businesses continue to navigate this uncertain landscape, attempting to secure their supply chains against significant disruptions.

The views expressed in this article do not reflect the opinion of ICARO, or any of its affiliates.

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