Shipments from China to the United States have fallen sharply due to escalating tariffs imposed by the Trump administration, raising concerns over product shortages and rising prices. Import duties on Chinese goods have reached as high as 145%, while China has retaliated with tariffs of up to 125% on US products.
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Ports in Los Angeles and Long Beach, which handle around 40% of Asian imports, have already seen a 10% drop in shipments, with further declines predicted. Eugene Seroka, executive director of the Port of Los Angeles, forecast a 35% fall in cargo arrivals within weeks, attributing it to surging tariffs that have made imports unaffordable. 'Essentially all shipments out of China for major retailers and manufacturers have ceased,' he said.
Flexport, a supply chain firm, reported container bookings from China to the US are down by up to 60%. This drop coincides with what is typically a peak shipping season for items like school supplies and Halloween merchandise.
Retailers had previously stockpiled goods in anticipation of the tariff hikes, but inventories may only last a few more months. As tariffs push up costs, some goods may disappear from shelves or face "tariff surcharges", causing price hikes.
Retail giants Walmart and Target have privately warned President Trump that continued tariffs could lead to "empty shelves" and COVID-like shortages. A Freightos survey also found that one-third of small importers plan to pause shipments, while container freight prices have dropped due to cancelled sailings and declining demand.
Some businesses, such as lingerie brand Kilo Brava, may face closure if tariffs persist. Owner Kristin Bear said that unless the levies are eased, they may have to 'abandon the goods and close the company'.
Source: www.cbsnews.com