China’s exports to the US have plummeted as tariffs imposed by the Trump administration continue to rise, leading major retailers to warn of impending product shortages. The trade war between China and the US has escalated, with each nation imposing tariffs on goods worth billions of dollars.
US import duties on Chinese products now stand at 145%, while China has retaliated with 125% tariffs on US goods. Shipments from Asia, particularly from China, have slowed significantly, with the Port of Los Angeles seeing a 10% drop in imports compared to the same period last year.
Retailers such as Walmart and Target had previously warned that tariffs could lead to higher prices for consumers, but now they are facing inventory shortages due to reduced shipments from China. Logistics groups report sharp declines in cargo bookings from China, with some shippers pausing mid-shipment cycle to reassess costs.
The decline in imports comes during a busy period for US trade, and retailers have stockpiled sufficient inventory to last a couple of months. However, if the tariffs remain in place, consumers may face empty shelves, particularly for goods such as furniture, auto parts, clothing, plastics, and footwear.
Experts warn that tariffs will lead to “empty shelves in US stores” and “COVID-like shortages” for consumers and firms using Chinese products as intermediate goods. The CEOs of Walmart and Target had previously warned President Trump about the potential impact of his sweeping tariff policy on store shelves.
Source: https://www.cbsnews.com/news/china-exports-to-us-drop-sharply