Tariff loophole fuelling Canadian warehouse sector
Tariffs drive up prices for businesses, but some companies are finding a creative loophole to avoid some US tariffs. When a company imports a tariffed good, it pays a tariff. But it doesn’t pay a tariff if the goods are only passing through on the way to a final destination. This creates an incentive for US companies to store inventory in Canada. They can park products here until they sell them, and only pay tariffs on goods that are actually bound for the US market.
Tariffs are remaking global supply chains in real time
The imposition of tariffs on an ever changing array of products is disrupting global supply chains. Businesses are scrambling to reroute shipments to avoid the hefty fees they could incur as tariffs exceeding 100% are imposed, delayed, or removed entirely—all seemingly at whim. “In the short term, this will be almost like COVID 2.0,” said Saibal Ray, Professor of Operations Management at McGill Desautels.
Saibal Ray and Anna Kim earn prestigious university awards
Two researchers at Desautels were among the academics recognized by McGill with prestigious internal awards for their outstanding scholarship and research excellence. Associate Professor Anna Kim was among the eleven associate and assistant professors honoured with a William Dawson Scholar award, which recognized the demonstrated potential to become a global leader in their field.
McGill Desautels professors and lecturers recognized at Faculty Awards
The McGill Desautels Faculty of Management acknowledges the vital contributions of research, teaching, service, and public engagement in inspiring future leaders. Through our annual Faculty Awards, we celebrate the exceptional achievements of our faculty members across various programs and disciplines. This year, we are proud to honour the following distinguished individuals:
Tarifflation is already driving up consumer electronics prices
Tariffs impose costs on businesses who import goods, and when businessese pass those costs along to consumers, prices go up. This phenomenon is colloquially known as tarifflation, and in this tariff-happy economic moment, we are already seeing its effects. Acer—a Taiwanese electronics company—recently raised its prices, and attributed the price increases to tariffs.
Common household goods could be among those most affected by US tariffs
With the spectre of sweeping tariffs sending ripples through Canada’s economy, the prices of some goods will be much more affected than others. Cheaper household goods like shampoo and toiletries could be among those most affected, according to Saibal Ray, a Professor of Operations Management at McGill Desautels.
US steel and aluminum tariffs will hurt aluminum-dependant towns in Quebec
Imposing a 25% tariff on steel and aluminum could disrupt supply chains and drive up prices for everything from auto parts to canned goods. But for some towns in Quebec, the impact could be even more disruptive. The aluminum sector employs more than 40,000 people in Quebec, and the economies of some small towns are almost entirely reliant on aluminum production.
US steel and aluminum tariffs could stifle investment in Quebec aluminum sector
Aluminum-producing towns in Quebec are bracing for the impact of new US tariffs imposed on steel and aluminum. Quebec accounts for about 90 per cent of Canada’s aluminum production, and the tariffs will affect more than just aluminum producers. “The tariffs may not lead to layoffs at aluminum plants,” said Professor of Operations Management Saibal Ray in an interview with Global News.
US tariffs to hit natural resource-producing communities hard
US tariffs will hit the Canadian economy hard, but individual industries will experience unique effects. In the case of aluminum production, much of Canada’s 3.2 million metric tons of aluminum that Canada produces each year could be re-routed to Europe. But some communities could still be hit hard and other places that harvest natural resources won’t be able to find other buyers so easily.
Inflationary effects of possible US tariffs are unknown, but could already be affecting consumer behaviour
With the spectre of tariffs looming over the Canadian economy, should you hurry to buy an appliance before the added costs get built into their prices? There is no clear answer, and it is not yet known how much tariffs could affect prices, but according to Professor Saibal Ray, the way people think about tariffs could be as important as the tariffs themselves.
Wind-powered shipping could make a comeback—but it won’t work for everything
Wind has been powering the economy for centuries. Long before giant aluminum windmills were fed into the electric grid, wind filled the sails of ships plying the open seas. French businessman Guillaume Le Grand wants to bring back wind-powered shipping, and his company is already shipping French goods to North America that way.
McGill Desautels faculty members and researchers celebrated at Bravo Gala
McGill University hosted its annual Bravo Gala on Thursday, March 21, which honours its faculty members and researchers who have won special awards, memberships and prizes over the past year. McGill Desautels is proud to announce 14 of its faculty amongst the distinguished honourees this year. Congratulations to our deserving laureates! Full list below. #Bravo2024
Maxime Cohen and Saibal Ray named Top Retail Experts for 2024
Two faculty members of the Bensadoun School of Retail Management (BSRM) have been named to Rethink Retail’s Top Retail Experts (TRE) list for 2024, one of the most prestigious global accolades in the Retail and Consumer Packaged Goods (CPG) industry.
Holiday grocery price freeze includes more products this year, but long-term affordability solutions needed
This year, Canada’s large grocery chains are freezing the price for a greater variety of items than usual before the holidays. While 10-15% more products are included in the freeze this year, the true test of affordability will come later. “How high will grocery prices be when the price freeze ends?” asks Professor Saibal Ray in an interview with CBC Radio’s As It Happens.
Canada's big grocery chains face pressure to cut prices as food costs rise
Food prices rose by 5.8 per cent in September, prompting the federal government to ask Canada’s five largest grocery chains to provide a plan for how they will stabilize prices, with staple products a likely focus. “High transportation costs, inventory issues and other pressures driving up costs are subsiding,” says Professor Saibal Ray, who specializes in Operations Management.
