The inauguration of President Trump for his second (and final) term has been felt quite acutely, even in our little corner of the world. At first it was a general sense of ill ease and anxiety. And now we are seeing their action on tariffs and America First Trade Policy.
What does this mean for businesses here in Launceston?
It means a hyper disruptive trading environment is now upon us.
While the restrictive trade measures are not directed at Australia (for now), their broad-based application means that Australian products might get caught in the net.
And the flow-on economic impact will mean less demand globally, including for Australian goods.
We envisage competitors (i.e. countries and their businesses) to start shifting their products and services to Australia, intensifying competition for Australian businesses.
Here are some high level actions you may consider:
Diversify – explore new sources of supply and identifying new customer and market destinations.
Stay informed – be aware of the current geo political and trade implications. Seek professional help.
Strengthen partnerships – nurture your existing relationships with distributors and customers.
Manage risks – spend some time forward planning, identify risks and understand how you can mitigate their impact.
And finally – highlight the Australia/ Tasmania brand which is often associated with higher standards on environmental sustainability and labour practices. Adoption of traceability technologies can help verify credentials and tell and more compelling story.