Aramex warns UK exporters of possible supply chain costs and delays if the US imposes new tariffs on imports from the UK.
LOGISTICS firm Aramex has warned UK exporters that they may face additional supply chain costs and shipment delays if the US decides to impose tariffs on products being sold from the UK.
The logistics firm highlighted that in the lead-up to the US election, president-elect Donald Trump suggested the possibility of imposing tariffs on goods imported into the US.
While no concrete plans for additional tariffs on UK goods have been announced, Aramex cautioned that shippers should prepare for this eventuality, as reported by London's Air Cargo News.
Umar Butt, CEO of Aramex UK and Europe, stated: "For UK firms, the introduction of tariffs would compel them to either absorb the costs, squeezing profit margins, or pass them on to consumers, potentially reducing demand for goods from industries that typically export in high volumes from the United Kingdom, such as automotive, pharmaceuticals, and machinery."
He further explained, "From a shipping perspective, fears of new tariffs are likely to trigger significant front-loading at US ports once again, with reports indicating that retailers and manufacturers are already actively front-loading imports in anticipation."
This surge in shipments could lead to congestion at key ports, causing delays in unloading, and may also increase shipping costs, making it more expensive for UK firms to deliver their goods to the US.
Butt urged exporters to collaborate closely with their logistics partners in the coming weeks and months to minimize the impact of any potential tariff-related disruptions should they be implemented. He cautioned that what might seem like the most efficient course of action could ultimately result in higher costs down the line.
Mr. Butt noted that during Trump's first term, tariffs were introduced on foreign goods, yet the global economy did not come to a standstill.
He also mentioned that experts expect the incoming US president to adopt a more moderate stance than he indicated during his election campaign.
Mr. Trump, who will be inaugurated on January 20, has stated he will sign an executive order imposing tariffs of 25 percent on all goods from Mexico and Canada, along with an additional 10 percent on imports from China, in addition to any existing tariffs.
