Introduction
The President of the United States, Donald J. Trump, has made a wide array of trade decisions that have had serious implications in areas of international logistics security and customs clearance. Most of the decisions made by President Trump have created a situation where the country is experiencing trade wars with some of its trade partners around the world with the most prominent partner being China. An example of a decision made by President Trump was the signing of an Executive Order in 2017 that had a major impact for multinational firms involved in international logistics from specific countries. From this point of view, it is clear that the foreign policies by President Trump tend to have a serious impact towards defining the trajectory of international logistics security and customs clearance.
Impacts of the President’s Decisions
When evaluating the president’s decision from a trade policy perspective, one of the key aspects to note is that they create a new perspective on how multinational companies would trade, especially when focusing on goods from specific countries. The decisions by President Trump has sparked trade wars where companies find themselves paying significantly higher taxes when importing goods from specific countries. An example of a country that has experienced shifting trade policies with the United States is China. The decision by President Trump to impose tariffs from goods from China has sparked controversy considering that China is one of the biggest trade partners for the United States. From this perspective, what can be noted is that the decisions by President Trump often have serious implications on international logistics security and customs clearance in several ways.
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The following is an analysis of some of notable impacts associated with President Trump’s trade decision on international logistics security and customs clearance:
Misclassification of Actual Goods and Countries of Origin
The first key impact associated with the president’s decisions is that it creates a situation where companies are forced to misclassify the actual goods, as well as, countries of origin to avoid the tariffs. From an international logistics perspective, this means that the companies are failed to adhere to the set out standards that require them to mark the countries of origin before goods are accepted in any countries such as the United States. The impact can be seen for goods that are imported from China where the multinational companies often seek to ensure that they maintain their profitability. That highlights the need for President Trump to review some of the decisions that he is making as a way of protecting importers of such goods from different countries around the world.
Increased Cost of Logistics
The second key impact resulting from President Trump’s trade decisions is the fact that importers often find themselves facing notable importation cost implications. Cost is one of the key aspects to note when focusing on international logistics, as companies are often expected to make sure that they minimize their cost margins as much as possible. Consequently, the exposure to such tariffs creates a situation where the companies experience higher cost margins for their imports, which would then be passed on to the consumers. The ultimate result is that the consumers find themselves experiencing a significant increase in markup costs for imported products from countries such as China among others. That seeks to show the need for having to come up with a change in the policy approaches adopted by President Trump.
Backlog in Customs Clearance
The third impact associated with President Trump’s decision to impose tariffs on goods from specific countries is the backlog in customs clearance considering that goods are to be vetted and evaluated to determine their country of origin. The decisions by the President of United States have a serious implication on the operations in ports throughout the country, as they define what the customs agents would be expected to consider as part of their inspection. That means that custom agents often find themselves spending significant amounts of time in the inspection of specific goods, which translates to notable backlogs. The sole intention of having to expand inspection is to ensure that goods are not misclassified or undervalued as a way of ensuring that companies would pay less taxes. The Port of Louisiana is an example of a port that has experienced a significant backlog in customs clearance as a direct result of the decisions made President Trump.
Conclusion
President Donald J. Trump, who is the current President of the United States, has been involved on making a wide array of decisions that have had notable impacts on international logistics security and customs clearance. The decisions by the president have resulted in the occurrence of trade wars with some of the country’s key trade partners including China among others. From this discussion, some of the key impacts associated with the president’s decisions on trade include misclassification of actual goods, as well as, countries of origin to avoid the tariffs, importation cost implications, and backlog in customs clearance considering that goods are to be vetted and evaluated to determine their country of origin.
