Viewpoints with Burkhard Varnholt - A global markets podcast (Ep. 30)

Impact of Tariffs on Supply Chains and Commodities

Tariffs are significantly influencing global supply chains and commodities, as companies scramble to adjust to expected changes. A logistics CEO shared that businesses are now opting for air freight over shipping as a preemptive measure to avoid impending tariffs, marking a shift to what he calls 'just before tariffs' supply chains. This preemptive behavior has led to a notable increase in U.S. imports, reaching $3.5 trillion, while commodities like copper have seen price surges, indicating stronger economic activity. Despite the widespread concern about tariffs potentially driving inflation, it’s crucial to distinguish the exaggerated claims from substantive economic indicators, as the reality of tariff impacts is often overstated.