The New York Post reported that shoppers could start seeing empty store shelves by May. Mom-and-pop shops are most likely to be affected.
According to Vizion, the number of China imports expected to arrive in the Ports of Los Angeles and Long Beach between May 4 and May 10 is down by 43% compared to the same period the previous year.
Comparatively, during the week of April 20 to April 26, importers increased shipments of Chinese goods by 57% in order to stock up ahead of Trump’s tariffs of 145% on China.
A shipment from China typically takes two to three weeks before it reaches West Coast ports.
The reciprocal tariffs on 90 nations announced on April 2 were granted a 90-day respite to allow trade negotiations. If the United States fails to reach a trade agreement with its trading partners, it will become effective in August.
The tariffs on China became effective immediately.
Jonathan Gold, Vice President for Supply Chain and Customs Policy at the National Federation of Retailers, said that small and medium retailers would have a hard time mitigating the tariffs. They will also be the first ones to run out of stock.
China is the source of 54% of the U.S. containerized imports, which include electronics, toys, and clothing, as well as building materials, furniture, and other goods.
China was the largest supplier of goods in the United States last year, with $438.9 billion, or 13.4%.
Rita McGrath is a professor of strategic management at Columbia Business School. She said that things cannot be inventoried. You’ll notice [shortages] within a few weeks, or maybe even months. I think that you will also start to notice scarcity during the summer holidays.
Bobby Shoule is a customs agent with JW Hampton Jr. & Co. in Jamaica, Queens in New York. He predicts that import shortages will begin in three to four weeks. This means they will be in full force by the middle or end of May.
Wes Allen of Sunlight Sports in Cody, Wyoming, said that the vendors Sunlight Sports uses lay off workers to pay tariffs. Prices are also going up.
Allen stated, “The things we import directly cost way more than what we expected.”
Shipping experts fear that American consumers and retailers could face the same shortages as they did during the COVID pandemic. Importers worry about their sales if U.S. consumers continue to be downbeat.
McGrath advised, “Think of your economy. You wouldn’t be willing to put down money if you didn’t know what was going to happen in the future.”
Tariffs have already caused 80 container ships bound for Asia to bypass Chinese ports.
Larry Gross, President of Gross Transportation Consulting, has warned that a decrease in international trade will likely result in container vessels sitting idle, creating port gridlock.
Gross stated, “We are seeing ships deloading now and possibly next week, which were sent out with full capacity weeks ago.” “Those things take valuable space in these ports.”
