Tariff War to Impact Retail: Low-Priced Goods at Risk
26 April 2025 路 Uncategorized 路
Source: 路 https://finance.technews.tw/2025/04/25/us-retail-will-face-shortage-in-may/
Result
As Chinese goods are currently restricted from entering the US market, shortages are expected for American consumers. Experts predict that price-sensitive items, such as toys, home furnishings, and fast fashion, will be among the first to become scarce. Retailers caution that popular consumer products may be unavailable by early May.
US businesses anticipated this scenario and began stockpiling goods following Trump's victory in November 2018; subsequently, US imports surged to a record high of over $300 billion in January. Between December 2018 and February 2019, the total value of imported goods increased from $79.1 billion to $95.1 billion year-over-year, representing a 20% rise.
In March and April, companies accelerated imports in advance of full tariff implementation, resulting in a 56% increase in cargo volume at the Los Angeles and Long Beach ports for the week ending April 26 compared to the same period last year. However, experts now anticipate a decline in ship calls at these two major US ports, with expected reductions of 11% and 33% respectively over the coming weeks.
Hapag-Lloyd, the world's largest shipping line, has reported a third reduction in container bookings from China to the US since early April, signaling a stagnation in Chinese exports. This situation is contributing to disruptions in the supply chain, which will initially impact price-sensitive products like toys and low-cost clothing.
Given that 80% of all toys sold in the US are manufactured in China, experts anticipate these items, along with seasonal children's goods, will be among the first to disappear due to limited buffer inventories. Fast fashion and apparel will also be affected due to their short turnover rates and thin profit margins.
Furthermore, supplies of low-cost home furnishings and consumer electronics, often reliant on components originating from China despite assembly elsewhere, are expected to diminish. This could lead to shortages for inexpensive electronics sold on Amazon and in large stores.
Even if tariffs were substantially lowered, it would still take at least a month for ships to reach US ports, with additional weeks required for rail and truck distribution across the country, thereby prolonging supply chain disruptions. Congestion resulting from the simultaneous arrival of numerous ships may further exacerbate logistical challenges.
The current high tariff rates between China and the US effectively function as import bans, implying that significant time will be needed for economic activities to recover once disrupted. The National Retail Federation advises consumers to prepare for reduced inventories, fewer choices, and price increases.
Cmts: The revised text aims for a more professional and readable tone while retaining the original information.
As Chinese goods are currently restricted from entering the US market, shortages are expected for American consumers. Experts predict that price-sensitive items, such as toys, home furnishings, and fast fashion, will be among the first to become scarce. Retailers caution that popular consumer products may be unavailable by early May.
US businesses anticipated this scenario and began stockpiling goods following Trump's victory in November 2018; subsequently, US imports surged to a record high of over $300 billion in January. Between December 2018 and February 2019, the total value of imported goods increased from $79.1 billion to $95.1 billion year-over-year, representing a 20% rise.
In March and April, companies accelerated imports in advance of full tariff implementation, resulting in a 56% increase in cargo volume at the Los Angeles and Long Beach ports for the week ending April 26 compared to the same period last year. However, experts now anticipate a decline in ship calls at these two major US ports, with expected reductions of 11% and 33% respectively over the coming weeks.
Hapag-Lloyd, the world's largest shipping line, has reported a third reduction in container bookings from China to the US since early April, signaling a stagnation in Chinese exports. This situation is contributing to disruptions in the supply chain, which will initially impact price-sensitive products like toys and low-cost clothing.
Given that 80% of all toys sold in the US are manufactured in China, experts anticipate these items, along with seasonal children's goods, will be among the first to disappear due to limited buffer inventories. Fast fashion and apparel will also be affected due to their short turnover rates and thin profit margins.
Furthermore, supplies of low-cost home furnishings and consumer electronics, often reliant on components originating from China despite assembly elsewhere, are expected to diminish. This could lead to shortages for inexpensive electronics sold on Amazon and in large stores.
Even if tariffs were substantially lowered, it would still take at least a month for ships to reach US ports, with additional weeks required for rail and truck distribution across the country, thereby prolonging supply chain disruptions. Congestion resulting from the simultaneous arrival of numerous ships may further exacerbate logistical challenges.
The current high tariff rates between China and the US effectively function as import bans, implying that significant time will be needed for economic activities to recover once disrupted. The National Retail Federation advises consumers to prepare for reduced inventories, fewer choices, and price increases.
Cmts: The revised text aims for a more professional and readable tone while retaining the original information.