163 - Supply Chain Meltdown: Tariffs, Shortages, and the New Trade War with Craig Fuller

🚨MY NEWSLETTER https://nikolas-newsletter-241a64.beehiiv.com/subscribe 🚨Join me, Nik (https://x.com/CoFoundersNik), as I interview Craig Fuller (https://x.com/freightAlley), the Bloomberg of freight and logistics. Craig is a serial entrepreneur and founder of Sonar (like the Bloomberg terminal for logistics data) and FreightWaves, keeping people up to date on the world of trade. Like many entrepreneurs, I initially thought the trade war talk wouldn't really impact me, but a tweet from Craig about back to school orders sparked my awareness about the long lag in supply chains.In this episode, we dive deep into why the US-China tariffs, particularly the unexpected 145% increase, are causing a slow-moving car wreck in the supply chain. We break down the complex journey a product takes from a factory in China to a US shelf, explaining the roles of manufacturers, forwarders, customs brokers, ports, bonded warehouses, and domestic logistics. We discuss the significant lag between placing orders and receiving product, why Chinese manufacturers now see US importers as credit risks, and how companies are pausing all orders leading to freight piling up and a potential wave of shortages and layoffs in industries like trucking and retail.Craig shares his insights on the data he tracks, like container outbound shipments and domestic trucking data, showing the dramatic drop in trade volume. This conversation is crucial for any entrepreneur navigating this new, unpredictable era.Questions This Episode Answers:- What is the typical lag time for products moving from a factory in China to a US shelf?- Why are the high tariffs causing potential supply chain shortages and not just higher prices?- What happens when US importers can't afford to pay the tariffs on goods arriving from China?- What was the de minimis exemption and why did Craig call it "the most ridiculous part of our whole trade policy"?- What can entrepreneurs do defensively and offensively right now to navigate this trade war?Enjoy the conversation!__________________________Love it or hate it, I'd love your feedback.Please fill out this brief survey with your opinion or email me at [email protected] with your thoughts.__________________________MY NEWSLETTER: https://nikolas-newsletter-241a64.beehiiv.com/subscribeSpotify: https://tinyurl.com/5avyu98yApple: https://tinyurl.com/bdxbr284YouTube: https://tinyurl.com/nikonomicsYT__________________________This week we covered:00:00 The New Reality of Global Trade03:03 Supply Chain Dynamics and Challenges05:53 Understanding the Supply Chain Process09:11 Tariffs and Their Impact on Business12:02 The Role of Customs Brokers and Forwarders14:52 The Importance of Bonded Warehouses18:08 Current Trends and Future Predictions20:57 The Impact on Employment and Economy23:50 Navigating the New Trade Landscape38:46 The Impact of Tariffs on Trade41:04 Navigating the New Trade Landscape43:49 Understanding the De Minimis Exemption49:15 The Challenges of Rapid Tariff Changes54:59 Preparing for a New Era of Trade01:01:10 Exploring Alternative Sourcing Strategies01:06:25 The Future of Domestic Manufacturing01:11:34 Opportunities Amidst Chaos