Trump’s China tariffs to trigger US supply chain shock

The escalating trade conflict between the United States and China is causing major disruptions across global supply chains, raising concerns about broader economic impacts.

Following the US decision to hike tariffs to 145% in April 2025, cargo shipments from China have plummeted by roughly 40%. Major retailers are now warning of possible price increases and product shortages, particularly with the peak shopping seasons approaching.

Manufacturers and suppliers are already grappling with inventory delays and order cancellations. In response to the slowdown, the freight industry has reduced shipping capacity, adding further complexity to supply chain operations.

Experts caution that if the trade dispute is resolved, the sudden rebound in shipping demand could overwhelm ports and logistics networks.

Meanwhile, many US importers are shifting their sourcing to Southeast Asia. However, economists warn that the prolonged trade war could drive up inflation, trigger job losses, and further weaken consumer sentiment.