Welcome back to this week’s edition of The Sourcing Spotlight! As always, we’re diving into the latest developments shaping global sourcing and trade. This week, we’re exploring Trump’s unpredictability and its impact on supply chains, Tokyo’s impressive push towards sustainability, and the EU’s ambitious subsidy plans for electric vehicles. These topics are at the forefront of the sourcing world, and we’ll be taking a closer look at what they mean for you and your business. Let’s get into it!

Colombia’s Nearshoring Dream Threatened by Trump’s Tariff Politics

President Trump’s unexpected threat to impose a 25% tariff on all Colombian imports, following a diplomatic dispute over deportation flights, has highlighted the fragility of international trade relationships and jeopardised Colombia’s position as a rising nearshoring hub. Over recent years, Colombia has attracted over $7.6 billion in foreign investment across 300 projects, positioning itself as a cost-effective and stable alternative to Chinese manufacturing for multinational companies. Firms like MedSource Labs, which shifted operations to Colombia to reduce dependency on China amidst tariffs and pandemic-related disruptions, now face renewed uncertainty. While Colombia appeared to be a safe nearshoring destination compared to other regions like Mexico, the incident underscores how politically motivated trade policies can abruptly disrupt global supply chains. Though the immediate tariff threat was averted after Colombia complied with U.S. demands, the episode serves as a stark reminder of the interconnected nature of politics and commerce. As companies continue to navigate an era of geopolitical tensions, environmental challenges, and volatile trade policies, adaptability and strategic planning will be essential to their success. For Colombia, the challenge lies in maintaining investor confidence while mitigating risks posed by external political pressures. Read more.

Fujitsu and SST Launch Sustainable Logistics Platform in Japan

Fujitsu, in collaboration with Sustainable Shared Transport Inc. (SST), has launched an innovative platform to transform logistics in Japan, addressing industry challenges such as transportation capacity shortages and climate change concerns. Announced on 27 January 2025, the platform leverages advanced features like optimised transport planning, a standardised pallet system, and blockchain security, while adhering to government guidelines. It aims to enhance efficiency, reduce CO2 emissions, and improve working conditions. With ambitious plans to expand operations, incorporate diverse transport modes, and integrate digital infrastructure, this initiative aligns with Fujitsu's broader commitment to sustainability and represents a significant step towards a greener, more efficient logistics future in Japan. Read more.

European Commission Considers Pan-European EV Subsidies

The European Commission is considering a pan-European subsidy scheme for electric vehicles (EVs) to support the automotive industry and accelerate the transition to zero-emission vehicles. Proposed by German Chancellor Olaf Scholz, the initiative aims to unify EV incentives across EU member states, addressing competitive pressures from cheaper Chinese EVs and the fragmented nature of existing subsidies. While designed to comply with WTO rules, the scheme faces challenges, including funding allocation among member states, ensuring benefits for European automakers, and the industry's capacity to meet increased demand. A "Strategic Dialogue on the Automotive Industry" will begin on 30 January 2025 to refine the proposal, with ongoing discussions shaping its implementation. This initiative has the potential to revitalise Europe's car industry and drive sustainable mobility across the continent. Read more.

China’s Tech Dominance. A Policy-Driven Rise & Global Impact

China's rapid technological dominance, particularly in AI and clean energy, is a result of deliberate policy rather than chance. The country is leading in AI development, patent filings, and STEM PhD graduates, surpassing Western nations in key areas. The rise of China's AI, exemplified by DeepSeek, follows its success in EVs and battery technology, where it has established supply chain control and cost advantages. Despite concerns about censorship, data access, and national security, China is solidifying its position as a global tech leader. The UK and other Western nations are grappling with balancing economic cooperation with security risks. While the UK Chancellor seeks stronger ties with China, the geopolitical implications of China's tech rise, particularly in AI, remain a pressing challenge for the West. Read more.

Sourcing Tip of the Week!

_{Leverage Supplier Trade Shows & Online B2B Platforms to Find the Right Supplier}

Now it’s nearly the season for Trade Shows, so why is it beneficial? If you’re looking for high-quality suppliers and better pricing, trade shows and B2B platforms can be a game-changer.

 Why Trade Shows?

• Directly meet manufacturers, negotiate deals, and assess product quality in person.

• Discover new suppliers that aren’t always listed online.

• Build stronger relationships for better pricing and customisation options.

Why B2B Platforms?

• Platforms like Alibaba and Global Sources have pre vetted suppliers that help you compare multiple ones easily.

• Check platforms like Import Yeti, that has a list of US import records, so you can find who supply your competitors.

• Check supplier ratings, reviews, and trade assurance policies before committing.

• Ideal for getting quotes fast and exploring Minimum Order Quantities (MOQs).

Pro Tip:
Even if you can’t attend trade shows physically, many now offer virtual meetings and product showcases or list their exhibitors on the Trade Show website . For your sourcing from Bangladesh, Japan, Thailand, Vietnam, Taiwan, and Cambodia, look for region-specific trade fairs and government-backed supplier directories or international trade shows such as Ambiente, in Germany.

That's a wrap on this week's latest news! Stay ahead of the curve by following us daily on Instagram at @loisameliasargent for fresh updates. Craving deeper insights? Dive into exclusive, in-depth analysis with our premium subscription—just $25 a month, and the first month is on us! Get all your most important small business news in one place, helping you navigate information effortlessly with actionable and insightful updates.