Companies getting ‘a bit tired’ of tariff chaos, DHL CEO says
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Tobias Meyer is visiting Singapore as the global logistics giant has opened a new €10 million (S$15 million) pharmaceutical hub.
PHOTO: BLOOMBERG
SINGAPORE – Fatigue is setting in among companies and manufacturers trying to navigate US President Donald Trump’s whipsawing tariff moves, according to DHL Group chief executive Tobias Meyer.
Dr Meyer, head of one of the world’s biggest logistics companies, warned that companies and people are getting “a bit tired” of the constantly shifting announcements.
“They don’t know, even if something is announced, whether two days later it’s not changed again,” Dr Meyer said in an interview on Bloomberg Television. “You really see some fatigue of decision makers in manufacturing and also in the distribution sector.”
One of Mr Trump’s biggest shifts came last week, when he announced his long-awaited “reciprocal” tariffs, only to quickly delay their implementation by 90 days following a day of market turmoil.
Just recently, he announced that phones, computers and popular consumer electronics would be exempt from the 125 per cent tariffs on China and a 10 per cent flat rate around the globe, only to say later that he will still apply the levy, downplaying the exemption as a procedural step.
Dr Meyer said the higher duties would be “an additional burden on the US consumer”, irrespective of whether the pain is offset by other money-saving measures.
US officials have spoken of raising between US$300 billion (S$396 billion) to US$600 billion from the tariffs, while Mr Trump has pledged tax cuts.
Corporations and manufacturers are weighing where to place production or worrying about product launches, Dr Meyer said.
Customers are opting to wait to make decisions until Mr Trump’s tariff decisions are decided.
Dr Meyer is visiting Singapore as the global logistics giant has opened a new €10 million (S$15 million) pharmaceutical hub in the city-state.
The facility forms part of a broader €500 million regional investment in life sciences and healthcare infrastructure to bolster all of its business units.
DHL is in the crosshairs of the whipsawing of Washington’s ever-changing trade and tariff policies, like its carriage of small-parcel that the US now wants to impose duties on.
The US ended the so-called “de minimis” exemption, beginning with China, that generally means parcels worth $800 or less do not face duties. BLOOMBERG
