#4 - Trump, tariffs and CBAM: what a headache 🤯

Today we bring you an explosive mix of news: from how Trump and his tariff policy complicates European procurement, to CBAM regulations that require more compliance work than a surprise audit. Plus, a new episode of our podcast tells us about supply chain challenges for an SME of excellence! ☕🎙️

🌍 Global Look.

Trump and procurement 🦅

Trump's recent victory is rattling the European procurement world, especially with his slogan “less taxes and more duties.” The tycoon's proposal is to increase duties by up to 10 percentage points on goods arriving from abroad, including the EU and therefore also Italy. This means that hard times could be coming for Made in Italy, which sees the United States as its second largest market after Germany. 💥

Adding to the increase in tariffs is a likely devaluation of the dollar against the euro, creating further obstacles for Italian exports, stemming from the possibility that the FED will continue to lower interest rates. For the European supply chain, this means having to become cheaper to maintain the same level of competitiveness in the US.

So expect Procurement, once again, to have to find cost-effective solutions to ensure products of the same quality-let's take a breath friends! 🌎🤔

Source: SkyTG24, Reuters

⚖️ Focus Compliance

EU: The CBAM Challenge🌿

Did you know that not being compliant with the new CBAM (“Carbon Border Adjustment Mechanism”) regulations can result in fines of up to €50 per ton of unreported emissions? This regulation is part of the European Green Deal and aims to reduce greenhouse gas emissions by 55 percent by 2030 compared to 1990 levels.

The CBAM was introduced to prevent the phenomenon of so-called “carbon leakage,” that is, the shift of production to countries with less stringent environmental regulations or the substitution of European products with imports from these countries, undermining the EU's climate efforts. 🍂

How does it work. Importers of cement, electricity, fertilizer, steel and aluminum must purchase European CBAM certificates to offset CO2 emissions embedded in imported goods, so as to create parity between European and foreign producers.

Don't worry, given the deluge of reporting on the issue, we're getting our heads down to create a dedicated guide for you: coming soon, the lifesaving buy 🥁 💡

Source: European Commission, PwC

🖼️ Memes of the Day

Too easy to find the right suppliers, negotiate as best you can, and guarantee delivery - don't you love a little compliance to give you more pizzazz? 🥲

🎙️ Podcast section

In this edition we bring you an exclusive interview with Alessandro Moisé, General Affairs & Project Managing Director in OPEM Spa.

The company, which produces sophisticated packaging machines, is a prime example of an SME of Italian manufacturing excellence. Alessandro tells us about how even the best-known suppliers can throw up some nasty surprises, highlighting the importance of supplier qualification and diversification. From OPEM's experience, we discover the criticality of working in multi-sourcing and how price is never the only variable to consider 💰