US supply chains face more tariffs and renewed Red Sea conflict

Tariff threats and renewed Red Sea conflict put supply chains under pressure

The latest wave of tariff threats is likely to increase stress on supply chains after a brief easing in May. This is driven by approaching tariff deadlines and renewed disruption in the Red Sea shipping route.

What you will learn in this report:

• Trade policy uncertainty is not going anywhere. President Donald Trump recently announced higher tariffs are coming on a range of trading partners on August 1 and threatened to crack down on transshipped goods, which will be challenging to enforce.
• Copper tariffs: A 50% tariff on copper starting August 1 could lead to front-loading, complicating July data. Over time, higher tariffs may boost demand for domestically sourced copper and increase US mining activity.
• Red Sea conflict: Recent attacks on commercial ships in the Red Sea put some upward pressure on oil prices and will increase the share of shipping that avoids this chokepoint. This could push freight rates higher and increase the risk that supply-chain stress becomes inflationary.
• Inflation risk: These factors combined may increase supply-chain stress and add inflationary pressure.

Download the report to explore the impact of rising tariffs and the Red Sea conflict on supply chains.