Key Findings from Our Analysis:

• China Trade War Set to Intensify – Tariffs could rise to 245% or higher, with possible MFN revocation, creating major cost shocks.
• Raw Material & Category-Level Impact – Industries like electronics, automotive, chemicals, and packaging will see 5-15% cost increases due to higher tariffs on key imports.
• Sourcing Risks & Supplier Alternatives – China-dependent categories like batteries, stainless steel, PTA, PET, and IT hardware will need new global supplier networks in India, South Korea, and Latin America.
• Logistics & Freight Price Surges – Tariffs on Canadian and Mexican crude oil will raise fuel and transportation costs by 10-12%, impacting procurement budgets.
  
  

Key Industry updates:

• Electronics & Electrical – Semiconductor supply chain disruptions with increased chip shortages and hardware costs.
• Automotive – Raw material costs up by 7-10%, driven by tariffs on aluminum, batteries, and steel.
• Chemicals & Pharma – Sourcing challenges for PET, PTA, and MEG, with China and Mexico being key suppliers.
• Packaging & Consumer Goods – Paper & rigid plastic packaging costs rising by 5-8%, affecting sustainability initiatives.
• Energy & Logistics – Fleet management, crude oil imports, and international freight costs increasing due to fuel tariffs.