The growing uncertainty around tariffs is making it increasingly difficult for companies to plan their operations, leaving many in a state of “paralysis,” according to Flexport CEO Ryan Petersen, Business Insider reports.
Speaking on the Logan Bartlett Show, Petersen described how businesses are struggling to navigate an unpredictable trade environment, particularly after former President Donald Trump imposed tariffs on key trading partners like Canada and Mexico.
“Frankly, the number one reaction I see right now is a bit of paralysis—people not wanting to make a decision until there’s more clarity,” Petersen said.
Since taking office, Trump has announced sweeping tariffs on the United States’ three largest trading partners—China, Canada, and Mexico—as well as other nations.
- A 25% tariff was placed on all imports from Canada and Mexico, though some measures were suspended shortly after implementation.
- China, Canada, and the European Union (EU) retaliated with their own tariffs on US goods.
- Canada imposed a 25% tariff on US products, while China levied a 10-15% tariff on agricultural goods.
- The EU targeted American exports, including a 50% charge on US whiskey, prompting Trump to threaten a 200% tariff on European alcoholic beverages.
- Even at a regional level, Ontario introduced a 25% surcharge on electricity supplied to Michigan, Minnesota, and New York.
These ongoing trade disputes have made supply chain planning increasingly complex, as businesses remain uncertain about which countries will be impacted next.
“You should expect tariffs can come for any country, so that’s making planning really, really difficult,” Petersen noted.
Many companies are actively working to adjust their supply chains in response to the shifting trade landscape.
- Pharmaceutical giant Pfizer is considering moving some drug manufacturing back to the US.
- Retailers like Ralph Lauren, Steve Madden, and Yeti have signaled plans to reduce their reliance on Chinese manufacturing.
However, businesses remain hesitant to make major decisions until there is greater clarity on long-term trade policies. Petersen believes that a quicker resolution would help companies adapt.
“My advice would be get it over with quickly so people could figure out what the new normal is,” he said.
