Author: Mackenzie Clark, Lead Computational Social Scientist
Persistent Market Turbulence and the interos.ai Solution
In February, interos.ai shared insights about the potential impact of the proposed 25% duty on all imports into the United States from Mexico and Canada. While this action was partially delayed in March, the end of the pause is rapidly approaching with an April 2nddeadline for the enactment of these tariffs to the United States’ top trading partners.
While tariffs against Mexican and Canadian imports were delayed, others were still implemented. An additional 10% duty on imports from China was enacted, bringing the total duties levied against Chinese imports to 20%. China quickly retaliated with import tariffs of their own. Similarly, the US implemented a 25% duty on all steel and aluminum imports from any country, which officially took effect March 12th. In response, both Canada and the European Union announced new tariffs on key US exports.
Amid the whiplash being induced by an impending trade war, the ongoing drumbeat of export controls provides an additional regulatory risk that is reshaping global supply chains. Sanctions on companies continue to increase year-over-year. Export restrictions, such as those implemented by China that restrict the supply of key minerals to the US, are also a common tool in the arsenal of countries seeking to gain or retain their competitive advantage. Other regulations such as the EU Deforestation Regulation or those related to unethical labor practices—Section 1502 of the Dodd-Frank Act and Uyghur Forced Labor Protection Act—also require organizations to monitor and investigate potential regulatory exposures in their extended supply chain.
These rapid-fire developments in the global market highlight that there is no sign of slowing when it comes to new tariffs and the evolution of the regulatory risk landscape writ large. Now more than ever, organizations require a comprehensive monitoring solution that can rapidly alert them to changes that may impact their direct and extended supply chain.
Today, interos.ai is proud to announce the release of our Regulatory & Market Risk Insights. This solution is designed to surface additional context and key data points that enable proactive, strategic decision-making when navigating an increasingly turbulent, complex global market. Organizations can leverage these insights and identify which suppliers are exposed to tariffs, whether they are exporting high-risk products, or if they are situated in a country or industry with greater regulatory risk posture.
Steel and Aluminum Under Fire
For instance, on March 12th, US steel and aluminum tariffs went into effect, leaving no country untouched from these across-the-board tariffs. Analysis from interos.ai shows that the 25% import tariff on steel and aluminum goods may have an expansive impact to companies in the United States, with over 400,000 companies purchasing some form of steel or aluminum product. Among these companies, the most exposed industries include Architectural, Engineering, and Design Services, Consumer Goods, Industrial Equipment Manufacturing and Sales, and Building and Civil Engineering Construction. However, it seems that no industry will remain entirely untouched by this action.
Using our Regulatory & Market Risk Insights, organizations can easily identify companies that may be exposed to limited supply or increased costs because of newly announced tariffs:
Using interos.ai’s new Regulatory & Market Risk Insights companies can navigate the daily changes to regulatory policy, including exposure to trade was and tariffs.
Cars and Pharmaceuticals and Semiconductors, Oh My!
In anticipation ofadditional import tariffs, interos.ai also analyzed what the impact of President Trump’srecently announced tariffs on vehicles and vehicle parts and otherproposed tariffs on pharmaceuticals, semiconductors, and lumber would look like for companies in the U.S.
Much like the steel and aluminum import duties, the impact of the proposed 25% duty on these products and commodities would be expansive:
Again, by leveraging interos.ai’s Regulatory & Market Risk Insights, organizations can easily identify companies that may be exposed to these proposed tariffs:
Beyond Tariffs
While tariffs and trade wars are a hot topic, companies around the world are still responsible for navigating other aspects of the regulatory landscape.
Over the past several months, interos.ai has highlighted the impact of regulations, sanctions, and industry trends that have the potential to shake up supply chains. This has included coverage and impact analyses of the EU Deforestation Regulation, additions to the UFLPA Entity List, and industry-wide risks related to insecure artificial intelligence technologies.
With the release of our Regulatory & Market Risk Insights, the issues covered by these analyses will all be readily available for organizations to leverage in their risk management processes.
Assessing the Impact to Your Organization
It is unclear how much new trade barriers and regulations—and the resulting changes to costs and supply—will impact companies in the United States and around the world. Amid so much uncertainty in the supply chain, it is challenging to understand what the next best action is for companies and consumers alike.
From higher prices to operational disruptions to economic shocks, interos.ai is closely monitoring the situation and how it is impacting supply chains and the global economy, enabling companies to build resilience during a time of significant supply chain disruptions.
To learn more about Regulatory & Market Risk Insights reach out to an expert here.
