Linkages Global Supply Chain Management
Spring 2025 Vol. 18, Is s u e 1
Imposing Tariffs on Imports Would Create Chaos in Supply Chains While imposing tariffs on a narrow array of products might be justified on national security grounds, acrossthe-board tariffs could have significant negative consequences, leading to major supply chain disruptions. The potential increase in tariffs will impact materials, components and products across global supply chains, resulting in an increase in prices that would most likely be passed down to the consumers. In addition, tariffs could hinder competition and give protection to domestic companies plagued by inefficiences and quality problems. Considering the current complex supply chain networks, tariffs may even have a negative impact in the short term by reducing exports of U.S. manufacturers that rely on imported Prof. Farzad Mahmoodi intermediate goods. Tariffs can also result in retaliatory action by other countries, which would cause some U.S. exporters to substantially lower the price they charge abroad to maintain their market share. Finally, tariffs imposed to punish adversaries may have limited impact, as such countries will find clandestine ways of avoiding tariffs. In summary, tariffs would undoubtedly add to the uncertainties facing many supply chains in the current highly politicized trade environment. Chaos could erupt in global supply chains as companies with significant exposure will likely stockpile inventory to avoid the impact of tariffs. A less visible cost of the tariffs will come from the frenzy of appeals for exemption. This process imposes significant costs particularly on small- and mid-sized firms that are ill-equipped to jump through bureaucratic and political hoops. The repercussions would be felt by every firm that sells imported goods and by every firm that uses imported inputs to run its business. Most worrisome would be the prospect of supply chain chaos as many firms would be forced to shift attention from day-to-day business needs in their scramble to re-negotiate contracts, re-configure supply chain networks and lobby for tariff exemptions. In this issue of Linkages, you will read about our interdisciplinary global supply chain management program, our students and our faculty’s latest achievements, including: Associate Professor Dennis Yu’s research into cold chain network optimization (p. 2); Professor Santosh Mahapatra‘s research into inventory management in disaster relief operations (p. 3); why student Savanah Pierre ’26 learns best through experience (p. 3); how Associate Professor John Milne’s application of operation research methods to solve air travel challenges has brought him global recognition (p. 4); how a generous gift from an alumnus created the Engineering & Management Innovation Lab (p. 5); and Reh School of Business Dean Bebonchu Atems’ insights on the value of STEM designation for business degrees and a strategic investment in graduate programs. We hope you enjoy this issue and welcome your feedback (mahmoodi@clarkson.edu). — Professor Farzad Mahmoodi Joel Goldschein ’57 Endowed Chair in Supply Chain Management & Director of Clarkson’s GSCM Program
Clarkson’s Global Supply Chain Management Program
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in the Nation for 18 years. #1 in New York State. — U.S. News & World Report 2023