US President Donald Trump’s threats of military action against drug cartels in Mexico and Colombia are adding a new layer of uncertainty for Asian exporters shipping to the Americas, analysts have said, compounding the strain from higher import tariffs and already fragile supply chains.
Trump has issued explicit warnings about possible strikes in both countries following a major US operation in Venezuela earlier this month, as part of an escalated regional strategy to counter drug trafficking and secure US interests.
“This threat would create fresh uncertainty for Asian exporters’ shipments to North America by adding geopolitical and operational risk on top of existing supply chain pressures,” said Ben Simpfendorfer, a partner at management consulting firm Oliver Wyman.
Businesses could be looking at more delays, higher compliance and insurance costs, as well as more routing and transshipment as firms hedge against sudden policy shifts, he added.
Discover more from PressNewsAgency
Subscribe to get the latest posts sent to your email.