Shoppers may soon notice a shortage of imported goods from China on store shelves as early as this summer, according to industry experts. This comes as US businesses have started to reduce or cancel orders following President Trump’s escalation of the trade war with Beijing. The volume of goods shipped from China to the Ports of Los Angeles and Long Beach is set to drop by 43% in the week of May 4 to May 10 compared to the same period last year, as reported by container-tracking software provider Vizion.
This decline follows a 57% increase in shipments for the week of April 20-26, as importers rushed to frontload shipments ahead of the steep tariffs imposed by the Trump administration. With the administration signaling a 54% tariff on Chinese imports on April 2, which was later increased to 145% on April 9, businesses are now feeling the impact.
Jonathan Gold, vice president for supply chain and customs policy for the National Federation of Retailers, warned that small- and medium-sized retailers would have a harder time mitigating the tariffs and could be the first to run out of inventory. China accounts for approximately 54% of all US containerized imports from Asia, including electronics, toys, apparel, furniture, and building materials.
Rita McGrath, a professor at Columbia Business School, highlighted that items that cannot be easily inventoried may face shortages in a matter of weeks. She also mentioned the possibility of scarcity during the upcoming summer holidays. The uncertainty surrounding Trump’s trade policy has made it challenging for businesses like Sunlight Sports in Cody, Wyo., to plan ahead for new orders, especially for goods made in China.
While Trump’s 90-day pause on reciprocal tariffs for all nations except China may provide some relief, concerns remain about potential product shortages similar to those experienced during the COVID-19 pandemic. Customs broker Bobby Shoule predicts that ships arriving at US ports may carry less merchandise in the coming weeks, with many vessels skipping ports in China due to halted shipments or canceled orders.
Larry Gross, president of Gross Transportation Consulting, warned of potential gridlock at the ports as containers pile up with fewer Chinese vessels arriving to transport them away. With these challenges ahead, businesses and consumers alike are bracing for potential disruptions in the supply chain and availability of imported goods from China.
