We been receiving some questions recently about how the Trump tariffs will impact our supply chain. With growing concern, we feel this is a good opportunity to update you on how the current and proposed tariffs may affect our business and our customers’ bulk bag supply.
Direct Impact
We have not yet been and do not predict to be directly affected by these new tariffs, as we do not source significant quantities from any of the affected countries (Canada, Mexico, and China). With our primary partners being located in India and with U.S. / India relations being strong, the threat of new tariffs being imposed against India as a whole or on FIBCs specifically is very low.
Indirect Consideration
As some U.S. distributors have continued to rely heavily on China and/or Mexico for their FIBC production, we will likely see some shifting of their production capacity from those countries to India to avoid increased costs from the new tariffs. This increase in demand from India could create a slight imbalance in supply and demand, potentially leading to extended lead times from Indian manufacturers. If affected, we would expect any disruptions to be minimal and short-lived.
Secondly, with overall U.S. imports from China expected to decline as a result of the imposed tariffs, we are predicting an imbalance in China to U.S. ocean freight, which could disrupt the flow of equipment, leading to displacement of ships and containers. Again, if affected, the delays and possible increases in ocean costs would likely be short-lived.
We appreciate the continued support and trust our customers put in FlexSack to proactively manage potential disruptions within our supply chain.
If you have any questions regarding the impact on your specific bag supply, please contact your sales rep directly or reach out to us at Sales@FlexSack.com.