“Goldman Sachs had stated that up to 50% of the tariffs are going to be absorbed by consumers.” – 03:18
Kerim Kfuri, the President and CEO of The Atlas Network, joins Remy Blaire to discuss the current state of global trade amid escalating tensions between the U.S. and China, which have led to significant fluctuations in the stock market.
Remy begins by highlighting the resilience of global supply chains, which continue to hold steady despite the challenges posed by tariffs, geopolitical friction, and the concept of de-globalization. She references the DHL and NYU Stern’s global connectedness tracker, which indicates that companies and countries are managing risks effectively and not retreating from international business. Kerim emphasizes the importance of trade diversification as a critical strategy for mitigating risks in a turbulent economic environment.
As the discussion unfolds, Remy and Kerim delve into the implications of recent market pullbacks, particularly in light of the ongoing government shutdown and the potential for new tariffs. Kerim explains how businesses are responding to this uncertainty, noting that many are stockpiling inventory to prepare for the impact of tariffs. He advises consumers to be strategic in their shopping, as some businesses may have overstocked and could offer discounts.
The conversation shifts to the broader implications for American companies, including small businesses that make up a significant portion of the economy. Kerim, a self-proclaimed supply chain optimist, encourages businesses to seek opportunities within disruptions. He advocates for cost engineering and agility, urging companies to adapt their supply chains to offset increased tariffs and enhance profitability.
As the segment nears its conclusion, Remy asks Kerim about the concerns of stakeholders regarding global trade. Kerim highlights the need for negotiation and resolution, cautioning against overly punitive measures that could ultimately burden consumers. He stresses the importance of communication and collaboration in navigating the complexities of international trade.