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Ports already show the impact of Trump's tariffs

Almost as soon as Trump raised tariffs on China, U.S. importers started canceling orders.

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There is concern that summer could come with product shortages as a result of slowed import activity, said ING's James Knightley.
There is concern that summer could come with product shortages as a result of slowed import activity, said ING's James Knightley.
Michael M. Santiago/Getty Images

It’s been almost a month since President Donald Trump announced he was raising tariffs on all Chinese goods to 145% — that was April 9

And one of the places we’re starting to see the impact of that announcement is at U.S. ports. Almost as soon as Trump raised tariffs on China, U.S. importers started canceling orders.

James Knightley, chief international economist at ING, said cargo ships that left China after that date are much emptier and there are a lot fewer of them.

“Given it takes about 20 to 30 days to arrive across the Pacific, we could be seeing the drop off in arrivals coming through this week,” he said.

It’ll likely be at least a few more weeks before goods from those ships make it onto shelves.

“There is real concern as we approach the summer you could see some shortages of products in the shops,” Knightley said.

Shortages and higher prices for almost everything you can still get.

Rob Handfield, a professor of supply chain management at North Carolina State University, said we’ll be dealing with this for months, at least.

“In many industries, people are ordering now for next Christmas. The planning and the ordering … takes place nine months to a year ahead of when they're actually sold at the store,” he said.

He said the supply shock from tariffs could be worse than the pandemic.

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