Top Supply Chain News for January

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January definitely came in like a lion this year, bringing with it some unprecedented weather events, catastrophic wildfires in California, a new U.S. presidential administration and several developments that may impact supply chains in 2025. 

Tariffs were on everyone’s minds as the new year kicked off. In fact, the thought of double-digit tariffs on goods coming in from neighboring countries like Mexico and Canada had supply chain operators on edge most of the month. On February 1, the president signed two executive orders—one levying a 25% duty on all imports from Mexico and most goods from Canada, and another levying a 10% on Chinese goods imported into the U.S., according to CNN. 

Now, supply chain operators are bracing themselves for the impacts of these new import duties. “Tariffs are not new. Over the past eight years, tariffs, especially those on Chinese-made goods, have become a normal part of business for some industries, companies and supply chains,” Institute for Supply Management (ISM) reports. “In his second term, President Donald Trump has promised additional tariffs on imports from other countries,” George Mason University’s Cheryl Druehl tells ISM.

“Whether designed as a push to bring more manufacturing back to America or as a negotiation tactic, such tariffs, if enacted, could cause more widespread impacts on such areas as consumer goods and the automobile industry,” she continues, “and could result in retaliation or greater disruption from the targeted countries.”

Port Strike Averted

Another port strike was averted when dockworkers, ports and shipping companies reached a tentative deal last month. Without a deal, port workers at 14 port authorities from Maine to Texas were set to go on strike on the morning of January 16.

The United States Maritime Alliance, the group representing ship lines and port and terminal operators, and the International Longshoremen’s Association jointly announced that they agreed on a six-year deal. The deal is not complete until it is ratified by the union’s membership, according to CNN. There has been no publicly announced date for the ratification vote, but it’s expected to happen in the coming weeks.

“We are pleased to announce that ILA and USMX have reached a tentative agreement,” the two sides said in a joint statement. “This agreement protects current ILA jobs and establishes a framework for implementing technologies that will create more jobs while modernizing East and Gulf coast ports – making them safer and more efficient, and creating the capacity they need to keep our supply chains strong.”

CARB Drops a Zero-Emissions Request

Also in January, California withdrew its request for a federal waiver to require commercial truckers to transition to zero-emissions vehicles, preempting an expected denial from the incoming administration. Reuters says the withdrawal was among several pollution-fighting waiver requests filed with the Environmental Protection Agency (EPA) that was dropped by the California Air Resources Board (CARB).

California's Advanced Clean Fleets rule aimed to set timelines for operators of trucks carrying everything from U.S. mail and UPS packages to 40-ft. containers of goods and other cargo to switch to zero-emissions vehicles such as those powered by electric batteries.

“California for decades has driven the U.S. toward less-polluting vehicles,” Reuters reports. “It is the only U.S. state with the power to request a waiver from the EPA to set its own, more stringent, vehicle emission regulations because it has struggled with some of the nation’s worst air quality.”

Domestic Chip Manufacturing Hangups

Taiwan Semiconductor Manufacturing Company (TSMC) may not be able to equip its new Arizona plant with its most advanced chip technology ahead of its Taiwan factories, raising concerns about supply-chain hurdles for tech companies, Reuters reports.

At a recent event, TSMC’s C.C. Wei attributed the delays at the company’s Arizona factory to a combination of complex compliance requirements, local construction regulations and extensive permitting processes. 

“Every step requires a permit, and after the permit is approved, it takes at least twice as long as in Taiwan,” Wei said. This is creating challenges in deploying the company’s most advanced chip technology. According to Reuters, other obstacles that have hindered progress for TSMC include supply chain disruptions and a lack of established regulations for domestic chip plant construction.