International Shipping Association warns: Don't let Trump be elected president of the United States!

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2024-08-16 18:33

”“Trump Returns to the White House: A Potential Disaster for Global Supply Chains”

Recently, the International Shipping Association (ICS) issued a warning not to let Donald Trump be elected president of the United States again.

ICS Warns Against Trump Presidency Shipping chief warns of the dangers of a Trump presidency to trade.

Regardless of who wins the presidential election in November, the International Chamber of Shipping (ICS) is concerned that rising economic nationalism in the United States could undermine global trade.

But the president of the International Chamber of Shipping (ICS), Guy Platten, said in a recent interview with the Financial Times that Trump's return to the White House could spell disaster for global supply chains.

Guy Platten believes that the election of Donald Trump may lead to an “escalation” of trade protectionism.

Guy Platten claims that Trump's “America First” stance “only encourages everyone else to do the same,” which would undermine “the entire natural order of international law and the set of accepted rules” on which trade functions.

At the same time, shipowners are also particularly worried about the protectionist comeback of Republican candidate Donald Trump.

Donald Trump

Donald Trump In addition to having a negative impact on world trade, the outcome of the US election will also affect the activities of global shipping companies.

One reason for the strong demand in the United States and Europe is that shipowners want to protect themselves from future punitive tariffs, especially on Chinese goods.

However, the current US administration has also used the tariff weapon. Platten noted that Biden and Harris have begun to impose punitive tariffs on Chinese-made electric vehicles.

Although Biden announced his withdrawal from the US election, he expresses his full support and endorsement of US Vice President Harris for the nomination of the Democratic presidential candidate.

It is reported that as early as when Biden had just announced his withdrawal from the election, analysts say it could have a big impact on the container shipping market in terms of where Trump stands and the political campaign supporting him. Of particular note are two aspects: trade tariffs and Red Sea escorts.

If the new Trump administration significantly increases trade tariffs,the most likely outcome will be more shifts in supply chain models.

Over the past few decades, it has often been seen that trade tariffs simply move production to other low-cost countries rather than moving production “domestically.” Alternatively, it would lead to a more complex supply chain in which an additional country is inserted to change the “nationality” of the goods in order to circumvent tariffs.

In addition to making imported goods more expensive in the United States, thereby depressing consumer spending and pushing up inflation, the most likely outcome of an intensification of the trade war will be a shift in supply chains, requiring ships, ports, trucks, and warehouses to do more work.

In addition, from a shipping perspective, Trump's election could lead the US Navy to withdraw its support for a conflict in the Red Sea.

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