Nikonomics - The Economics of Small Business
163 - Supply Chain Meltdown: Tariffs, Shortages, and the New Trade War with Craig Fuller
May 2, 2025
Craig Fuller, a serial entrepreneur and founder of Sonar and FreightWaves, dives deep into the chaotic world of supply chains. He explains how unexpected tariff hikes are causing turmoil, highlighting the lag between order and delivery that’s piling freight up. Fuller shares insights on why U.S. importers are seen as credit risks, and discusses looming shortages and potential layoffs in the trucking industry. Entrepreneurs are urged to adapt as trade dynamics shift rapidly, emphasizing the need for strategic sourcing and compliance in this unpredictable landscape.
01:16:53
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Quick takeaways
- The unexpected steep tariffs, particularly a 145% hike, have drastically impacted import costs, causing businesses to pause orders and face supply chain disruptions.
- Upcoming supply chain shortages are anticipated, especially in essential items for back-to-school shopping, highlighting a significant risk to the retail market.
Deep dives
The End of Hope as a Business Strategy
Running a business based on hope of government bailouts is unrealistic and unsustainable. The global trade landscape has drastically changed, resulting in a significant risk for American businesses facing a permanent shift in trade dynamics. Entrepreneurs must accept that they cannot rely on external saviors but must adapt to the new realities. The emphasis must be on proactive measures rather than waiting for government intervention.
