Navigating Tariffs and Investment Uncertainty in Global Trade – PMSA in Conversation with Custom Goods

At a time when global trade is facing seismic shifts, tariffs, ship fees, and general uncertainty, how will these challenges impact investment decisions, long-term growth strategies, and the overall competitiveness of the U.S. supply chain?

Pacific Merchant Shipping Association (PMSA) President Mike Jacob and Rob Walpole, CEO of Custom Goods, recently sat down to discuss the uncertainty surrounding trade policies creates significant roadblocks for investment. Jacob emphasized the difficulty of reconciling short-term reactions to policy shifts with long-term structural change. "We've built all of our infrastructure around one frame of business, and that is being challenged." These shifts require a new approach to investment and operational strategy, which businesses must navigate carefully.

Walpole underscored the unpredictability of tariffs and their immediate effect on supply chain dynamics. "We see it in our business in a relatively immediate sense - the impact on where you see volumes and how patterns change pretty quickly as a result of tariffs.” The ripple effects of these changes are felt across multiple industries, forcing companies to reassess their logistical frameworks and trade partnerships.

Considering that the Ports of Los Angeles and Long Beach have built decades of investment around an import-driven framework, making any substantial shift is a costly and complex undertaking. For those in the business of moving cargo, the big question isn’t necessarily about whether the industry can adapt - it’s about the cost of adaptation. If the U.S. supply chain expected to move the same volume of goods but with a different import-export balance, the fundamental mechanics of logistics remain will the same, however, infrastructure investments to policy realignments and workforce adjustments will be radically different.

As the industry navigates these challenges, clarity and stability in trade policies will be essential. Businesses can adapt to change, but the greater the uncertainty, the harder it becomes to make strategic, long-term investments. A well-defined and predictable policy framework is crucial to ensure that trade and logistics continue to thrive in an ever-evolving global landscape.

Watch the full discussion here.