Trump's China Trade War Reignites: Supply Chain Impact

What if 25% tariffs are applied to all Chinese imports?

Model the impact of a 25% ad valorem tariff applied across all current Chinese suppliers. Calculate total landed cost increases, identify products with highest tariff exposure, simulate supplier switching feasibility to Vietnam, India, Mexico, or domestic sources. Assess inventory buildup strategies before tariff effective dates and evaluate customer price increase scenarios.

What if customers refuse price increases and margins compress by 3-5%?

Model revenue and margin impact if tariff-induced cost increases cannot be fully passed to customers due to competitive pressure. Simulate margin compression scenarios of 3%, 5%, and 8% across affected product categories. Assess volume impact, profitability by SKU, and identify products requiring sourcing or design changes. Evaluate strategic response: nearshoring, product simplification, or portfolio rationalization.

What if supply chain shifts to Vietnam and India, extending lead times by 3-4 weeks?

Simulate demand planning and inventory policy adjustments if diversification away from China extends average supplier lead times from 6-8 weeks to 10-12 weeks. Model impact on safety stock requirements, reorder points, and working capital. Assess service level targets and whether expedited air freight or nearshoring is cost-justified. Evaluate inventory positioning strategies before transition.