The final quarter of 2018 has brought an escalation of trends that are putting pressure on global trade and volatility in supply chains. What started as a tariff dispute earlier this year, has progressed into a full-blown trade war potentially impacting all Chinese imports into the US and most US exports to China.
While the Chinese economy has seen a slowdown and further depreciation of their currency, so far, the US economy has seen no downside to the trade war – stock markets are robust, and the dollar is at a near-term high.
Things could change in the new year though, as consumer goods become more expensive and other countries impacted by the tariffs feel the pinch.
Below are some highlights from the report :
- Manufacturing in many emerging economies has slowed.
- A strong US dollar has put pressure on input costs and increased export prices.
- China’s economy saw slower than expected growth in Q3 and the RMB depreciated further.
- Oil prices reached 4-year highs, but other commodities were more volatile.
- Shipping companies have reduced capacity to offset lower demand.
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!