Supply Chain Stability Threatened by New Tariff Regime – Global Brands Must Step Up to Protect Workers, Human Rights Experts Warn
The announcement of sweeping US tariffs on key exporting countries risks sending shockwaves through global supply chains putting workers, suppliers and businesses in jeopardy, the Business & Human Rights Resource Centre is warning.
The Resource Centre calls on international brands to act responsibly - rather than rushing to relocate to lower-tariff regions, they must honour commitments to suppliers and workers.
Natalie Swan, Labour Rights Programme Manager at the Business & Human Rights Resource Centre said: “There is already volatility in the supply chains that produce the clothes we wear, the food we eat and technology we rely on. The announcement of new tariffs will send further shockwaves and uncertainty along them. Not just because of the tariffs themselves but also because their application varies across different countries.
“These changes will have potentially huge implications for international brands. Companies must ensure a commitment to suppliers and their workers with whom they have long-standing relationships and work to protect supplier viability, jobs and worker livelihoods.
“Rather than chasing short-term competitive advantages in Asia’s shifting trade landscape, brands should focus on long-term supply chain resilience. This means committing to creating sustainable partnerships at the country level and ensuring supplier and worker protections remain a priority.
“The Business & Human Rights Resource Centre has been monitoring volatility across all supply chains - including political, economic and climate shocks in both producing countries and for the world's largest brands.
“The Resource Centre will continue to monitor the impact of these tariff changes and will raise the alarm if we find supply chain workers are bearing the brunt of these disruptions.
“Fashion and food brands must not repeat the mistakes of the pandemic’s disruption that created such unnecessary harm to workers and their families - from widespread immediate lay-offs, unpaid orders leading to wage theft and demanding discounts on orders that worsen poverty wages. Business must identify the potential human rights risks as a result of these latest tariff hikes.”
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For more information or to arrange an interview or briefing, please contact Anil Dawar: dawar@business-humanrights.org | +44 7766 317 434
Notes to editors
Business & Human Rights Resource Centre is an international NGO that tracks the human rights impacts of companies across the globe.
It monitors the relationship between supply chain resilience, worker rights and purchasing practices and offers up-to-date information on that through its Who Pays For The Crisis? portal.