While market windings from the news of the chairman Donald Trump’s tariff, the Flexport Executive Director Ryan Petersen, described in detail how his customers deal with unstable global trade environment in an interview with CNBC on Monday with CNBC Jim Cramer.
“It is very difficult to plan a supply chain when changing day by day, so I think it’s really hard for these companies to understand, you know, what the government will do and how they should set themselves up,” he said. “It is possible that it will lead to higher prices, for a wide consumption goods, but there are all kinds of variables that can lower taxes or bring, create a simpler regulatory frame that could increase demand.”
Flexport offers services that help companies manage the global logistics of a supply chain. According to Petersen, the company’s user’s base is trying to introduce more and more goods as they expected escalating duties, especially with China. Through weekendTrump has announced tariff hikes for some of the main American commercial partners, China, Canada and Mexico. Petersen said that the time line for these changes was “unprecedented”, because even during Trump’s first administration, there were at least a month notifications before they entered into force. So, he said he wasn’t surprised when the president finished pausing It increases in Mexico a month on Monday. Later in the evening, Trump too announced He would do the same for Canada.
Petersen called Trump’s administration roll off From the “de minimis” of trade exemption “Great Change”. This provision, which is often viewed as a trading hole, allowed exporters to send goods directly to consumers and less than $ 800 without customs, and were often used by companies such as theme and Shein. In addition to the Chinese giants for the e-commerce, Petersen said that 30 of the hundred brands of Shopify also imported this way.
All these Trump changes can change the trade landscape in other ways, Petersen added. He said the price of air cargo could be significantly reduced if Shein and the topic no longer deliver in their current quantity. Peterson also said Houthi rebels have launched To “retreat” a little because of its serious trade disorders in the Red Sea, perhaps because of the fear of acting from Trump’s administration. He said there were “rumors and conversations” that containers could start passing through the Red Sea again, which would bring down the price of Ocean Freight.
“It’s hard to act in a really simple black and white world when a global trade is this complex,” Petersen said.
