Surviving the Trade War - What to do in a State of Uncertainty?
Updated: Dec 16, 2019
The last 12 months under Donald Trump’s presidency have spelled uncertainty for American manufacturers, U.S. citizens, and the world. Whispers of a trade war persist as America imposes tariffs on countries we’ve long had good trade relations with, like Canada, China, and the EU. Additionally, we’ve imposed sanctions that could destabilize the Iranian economy as well as economic uncertainty in South America and Mexico.
So, what's a trade war?
A trade war happens when countries retaliate against one another by adding tariffs and imposing restrictions on trade. Trump made headlines when he unexpectedly imposed steep steel tariffs on China; since then, the Chinese government has acted in the interest of stabilizing their own economy while working out an agreement with Trump. The leaders will meet in the United States to ink a deal, but today, uncertainty remains.
What can you do to mitigate this situation as an American business owner? Here are some things to consider:
Stay informed: News about American trade relations rolls out daily. Stay on top of the latest in trade relations by setting up Google Alerts and finding the most reliable sources of information on the web.
Find alternative suppliers: This might be more of a challenge for small companies, but not impossible. Look to new suppliers in different countries around the world to acquire currently-tariffed products like steel.
Explore new markets: Diversify your financials by creating new lines of business that are in markets less impacted by the trade war.
Following these tips can help you stay ahead of the trade war as we all keep our eyes on relationships between the Trump administration and countries serving as our trading partners.
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