How tariffs are shifting global supply chains

July 6, 2025

As Donald Trump's 90-day pause on sweeping tariffs approaches its Wednesday expiration date, companies worldwide are already restructuring their supply chains in response to the trade uncertainty. Illinois-based Learning Resources, facing a projected increase in import taxes from $2. 5 million to over $100 million due to the 145% tariffs on Chinese imports, has begun moving production to Vietnam and India where tariffs are currently lower at 10%.

Who is affected

American importers like Learning Resources and other companies relying on Chinese manufacturing
Canadian businesses facing reciprocal 25% tariffs between the U.S. and Canada
Canadian fried chicken chain Cluck Clucks, which imports specialized equipment from the U.S.
Spanish olive oil producer Oro del Desierto and other European exporters to the U.S.
American consumers who will likely face higher prices for imported goods
Factories and workers in Vietnam and India receiving relocated manufacturing

What action is being taken

Learning Resources is moving 16% of its manufacturing from China to Vietnam and India
Learning Resources is pursuing a legal case against U.S. tariffs that is currently working through the court system
Cluck Clucks is stopping purchases of U.S.-made pressure fryers and limiting menu offerings at new stores
Companies are passing increased tariff costs to American consumers
Oro del Desierto is considering reducing U.S. exports and redirecting products to other markets

Why it matters

Tariffs are drastically increasing costs for U.S. importers, with Learning Resources' projected import taxes rising from $2.5 million to over $100 million
Companies are forced to reorganize global supply chains at significant expense
The uncertainty about future tariff policies makes business planning difficult
Menu limitations and potential price increases affect consumer options and costs
Reshaping supply chains requires substantial time investment, quality testing, and knowledge transfer
Moving manufacturing affects businesses' focus and impacts their already "razor-thin margins"

What's next

No explicit next steps stated in the article

Read full article from source: BBC