MARKET BRIEF | October 2025
New 100% Tariffs Announced on Chinese Goods and Port Cranes
The Trump administration has announced 100 % tariffs on all Chinese imports, effective November 1, dramatically escalating trade tensions. The policy is positioned as retaliation for China’s new export controls on rare earths and critical technologies, and would effectively double the duty burden on affected goods. In a related move, the United States Trade Representative (USTR) will also impose 100 % tariffs on ship-to-shore cranes and related cargo-handling equipment tied to China, effective November 9.
U.S. importers and retailers are rushing to bring in inventory before the deadlines, warning of looming cost and consumer price shock waves. China has signaled strong countermeasures, raising fears of an intensifying trade war with global inflation, supply chain turmoil, and major ripple effects in logistics and port modernization.
Follow Speaking Logistics for live blog updates on the latest news.
Airlines Hit with $11 Billion Supply Chain Spike
Global airlines are projected to incur over $11 billion in additional costs in 2025 due to persistent supply chain disruptions, according to a joint IATA–Oliver Wyman study. Key drivers include:
- ~$4.2 billion from inefficient fuel use for older aircraft in service
- ~$3.1 billion in maintenance for aging fleets
- ~$2.6 billion in engine leasing due to delays
- ~$1.4 billion from higher spare parts inventory
Delays in aircraft and parts delivery, staffing strain, and constrained capacity compound the pressure. The report urges opening up the aftermarket, boosting transparency, and increasing resilience across the aviation supply chain.
IKEA Acquires Tech Firm Locus
Ingka Group — the largest IKEA retailer and a strategic partner in the IKEA franchise system — has acquired U.S. logistics-tech firm Locus, which offers AI-powered route optimization, order grouping, and real-time delivery tracking. The acquisition is designed to give IKEA more control over its delivery operations, improve efficiency, and lower costs. The company expects to save roughly €100 million annually in delivery expenses. Online sales now represent about 28% of IKEA’s revenue, up from 11% in 2019, making optimized last-mile logistics especially strategic. Despite the acquisition, Locus will remain operationally independent and continue serving other clients beyond IKEA.
California & Oregon Pause Non-Domiciled CDLs
California and Oregon have suspended issuing non-domiciled Commercial Driver’s Licenses (CDLs) in response to an emergency U.S. Department of Transportation order citing safety concerns. The move is part of a broader federal crackdown, following findings that over 25% of non-domiciled CDLs in California had been improperly issued or extended beyond lawful status. Other states (such as Colorado, Pennsylvania, Washington, and Texas) have similarly suspended non-domiciled CDL issuance. The pause aims to tighten regulatory oversight, enforce immigration and licensing rules, and eliminate “loopholes” enabling unqualified or improperly credentialed drivers.
