Threat of implementing new tariffs by United State can change
the way of operation of a supply chain decision. If the tariff
implemented additional burden on imports or any other activity then
the supply chain decisions would be preferred to an alternative
locations where availability of the tariff is relatively less. As
this type of availability increase the overall expense in the
supply chain management, organisations would ship to other
countries that would reduce the overall economic valuation of
America in terms of proper service generation. Due to
unavailability of business opportunities, this organisation would
face a drastic impact in its operation and this type of
unreliability would decrease the overall chance is a positive
outcome in the operation economic environment.
As company could be affected by shifting its supply chain to
another place, suppliers and other service providers would also be
affected due to implementation of new tariffs by United States of
America. For creating a balance, understanding a location
importance as well as distance from the supplier from the nearest
possible location where tariffs are relatively low would be the
main criteria of choosing new location.
P.S.- please leave a comment if any explanation is
needed.