WASHINGTON, April 28 — The escalating US-China trade war, driven by President Donald Trump’s tariff increases, is beginning to affect American consumers and businesses more directly.
Since the tariffs on Chinese goods were raised to 145 per cent in early April, cargo shipments have sharply declined, with one estimate suggesting a 60 per cent drop, Bloomberg reported today.
Though the impact has not been widespread yet, it is expected to hit home soon, particularly for companies that depend on imported goods.
Retail giants like Walmart and Target have warned of potential product shortages and rising prices if the situation does not improve.
Torsten Slok, chief economist at Apollo Management, has predicted shortages and layoffs, affecting sectors ranging from retail to logistics.
Even with signs that President Trump may ease tariffs, experts caution that it could be too late to avoid a significant supply chain disruption.
Jim Gerson, president of The Gersons Companies, which supplies holiday decorations, explained that his company is facing delays with 250 containers awaiting shipment.
The global freight industry has reduced capacity due to lower demand, and a potential surge in orders could overwhelm ports and rail systems.
Experts warn that ports, designed for consistent flow, could face bottlenecks due to the erratic nature of trade volume shifts.
As retailers prepare for back-to-school and Christmas sales, many are in limbo, awaiting products that should be arriving soon but are delayed due to tariffs.
Some companies, like toymaker Basic Fun, are already seeing order cancellations, with CEO Jay Foreman describing the tariffs as a “de facto embargo.”
The slowdown in trade with China, coupled with cancelled sailings and rising costs, has prompted economists to predict a significant slowdown in the economy.
