US-Canada Tariff War Escalates: 15-50% Duties Reshape Supply Chains

What if tariffs remain at 15-50% for the next 6 months?

Model sustained tariff scenario on all Canadian imports of steel, paper, electronics, and dairy products at current rates. Simulate impact on procurement costs, inventory carrying costs from potential pre-tariff stockpiling, supplier margin compression, and potential price increases passed to end consumers. Evaluate alternative sourcing from Mexico or overseas suppliers as mitigation.

What if further retaliatory rounds escalate tariffs above 50%?

Simulate escalation scenario where tariff rates exceed 50% on Canadian goods and US counter-retaliations affect Mexican trade. Model cascading sourcing failures, supplier diversification urgency, lead time expansion from non-North American suppliers, and inventory hedging strategies. Evaluate capacity constraints from sudden demand spikes on alternative suppliers outside North America.

What if companies need to reroute inventory away from Canadian distribution hubs?

Simulate supply chain reconfiguration requiring rerouting of goods around Canadian cross-border distribution centers. Model increased transportation costs from longer routes, service level impact from transit time extension, warehouse capacity pressures in US-based alternatives, and inventory deployment timing changes. Evaluate cost trade-offs between tariff exposure and logistics cost increases.