Tariff Developments Watched Closely by Florida-based iContainers

Freight intermediaries will be keeping a close eye on tariff developments, says 100% online freight forwarder, iContainers.

President Donald Trump recently claimed he was ready to impose tariffs on all $500 billion imports from China. This follows the implementation of tariffs of 25% on $34 billion worth of mechanical and technological Chinese imports with tariffs on another $16 billion reportedly being negotiated.

These developments are worrying for U.S. importers and other supply chain stakeholders, who could be hit hard should these threats become reality, said spokesemen for the Florida-based freight iContainers.

So far, however, demand for its services for U.S.-bound Chinese imports has so far not been affected.

“We have had next to no comments about it from our clients,” says Klaus Lysdal, vice president of operations at iContainers. “In fact, the China lanes have stayed pretty busy.”

In an interview with SCMR, Lysdal notes that because Florida is one of the top ten exporting states in the nation, he expects it to be hit harder by a trade war than some parts of the country with more domestically based industries.

“Quite simply because international trade makes up a larger share of Florida’s GNP,” he says. “But a smaller state like South Carolina is also likely to be hit hard as it exports just as much as Florida.

He adds that his company is already seeing potential issues for the U.S. economy as foreign companies are making contingency plans and simply moving their exporting operations overseas.

“For example, some of the foreign automakers that produce vehicles here and export straight from here are likely to move some of that production to other facilities overseas and only handle production for the U.S. market here,” he says. “That can mean cutbacks in their factories here. And decreased export volume.”

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