US imports from China have dropped sharply following President Donald Trump’s 145% tariff on the country, with volumes falling over 30% in recent weeks. Companies had stockpiled inventory ahead of tariffs to avoid price increases, but immediately pulled back on imports as a result.
The sudden drop in shipping activity has created a supply chain nightmare for American companies that have struggled to reorganize their operations amid changing tariff policies. Logistics experts warn that continued tariffs could send the industry into choppy waters.
Data from the Port of Long Beach shows a 16 ship decrease, resulting in fewer imports arriving at the port than usual. Gene Seroka, executive director of the Port of LA, predicts arrivals will drop by 35% in two weeks’ time as shipments from China cease.
The tariffs’ economic impact is uncertain, and logistics experts fear that companies reliant on imports may not see a reprieve from supply chain uncertainty for months. Dean Croke notes that even if tariffs are lifted, it will take two months for things to get back to normal, resulting in a prolonged recovery.
As the situation continues to unfold, logistics workers risk losing their livelihoods due to reduced shipping activity and inconsistent hours at ports. The Port of LA executive director warns that truckers may move from four loads a day to three loads a day if demand decreases, while dock workers may return to standard hours after experiencing overtime.
Source: https://fortune.com/article/trump-trade-war-ocean-shipping-cancellations-imports-china