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China-to-U.S. Exports Decline Amid Tariff Increases, Raising Concerns of Supply Shortages

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China-to-U.S. Exports Decline Amid Tariff Increases, Raising Concerns of Supply Shortages

by Giezel Garcia
04/29/2025
in Tariffs & Duties

Shipments of goods from China to the United States are declining significantly following the implementation of increased U.S. import tariffs, prompting concerns among businesses about potential product shortages in the coming months.

The U.S. and China have each raised import duties in recent weeks as part of an ongoing trade dispute. The U.S. has imposed tariffs as high as 145% on Chinese imports, while China has responded with tariffs of up to 125% on American goods. Other countries have been granted a 90-day pause on U.S. tariffs to allow for negotiations, but no such exemption has been extended to China.

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At the Port of Los Angeles, one of the largest gateways for Asian imports into the U.S., cargo volumes have already started to decline. According to port executive director Eugene Seroka, shipments dropped 10% last week compared to the same period last year. Further declines are expected, with Seroka predicting a 35% decrease in arrivals within two weeks.

“Essentially all shipments out of China for major retailers and manufacturers have ceased,” Seroka said during a recent Los Angeles Board of Harbor Commissioners meeting.

Supply chain management companies have reported similar trends. Flexport, a logistics firm, estimated that container bookings from China to the U.S. have dropped by as much as 60%. The slowdown coincides with what is typically a peak season for imports of back-to-school and holiday merchandise.

Retailers, including major chains, have built up inventory in advance of the tariff implementation, which may delay any immediate shortages. However, industry leaders have expressed concerns about longer-term impacts on stock availability and pricing. Seroka noted that consumers may begin to see reduced product variety and higher prices later in the summer.

Furniture, auto parts, clothing, plastics, and footwear are among the top import categories at the Port of Los Angeles. Retailers have indicated that these and other product segments could face disruptions.

Logistics data supports the trend. According to Vizion, a container tracking platform, bookings from China to the U.S. fell by 45% during the week of April 14 compared to the same week in 2024. The decrease followed tariff announcements by both governments in early April. In response, some shipping lines are canceling sailings due to low booking volumes.

Freightos, a digital freight marketplace, reported that container shipping prices have declined as demand has dropped. The cost of a standard 40-foot container from China to the U.S. fell from $8,100 in July 2024 to approximately $2,327.

A Freightos survey of 195 small importers found that 33% of businesses planned to pause shipments in response to the tariffs, citing uncertainty around future costs and trade policy direction.

Small businesses are also expressing concern. Kristin Bear, owner of U.S.-based lingerie brand Kilo Brava, said the increased tariffs may force her company to halt imports from China, which could affect operations.

As trade tensions continue, industry stakeholders are closely monitoring developments and seeking clarity on future policy decisions.

Stay updated with supply chain news at The Supply Chain Report. Learn more about international trade at ADAMftd.com with free tools.

#ChinaUSExports #TariffImpact #SupplyShortages #TradeTensions #GlobalSupplyChain #ExportDecline #USChinaTrade

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