[Text/Observer Network Qi Qian] US President Trump imposed a 145% tax on Chinese goods and targeted Chinese ships, leaving American consumers in a difficult situation. On May 6, CNN reported that after Trump announced the so-called "reciprocal tariff," US imports from China plummeted sharply. Several industry insiders warned that within a few weeks, American consumers will face rising prices and shortages of certain goods.

"This week, our cargo volume at the Port of Los Angeles is down about 35% compared to last year at this time," said Gene Seroka, executive director of the Port of Los Angeles, during an interview that day. These ships were the first to arrive at the Port of Los Angeles after Trump announced the "reciprocal tariff."

Seroka also said that the freight volume of these incoming cargo ships has dropped significantly, with the number of goods imported from China decreasing by more than 50%.

Seroka said that many US importers have canceled previous orders because they are unwilling to pay high tariffs, which could double the price of Chinese goods. He revealed that the Port of Los Angeles had originally expected 80 ships to arrive in May, but 20% of them have been canceled. So far, customers have canceled 13 voyages in June.

"Even so, you don't know how long this situation will last," Seroka warned. "Many US retailers and importers told me that the prices of these products are now about two and a half times higher than last month."

Seroka interviewed by CNN Video screenshot

Ryan Petersen, CEO of Flexport, a US logistics and freight forwarding company, said that some retailers choose to pay to store products in Chinese warehouses instead of importing them into the US, as it is cheaper than paying the tariff.

Petersen believes that due to importers and retailers' reluctance to bear high tariff costs, future shipping volumes may continue to decline, possibly by as much as 60%. He reminded that American consumers will soon notice this.

"A 60% reduction in container numbers means a 60% reduction in arrivals," Petersen told CNN. "Stockouts are just a matter of time, followed by shortages and price hikes."

CNN cited data from the National Retail Federation (NRF), predicting that US imports will fall by at least 20% in the second half of 2025. The decline in imports from China will be even more significant. JPMorgan Chase expects a 75% to 80% drop in US imports from China.

After taking office, Trump sparked trade wars worldwide and announced a 145% tariff on Chinese imports. The "small exemption" policy for Hong Kong and mainland China expired on May 2. Chinese ships have also become a "thorn in the side" for the Trump administration and will be subject to high fees.

In its report, CNN mentioned that before the implementation of Trump's tariff policies, many US companies chose to stockpile materials, supplies, and consumer goods. Data showed that the US trade deficit exceeded expectations in March, reaching a record $140.5 billion. Some economists expect that the surge in imports will continue for several more weeks as ships arrive at ports, but then it will quickly collapse.

Los Angeles Port sees halving of imports from China Video screenshot

Daniel Verheber, economist at Nationwide Financial Services, pointed out in a report to clients on the 6th: "Companies pre-purchased consumer goods and capital goods (and other products) in the first quarter to cope with 'liberation day' on April 2. With the implementation of new tariffs, we expect further increases in US inflation, which will add greater resistance to already slowing consumer activity and economic growth."

Wealth Bank economists wrote in a report to investors on the same day: "If goods are loaded at the port of origin or en route to the United States before the tariff collection date and received before May 27, they can enter the US duty-free. This gives companies more time to stock up, which will also be reflected in the April data. However, apart from this, we expect trade to slow down significantly."

Meanwhile, Americans continue to buy previously stored goods in US warehouses. But CNN warned that these inventories are starting to run out.

Petersen told CNN last week: "If this continues for a few more weeks, (retailers) will sell out their inventory, and there will be shortages and empty shelves by summer."

Seroka also predicted that American consumers' choices will decrease significantly at that time. He warned: "About 90% of global trade is completed by sea. At the Port of Los Angeles, about 45% of our business is related to China, including furniture, electronics, appliances, clothing, and shoes... These tariffs will ultimately be reflected in the cost structure of goods and paid by American consumers."

Bloomberg recently reported that Trump's series of trade barriers against China have caused serious consequences for the US economy, and Americans who rely on relatively cheap Chinese products are deeply affected.

The report noted that young Americans are increasingly dissatisfied with the Trump administration. Trump's insistence on initiating a trade war against China, targeting Shein, Temu and other Chinese e-commerce platforms, as well as TikTok, may disrupt the lives of American youth accustomed to fast fashion, TikTok videos, and Xbox, and further affect young consumers who have just gained financial independence and are already under inflationary pressure.

"Furious," "unaffordable," "don't know what to do"... Many young people complained that the tariff policy has turned their lives upside down. At the same time, dissatisfaction was heard within the Republican Party. The report stated that Trump's heavy taxation may affect the Republican Party's midterm election next year.

This article is an exclusive contribution from Observer Network and cannot be reprinted without permission.

Original source: https://www.toutiao.com/article/7501629370566689295/

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