CGTN Europe spoke to Jonathan Owens, Senior Lecturer in Operations and Supply Chain Management at the University of Salford’s Business School.
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00:00The tariffs can be quite significant initially in the small parts that will actually arrive
00:10from overseas and they will be having multiple tariffs that can be added on because not everything
00:18can be actually manufactured and supplied within the US and this will be the manufacturing
00:25industry also impacts into the digital area because a lot of the car manufacturers are
00:31impacted by the digital supply as well and then obviously when we get to the end of the
00:40manufacturing process you then have the tip for tap process of what US can do, other countries
00:50can do so the buying of cars that are actually manufactured in the US can be more expensive to
00:58buy in other countries. I mean this is your specialist subject you write about this in
01:03your most recent research talking about supply chains vulnerable to disruptions we have kind
01:08of been here before haven't we if you think back to the supply chain disruption during the pandemic
01:13the Panama Canal crisis, Ukraine, the Middle East how disruptive is this tariff disruption?
01:21Okay the immediate one at the moment with the tariffs the biggest impact is going to be the
01:29manufacturing areas and also in agricultural areas that they're the two biggest hits right
01:36now if it goes into long sustained areas obviously manufacturing products such as the
01:46large components that are coming in they will come in by a shipping and if that starts to
01:56actually impact and slow down the sales of cars we will actually see less shipping containers
02:07being used and as we saw in the pandemic now those shipping containers being coming become
02:14displaced globally and those shipping containers then being displaced then became rather expensive
02:23to get back into where they should be within the supply chain routes. Now this can be rather
02:29unpredictable Mr. Trump makes the speech it gets lots of headlines on Twitter and the rest of it
02:34it leads the news bulletins and then a couple of days later there's a bit of a row back so it's
02:39very unpredictable to to answer this question I know how quickly would these extra tariff and
02:47shipping costs trickle down to the consumer if I go out and buy a Tesla in the United States
02:54how long before I'm hit? Weeks? Days? Months? That's going to be the multi-million dollar
03:00question because we've already seen a stop start by the Trump administration we are going to do it
03:08then we're going not going to do it and then the response from respective countries actually
03:14happening so this might actually be a non-entity or it might be a full global tariff trade war
03:25if it does become the latter there'll only be so long before the manufacturers can actually hold
03:33back the costs and then it will start to trickle down to the consumers then we've got the consumers
03:41not being the end consumers such as you and I Jamie going out to buy the car but we then we've
03:45got the first, second, third, fourth and tier supplier consumers within the supply chain Jonathan
03:53I think I'll stick to the company Moped and thank you for that Sir Jonathan Owen senior
03:57lecturer in operations and supply chain management at the University of Salford's Business School