As the second half of the year progresses, tariff wars are a dark shadow looming over global trade. While the impact to retail global sourcing and economic growth has been limited so far, the threat of escalation could change things. Potentially $500 billion of imports from China could face 10% or higher tariffs.
Meanwhile, China’s imports from the US are only around $130 billion, so it will be difficult to match these tariffs. Analysts expect China to hit back with delayed approvals to investment inflow, additional customs inspections and boycotts of American brands.
Below are some highlights from Q3 2018 Retail Sourcing Report.
- Global manufacturing conditions were relatively strong.
- Commodity prices, led by oil, saw increases fueled by geopolitical uncertainty.
- The Chinese economy dipped somewhat, but continues in growth mode.
- The US dollar made strong gains through Q2 and into Q3, with depreciation in the Chinese Yuan and softening in the Euro.
- Container shipping rates look to remain steady with some threat of overcapacity and potential impact due to tariff increases.
The CBX Retail Sourcing Report provides research and analysis aimed at informing global retail sourcing, supply chain and buying decisions for retailers, brands, wholesalers, traders and other sourcing professionals. Each issue includes a snapshot of key information and trends impacting global retail sourcing, such as economic conditions in sourcing countries, container shipping trends, currency exchange and commodity rates. We also cover hot topics ourselves and include insight from analysts and other experts. For more information on how the retail industry will be impacted by the escalating U.S. and China trade war and for other retail sourcing related topics read the full Q3 Retail Sourcing Report, today!