Biggins Lacy Shapiro & Company, LLC

U.S.-China Trade War, Practical Solutions for Companies

BLS & Co. was pleased to co-sponsor an executive discussion on managing the U.S.-China trade war with our Asian partner firm, Tractus, and their partners, PRI, and Dorsey & Whitney LLP. The event was hosted by Clayco in Chicago. 

The trade tensions between China and the U.S. have been wreaking havoc with the supply chains and cost structures of companies caught in the middle. Costs of key inputs have risen 10 to 25 percent overnight for some companies. With no end in sight, operational and investment planning is difficult, if not impossible. The event’s presentations and discussions were focused on practical approaches to weathering the turmoil. These practical approaches included applying for exclusions, avoiding risk by being strategic with your footprint, and distributing cost through the supply chain. 

Key takeaways included: 

  • The person managing your HTS codes must be a strategic thinker – tariffs have become C-Suite issues. 
  • The world’s trade environment is compelling companies to utilize multiple, smaller, more automated facilities rather than one mega facility to serve world demand.
  • Companies still need to be in both markets, but they also need a “+1” market as a stabilizer.
  • ASEAN and India are viable markets and manufacturing alternatives to China.

There was more, much more…

We hope to do the event again in Chicago and potentially other markets. Many thanks to presenters John Evans, Tractus; Dave Townsend, Dorsey & Whitney LLP; and Dwight Nordstrom, PRI.

Published: 11/12/2019
Biggins Lacy Shapiro & Company, LLC