U.S. imports from China by sea dropped 28.5% year-on-year in May, reaching the lowest level since the pandemic, according to data from supply chain firm Descartes. The fall marks the most significant drop since COVID-19 disruptions and reflects the impact of newly imposed tariffs.
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Overall, U.S. seaborne imports declined 7.2% compared to May 2024, totalling 2.18 million 20-foot equivalent units. This downturn follows a period of early stockpiling by businesses seeking to avoid escalating trade costs.
China remains the top exporter of goods to the U.S. through maritime routes, supplying key items such as furniture, machinery, plastics, toys, and sporting goods for major companies including Walmart and Ford. However, the steep tariffs, initially set at 145% and later reduced to 30% during a 90-day pause, have raised import costs significantly.
West Coast ports, which handle the majority of Chinese imports, were the hardest hit. The port of Long Beach saw a 31.6% year-on-year drop in Chinese shipments, while Los Angeles recorded a 29.9% decline.
Amid these disruptions, U.S. and Chinese officials met in London on Monday in efforts to de-escalate trade tensions. The pause in further tariff increases provides a temporary reprieve, but Descartes warns that import volumes from China may continue to decline as businesses reassess supply chains in response to rising costs.
The sharp reduction in trade underscores growing uncertainty in the U.S.-China economic relationship and highlights the broader global impact of shifting trade policies.
Source: profit.pakistantoday.com.pk