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DAILY NEWS


THE PRICE OF PROTECTIONISM


P rotectionist trade measures often come dressed as shields for


domestic industries, promising to protect jobs and stabilise home markets. But beneath the surface, they bring a set of consequences that can undercut the very economic stability they claim to defend. Tariffs, retaliatory duties, and abrupt shifts in trade alliances have


become familiar tools in recent years, and their effects are reverberating across the logistics sector — especially for airfreight forwarders who act as the connective tissue of global commerce. What looks like a policy designed to help manufacturers in the short term


ultimately reshapes supply chains, inflates costs, and leaves both companies and consumers paying the price. As these hidden costs ripple through trade corridors, they not only alter business decisions but also affect the daily lives of ordinary households already grappling with inflation.


Driving up costs and disrupting supply chains Brandon Fried, Executive Director of the Airforwarders Association, argues that the true impact of protectionist measures often gets overlooked. “Tariffs and shifting trade alliances inevitably raise the cost of imported goods,” he explains. For freight forwarders, these higher costs don’t exist in isolation. They trigger a series of operational challenges, from disrupted supply chains to strained relationships with overseas partners suddenly uncertain about access to US markets. That uncertainty demands immediate and costly adjustments. Forwarders


are often forced to reroute shipments or renegotiate contracts at short notice. “Freight forwarders thrive on predictability, but sudden shifts in alliances force them to absorb new compliance costs while redrawing cargo routes,” Fried notes. For households already feeling squeezed by inflation, even small increases


in prices can dampen confidence and reduce discretionary spending. When consumers pull back, demand softens across multiple sectors, and logistics


providers face falling volumes and shrinking margins. Those added costs quickly travel downstream. “These higher costs don’t stay


confined to trade corridors. They flow downstream to consumers, who ultimately pay more at the checkout line,” Fried says.


Efficiency erodes under constant uncertainty Protectionism not only raises costs but also undermines the efficiency that is crucial to logistics. “The constant redrawing of trade maps creates uncertainty, discouraging investment in infrastructure and technology at a time when modernization is badly needed,” Fried explains. For freight forwarders, the volatility makes it harder to plan investments in


warehouses, digital tools, and workforce expansion. Instead of looking ahead with confidence, companies are often left in reactive mode, diverting resources to deal with the latest policy change. This erosion of efficiency isn’t just a problem for the logistics industry. As Fried warns, “In the long run, higher costs, lost efficiencies, and reduced demand threaten not only logistics providers but the overall competitiveness of the US economy.” The global picture also comes into play. Protectionist measures may close off


parts of the US market, but they open the door for other countries to step in. “US exporters risk losing market share to global competitors who benefit from freer trade agreements,” Fried cautions. Despite the turbulence, the logistics sector continues to demonstrate


resilience. Forwarders, long accustomed to navigating shifting conditions, are finding new ways to keep cargo moving. “The industry continues to adapt, finding new routes, forging fresh partnerships, and keeping global commerce moving,” Fried observed. His warning is clear: adaptation should not be mistaken for immunity.


“Protectionism carries significant long-term costs for the US economy,” he stressed.


www.aircargoweek.com


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