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US Firms Ramp Up Imports Amid Concerns Over Potential Tariffs

by Geraldine S.
01/16/2025
in Global Trade

US imports from China saw a significant uptick as companies increased shipments of apparel, toys, furniture, and electronics ahead of anticipated changes in trade policies by President-elect Donald Trump.

Trump, set to take office on January 20, has proposed new tariffs ranging from 10% to 60% on goods from China, sparking concerns among importers. Economists predict these tariffs could extend to finished goods, prompting many companies to accelerate imports. “There has been an uptick in the exports of final goods from China to the US, as importers aim to front-run possible tariffs on consumer items,” said Frederic Neumann, Chief Asia Economist at HSBC in Hong Kong.

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In December, US seaports processed a year-over-year increase of 14.5% in containerized goods from China, equivalent to 451,000 40-foot containers, according to Descartes Systems Group. The surge contributed to a 15% rise in US imports of products like bedding, plastic toys, and machinery from China in 2023.

Chinese customs data indicated that December exports reached record levels, partly due to growing concerns over trade protectionism, according to Lv Daliang, a spokesperson for China’s customs administration.

Companies such as Helen of Troy Ltd., which sells OXO kitchen gadgets and Vicks over-the-counter medicines, have been building strategic inventories to mitigate tariff risks. “The inauguration is literally days away. I think we’ll get some more clarity once President-elect Trump is in office,” said CEO Noel Geoffroy.

MSC Industrial Direct, a distributor of tools and industrial supplies, has also adjusted its strategy, sourcing additional inventory from China while promoting US-made goods to offset potential tariff impacts.

Despite these moves, understanding the precise effect of tariff-related concerns on overall import gains remains challenging due to companies’ reluctance to disclose trade data.

Stay informed with supply chain news on The Supply Chain Report. Learn more about international trade at ADAMftd.com.

#TradePolicy #USChinaTrade #SupplyChainUpdate #GlobalEconomy #ImportTrends

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