ABRAHAM LINCOLN ONCE SAID, “GIVE ME SIX HOURS TO CHOP
down a tree, and I will spend the first four sharpening the ax.”
Honest Abe understood the importance of preparation. If you want
good results, you must take the time to prepare properly before acting.
The current administration should heed this advice, as it certainly has
failed to prepare for the possible ramifications of its ongoing trade wars,
particularly those with China.
Most would agree that China has not always played fair when it comes to
trade, and the president wants to force China to do so or face consequenc-
es. That’s why in late September he imposed the infamous 10-percent
tariff on some $200 billion worth of Chinese goods.
But in its attempt to punish China, the administra-
tion is harming U.S. importers and their supply chain
partners.

Anticipating such a move, many importers have been stockpiling inventory. But once those stocks are depleted, the new tariffs will cut drastically into margins, forcing importers to raise prices or make aggressive cuts throughout their supply chains.

Trade wars also disrupt transportation. Ocean carriers and ports may suffer if importers cut back on shipments. Railroads and trucking lines that haul those goods cross-continent may also see disruptions, with thousands of jobs at risk.

The president would like to see many of the products currently manufactured overseas return to U.S. factories. Wouldn’t we all? But that’s not a practical plan, considering we don’t currently have the industrial infrastructure to support it. With an unemployment rate of around 4 percent, we also don’t have workers to staff those factories.

While the goal of building up U.S. manufacturing capability at home is laudable, there are better ways to go about it. Rather than punishing companies that do business with China, wouldn’t it be better to provide incentives for firms to build the infrastructure needed to boost U.S.-based manufacturing? With a lack of labor to staff such expansion, automated equipment will have to fill the gap. Government can and should encourage the growth of industries that create new technologies that make it cheaper to produce and distribute products here at home.

Mistakes are made when governments move without due consideration
of the consequences. Abe Lincoln also addressed the need to avoid hasty
decisions when he said, “Nothing valuable can be lost by taking time.”
For a president who likes to compare himself with Mr. Lincoln, our
current chief executive should take his words to heart.

bigpicture

Editorial Director
Trade wars mean supply chain pain
David Maloney
Editorial Director
dmaloney@dcvelocity.com
Karen Bachrach
Executive Editor
karen@dcvelocity.com
Ben Ames
Senior News Editor
ben@dcvelocity.com
Victoria Kickham
Senior Editor
victoria@dcvelocity.com
Susan Lacefield
Editor at Large
slacefield@dcvelocity.com
Diane Rand
Associate Editor
diane@dcvelocity.com
Steve Geary
Editor at Large
sgeary@dcvelocity.com
Toby Gooley
Contributing Editor
tgooley@dcvelocity.com
Keisha Capitola
Director of Creative Services
keisha@dcvelocity.com
Jeff Thacker
Director of eMedia
jeff@dcvelocity.com
Martha Spizziri
Managing Editor - Digital
martha@dcvelocity.com
Gary Master
Publisher
gmaster@dcvelocity.com
Mitch Mac Donald
Group Editorial Director
mitch@dcvelocity.com
Peter Bradley
Editor Emeritus
Jim Indelicato
Group Publisher
jindelicato@dcvelocity.com
EDITORIAL OFFICE
Tower Square, Number 4