Latest news with #globalisation
Yahoo
a day ago
- Business
- Yahoo
Tariffs driving supply chain localisation and automation
The tariffs being introduced by the Trump administration in the US and the subsequent counter tariffs elsewhere are leading companies to localise and automate their supply chains in mitigation, a new report outlines. GlobalData's Impact of Tariffs on Supply Chains report states trade tensions caused by the sudden and rapid rollout of new tariffs will end the era of hyper-globalisation. It suggests that, while globalisation will continue, it will look very different. 'In the short term, tariffs will impact demand and inventory planning,' the report explains. 'To avoid initial tariff hikes, companies increased inventories in the US. Carrying larger inventories will become best practice if tariffs continuously increase, resulting in recurring price hikes for goods and services. Maintaining large inventories can be costly if demand declines rapidly. GlobalData expects demand to stay stable until the end of 2025 but may begin to dip in 2026 if the US economy enters a recession.' In the longer term, for companies to minimise costs related to tariffs, GlobalData indicates that they will need to reduce their reliance on global trade routes. 'Over the next five years, all major economies will try to reindustrialise and stimulate domestic demand,' the report says. 'Trade restrictions and stimulus packages will incentivise, or even force, companies to reconfigure their supply chains. There will be a shift towards localising supply chains to avoid the financial and operational penalties associated with offshoring production.' It notes, however, that reconfiguring supply chains is a lengthy, complex and expensive process. With this in mind, the report also forecasts increased investment in technology. 'Reconfiguring supply chains will accelerate automation,' it says. 'While automation requires significant upfront investment, it can help reduce labour costs, increase manufacturing efficiency and alleviate the financial burden caused by rising tariff rates and reshoring production. Beyond industrial automation, AI-powered tools can also analyse historic market data and help predict when and how future disruptions will impact supply chains.' Among other long-term recommendations outlined in the report are the assessment of alternative manufacturing locations, exploration of new markets and investment in robust supply chain management tools."Tariffs driving supply chain localisation and automation" was originally created and published by Just Drinks, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
South China Morning Post
4 days ago
- Business
- South China Morning Post
China's Xi Jinping makes case for free trade as supply chain expo opens
President Xi Jinping has spoken out against unilateral sanctions and trade barriers – reiterating China's support for globalisation as the international economic environment turns more protectionist – in an article published on the opening day of a high-profile supply chain expo. Wednesday's piece in Qiushi – the leading theoretical journal of the ruling Communist Party – compiles statements Xi has made on the topic since 2012. The article, titled 'Unswervingly Advancing High-Level Opening Up', comes as China continues to make its case as a champion of free trade in contrast with the policies of US President Donald Trump. 'At present, unilateralism and protectionism are on the rise, posing serious challenges to multilateralism and free trade,' Xi wrote. 'China adheres to the correct direction of economic globalisation, promotes trade and investment liberalisation, opposes protectionism, building walls and barriers, and rejects unilateral sanctions and maximum pressure.' The Chinese president also vowed to uphold 'genuine multilateralism' and promote 'an inclusive and universally beneficial economic globalisation'.
The Independent
08-07-2025
- Business
- The Independent
Trump digs in over August 1 tariffs start
Donald Trump has reaffirmed his intention to impose significant import taxes, stating they will commence on August 1, 2025. These new tariffs, ranging from 25 to 40 per cent, are aimed at reversing globalisation and boosting US manufacturing. Trump has sent letters to various countries, including Japan and South Korea, describing their trade deficits as "unsustainable" and justifying the new rates. Despite Trump's claims, these import taxes are typically paid by importers and often result in higher prices for consumers. This latest announcement follows a pattern where Trump has previously extended self-imposed tariff deadlines after negative market reactions.
Zawya
07-07-2025
- Business
- Zawya
Globalisation: A journey of trade, innovation, and disruption
Over 2,000 years ago, the earliest form of globalisation began with the Silk Road. Trade has been a part of human existence since ancient times, with silk and spices exchanged between Asia and Europe. Trade links were established through the Silk Road and, later, the spice routes. History shows that trade thrives when nations protect it and collapses when they do not. Recent history has echoed these patterns: Trade War 1 (2018-19) and the ongoing Trade War 2 have disrupted international trade and reoriented global supply chains. While silk was primarily traded overland, spices were exchanged extensively across the Mediterranean and the Arabian Sea. Globalisation took root during this period, and the Age of Discovery accelerated its progress, even though the phenomenon was not yet recognised as 'globalisation.' The rise of Great Britain and the First Industrial Revolution significantly increased global trade. The French constructed the Suez Canal, which connected the Mediterranean Sea to the Red Sea, opening a vital artery of trade possibilities. The Second Industrial Revolution, also known as the Technological Revolution, introduced new means of communication and transportation that revolutionised manufacturing and commerce. This era ended in crisis with the outbreak of World War I (1914–1918), which caused millions of deaths, widespread destruction, trade disruptions, and closed borders. The post-war years saw some global connections, but the Great Depression led to a breakdown of the worldwide economy. After World War II (1939–1945), the world entered a new era marked by the Cold War, with the Iron Curtain dividing the globe between the two superpowers of the time: the United States and the Soviet Union. A monumental development occurred in 1989: the collapse of the Iron Curtain, which significantly altered global power dynamics. The world began to move from a unipolar to a more multipolar landscape. The formation of the World Trade Organisation further advanced globalisation through numerous trade agreements that spanned borders. The third industrial revolution gave new meaning to the word connectivity. The advent of the computer and the Internet removed barriers to communication and connection across borders, opening doors to the possibilities of trade, work, and economic growth. This led to the unprecedented growth of global connectivity. The advent of the Internet led to a significant surge in globalisation, exponentially expanding international trade and benefiting a substantial portion of the world's population. Rapid technological developments and innovations ushered in the Fourth Industrial Revolution, bringing a wealth of technologies, including artificial intelligence, robotics, the Internet of Things, and others. These developments and advances in transportation and communication have ensured the world is now deeply interconnected through globalisation and trade. At the peak of globalisation, the Covid-19 pandemic struck, exposing vulnerabilities to global supply chains and causing a sudden halt in international trade. Even in 2025, post-Covid-19, the world stands at the crossroads of escalating war, globalisation, protectionism, trade wars, immigration challenges, climate crises, and automation. In conclusion, globalisation is a dynamic phenomenon shaped by the unpredictable forces of the world, including pandemics, trade wars, conflict, technological advancements, innovation, and industrial ambition. From the Silk Road to the era of artificial intelligence, it has unlocked enumerable possibilities and exposed vulnerabilities. As the world faces unforeseen challenges—ranging from pandemics and trade wars to climate change, technological disruption, geopolitical tensions, and health crises—it is clear that globalisation is neither inherently good nor bad. Instead, it is a two-edged sword that must be used with wisdom and foresight. Global leaders and communities must collaborate to ensure that the benefits of globalization are equitably and sustainably shared worldwide and that the risks are mitigated for future generations. 2022 © All right reserved for Oman Establishment for Press, Publication and Advertising (OEPPA) Provided by SyndiGate Media Inc. (
Telegraph
04-07-2025
- Business
- Telegraph
The Daily T: Jeremy Hunt on the case for a free-trade Britain
In the aftermath of Donald Trump's protectionist trade tariffs, how does a post-Brexit UK capitalise on its free trade opportunities? Is it time to reconsider what our tradeable goods really are? And should we be embracing globalisation as the best route forward? Jeremy Hunt puts his argument before Dan Hannan, founding president of the Institute for Free Trade, and David Henig, director of the UK Trade Policy Project at the European Centre for International Political Economy. Hunt argues that even Sir Keir Starmer has realised Britain must make more of its post-Brexit opportunities; opportunities that have been limited, he thinks, by uncooperative partners across the channel, particularly in France. David Henig agrees with the former chancellor, describing them as 'blockers'. Hunt also issues a staunch defence of those, like him, who are all too readily dismissed as 'globalists'. He says globalisation and free trade has in fact been an 'engine for prosperity', but the failure has been in spreading those benefits evenly. On this, he says that Donald Trump's tariff plan shows he has learned 'completely the wrong lesson about what's gone wrong with globalisation'. In this special Daily T series inspired by his new book, Jeremy Hunt pitches his optimism and ideas to leading experts on how the UK can change the world for the better. From mass migration to leading the AI revolution, we ask: can we be great again? Watch episodes of the Daily T here. You can also listen on Spotify, Apple Podcasts, or wherever you get your podcasts.
