Impact of Tariffs on Global Supply Chains

The 90-day pause on Donald Trump's tariffs is ending, causing companies like Learning Resources to shift production from China to Vietnam and India. Canadian businesses are also feeling the effects of retaliatory tariffs. The uncertainty surrounding tariffs is forcing companies to rethink their supply chains and potentially raise prices.

Jul 7, 2025 - 11:16
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Impact of Tariffs on Global Supply Chains

A 90-day pause on Donald Trump's sweeping tariffs plan is about to expire on Wednesday, which could upend US trading relationships with the rest of the world. But the uncertainty of the last few months has already forced several companies to rethink their supply lines in radical ways.

When an Illinois toymaker heard that Trump was introducing tariffs on Chinese imports, he decided to sue the US government. Rick Woldenberg, CEO of educational toy firm Learning Resources, saw his import taxes bill leap from around $2.5m a year to more than $100m in April. To mitigate the impact, Learning Resources is moving production from China to Vietnam and India.

Many Canadian companies are facing a double hit to their supply chains due to tariffs imposed by both the US and Canada. Businesses worldwide are considering exporting less to the US due to increased prices caused by tariffs.

Learning Resources has moved about 16% of its manufacturing to Vietnam and India. The company is also continuing its legal battle against the US tariffs.

Global supply chain expert Les Brand highlights the challenges and costs associated with switching manufacturing to different countries. Canadian fried chicken chain Cluck Clucks has been impacted by Canada's revenge tariffs on US imports, affecting its supply chain and menu offerings.

Cluck Clucks CEO, Raza Hashim, mentions the potential price increase for their food due to higher costs of US fridges and the strategic decisions made to navigate tariff uncertainties.

According to the source: BBC.

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