The COVID-19 pandemic and Donald Trump’s presidency are critical factors that affected supply chains at a global level, creating new challenges for logistic networks worldwide. Globalization enables businesses to operate on an international scale, reaching new markets and customers and expanding sourcing opportunities. At the same time, global supply chains are characterized by increased complexity and competition and are associated with greater logistic networks risks.
The Trump Presidency
In particular, the Trump administration resulted in such challenges for global supply chains as increased tariffs and costs for both businesses and consumers. As tariffs were imposed on numerous trading partners of the United States, including China, Canada, Mexico, and the European Union, many exporting industries faced increased costs and partners’ retaliation. Furthermore, according to Seddiq et al. (2022), “Trump sought to use pandemic supply chain issues to make the case for increasing domestic manufacturing” (para. 10). As a result, the US faced a significant supply chain crisis and widespread shortages of essential goods.
The COVID-19 Pandemic
The coronavirus outbreak is another impactful factor associated with critical challenges for global supply chains, namely, decreased production and border closures. Numerous businesses have faced the adverse effects of the pandemic, in particular, the automotive industry, which is characterized by a complex system of suppliers, manufacturers, and retailers. As reported by Wayland (2021), “automakers across the globe are expected to lose billions of dollars in earnings this year due to a shortage of semiconductor chips” that hinders production (para. 1). Furthermore, border closures aggravate the situation by disrupting supply chains, increasing delays, and reducing the capacity of air cargo. Overall, recent events have revealed the vulnerabilities in global supply chains that need to be addressed in a strategic and timely manner.
References
Seddiq, O., Haltiwanger, J., & Winck, B. (2022). Trump falsely suggests there were no supply chain issues when he was president. Insider. Web.
Wayland, M. (2021). How Covid led to a $60 billion global chip shortage for the auto industry. CNBC. Web.