US NEWS

Why Trump’s pressure to lift tariffs is mounting for Biden as supply chain problems worsen

Lack of computer chips. Epic port traffic jam. And a severe shortage of truck drivers. The world’s fine supply chain is under extreme pressure.

The two-night dream of the supply chain is driving up consumer prices and slowing the global economic recovery from Covid-1. Unfortunately, Moody’s Analytics has warned supply chain disruptions “will get worse before they get better.”

“As the global economic recovery continues to gather steam, it is becoming increasingly clear how the supply chain will be disrupted, which is now seen in every corner.”

Indeed, the IMF on Tuesday lowered its 2021 growth forecast for the United States to one percentage point, the highest for any G7 economy. The IMF cited supply chain disruptions and weak costs – partly driven by supply chain constraints such as the lack of new vehicles to buy amid a shortage of computer chips.

“Border control and mobility restrictions, the lack of a global vaccine pass, and the demand for home-grown paint-ups have combined for a perfect storm where global production will be disrupted because untimely deliveries, costs and prices will rise, and global GDP growth will accelerate.” It will not happen, ”Moody’s wrote in the report.

Moody’s said the “weakest connection” could be the lack of truck drivers – a problem that has caused traffic jams at ports and dried up gas stations in the UK.

Unfortunately, Moody’s warns of “black clouds ahead” because several factors make it particularly challenging to cross the supply chain.

First, it points to differences in how companies are fighting Kovid, with China targeting zero, and the United States “more willing to live with Kovid-1 as an endemic disease.”

Moody’s writes, “This presents a serious challenge to coordinating the rules and regulations that allow transport workers to move in and out of ports and hubs around the world.”

Second, Moody’s cites that there is “no concerted global effort to ensure smooth operation” of the global supply and transportation network.

Others are much more optimistic in terms of the supply chain.

Jamie Damon, CEO of JPMorgan Chase, said Monday that these supply chain accounts will quickly fade.

“It’s not going to be a problem at all next year,” CNBC said. “It’s the worst part of it.



Source link

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button