We all know US President’s Trump’s plan to impose an international law regarding tariffs and taxes, people have been babbling about its possible impact on the international shipping. Technically, it can be huge – which is why freight forwarding companies all over the world are dwelling too much on this issue.
So, what could possibly the big effects of this international law, once it is imposed?
This trade war, according to Trump, is easy to win but is it, really?
Over 90% of the world’s trade is operated at sea. The volume of it is vast and it has always been like that since ancient times. It is also free – there are free trade agreements that proved positive proofs of the development of the international trade, which just raised people’s questions as to why is this international trade still relevant.
Trump said that the tariffs would be 35% on Mexican imports and 45% on Chinese imports. All the companies that import these goods will face higher taxes.
The overall impact of this law can affect the shipping of all products from different parts of the world which can also affect the consumers, shippers, companies, and all involved in the industry.
It is said that there will be struggles ahead in the shipping industry. The effect can be both slowdowns in the trade or over capacity. It’s actually not easy to foresee if ports will still have enough space when this agreement is implemented anytime soon.
If you think, however, that this trade agreement will only affect the shipping industry, well, the consumers will be the ones to feel the effects firsthand because the prices of imported goods such as clothes, electronics, etc., will have them to pay more.
There are a lot of allegations and uncertainties that come along with US President’s Trump’s international trade laws and being knowledgeable about it is a first step to being prepared for it.
As a renowned freight forwarding company in Dubai, however, we are well equipped with the issues of the shipping industry today and we can let you rest assured that the services we offer like freight services and warehouse storage in Dubai, will not be too affected and we’ll still do our best to give you what you need.