Supply Chain News Roundup: Tariffs Are Still Here and Changing
The Trump administration on Monday modified Section 232 tariffs for some imports of steel, aluminum and copper, lowering duties from 25 percent to 15 percent on such products as agricultural machinery like combines and harvesters.
A Whie House fact sheet states: “Today, President Donald J. Trump signed a Proclamation adjusting certain metals tariffs to more effectively address national security threats, spur investment in American agriculture, housing and manufacturing, and facilitate U.S. production of related products.”
A few hours later, the administration cited unfair trade practices per Section 301 of the Trade Act of 1974 in a proposal to raise tariffs on Brazilian goods to 25 percent. An Office of the U.S. Trade Representative (OSTR) hearing on the proposed action is slated for July 6.
The OSTR reported “that certain of Brazil’s acts, policies and practices related to digital trade and electronic payment services; unfair, preferential tariffs; anti-corruption enforcement; intellectual property protection; ethanol market access; and illegal deforestation are unreasonable and burden or restrict U.S. commerce, and are thus actionable under Section 301(b) of the Trade Act.”
The two countries have met several times in an attempt to reach an agreement.
In other supply chain news:
AI roles. With AI adoption rising, it makes sense that supply chain roles would change — with new roles, new responsibilities and new skills coming on board and redundant roles on the way out.
A Gartner survey has found that only a little more than a third (36 percent) of CPOs are “very confident” that they can redesign roles and processes around AI.”
The Stamford, Connecticut-based business and technology insights company surveyed 101 CPOs earlier this year, finding some individual AI productivity gains but few company-wide impacts.
“Procurement teams are seeing productivity gains from GenAI, but without intentional redesign of roles and processes, those gains remain confined to the individual level,” Fareen Mehrzai, senior director analyst in Gartner’s supply chain practice, said in a press release.
“To improve returns on their AI investments and unlock organizational gains, CPOs must design next-generation human roles focused on guiding AI toward achieving real financial outcomes, rather than mere efficiency gains.”
Sailing dark in the Strait of Hormuz. With help from American forces, commercial vessels are traveling into and out of the Persian Gulf, The New York Times reported. About 70 ships have reportedly passed through the Strait, with most turning off their transponders to avoid detection.
“Ships passing near Iran without obtaining Iranian approval face the threat of an almost-certain attack by Iranian drones or missiles, U.S. officials said,” stated the Times article. “Shipping analysts say the U.S.-guided crossings appear to follow routes that are closer to Oman.”
Fuel availability. A CNBC article cautions that oil exports may never return to levels before the war with Iran. Especially if Iran retains control of the Strait of Hormuz.
“Any end to the conflict that leaves Iran exercising operational control and influence over the Strait will result in appreciably lower flows through the waterway in our view,” Helima Croft, head of global commodity strategy at RBC Capital Markets, told CNBC.
(Photo credit: Getty Images/Cristian Lourenço)