The flow of goods from China to the U.S. shows signs of disruption
Illustrative photo - Photo: Reuters.
On Friday (May 9), port operators on the U.S. West Coast revealed to CNN something unprecedented since the Covid-19 pandemic: In the past 12 hours, not a single cargo ship carrying goods from China had arrived at the two largest ports on the West Coast.
Six days earlier, 41 cargo ships carrying goods from China were en route to the San Pedro Bay Complex, which includes the ports of Los Angeles and Long Beach in California. On Friday, that number was zero.
After beginning his second term, U.S. President Donald Trump imposed heavy tariffs on Chinese goods, with a total additional tariff rate reaching 145%. This massive tariff led to fewer cargo ships from China arriving at U.S. ports and a sharp decline in the volume of goods. For many American businesses, tariffs have made doing business with Chinese partners too expensive to bear.
U.S. port operators are not only worried about the decline in cargo ships from China but also about the speed of that decline, according to CNN. “It’s an alarming reality. We are witnessing a drop more severe than during the pandemic,” said Mario Cordero, CEO of the Port of Long Beach, referring to the number of canceled cargo trips and the decline in arriving ships.
The largest U.S. ports are facing a sharp decline in cargo volume. For example, the Port of Long Beach has seen a 35-40% decrease in cargo volume compared to normal. The Port of Los Angeles recorded a 31% drop in cargo volume last week. The ports of New York and New Jersey also reported declining cargo volumes, according to CNN. Last Wednesday, the Port of Seattle reported having no container ships dock that day—an unusual event not seen since the pandemic.
“That’s because there are no goods being shipped,” said Ryan Calkins, a commissioner at the Port of Seattle.
Trade negotiations between the U.S. and China took place in Geneva, Switzerland, last Saturday and Sunday. This was the first high-level direct meeting between the two countries since Trump imposed a 145% tariff on Chinese goods, with Beijing retaliating with a 125% tariff on U.S. goods. After the meeting, U.S. officials said an “agreement” had been reached to reduce the country’s trade deficit with China, while Chinese officials said both sides had achieved “important consensus” and agreed to launch a new economic dialogue forum.
According to Reuters, neither side provided any details after two days of talks. Chinese Vice Premier He Lifeng said a joint statement would be released in Geneva on Monday (May 12). U.S. Commerce Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer said there had been “significant progress” and that details would be released on Monday.
High tariffs put American consumers at risk of paying higher prices for goods, and even facing shortages of some products. Last week, the first shipment of Chinese goods subjected to the 145% tariff arrived at U.S. ports.
“If the situation doesn’t change soon, many products will disappear from store shelves. That’s what American consumers will witness in the next 30 days,” Cordero said.
Currently, 63% of the goods arriving at the Port of Long Beach are from China, a higher proportion than at any other U.S. port. However, this figure has dropped from 72% in 2016 as U.S. retailers have increasingly sourced goods from other countries amid ongoing U.S.-China trade tensions.
Maersk, the world’s second-largest shipping company, told CNN that the volume of goods transported between the U.S. and China has now fallen by 30-40% compared to normal.
“If U.S.-China tensions don’t ease, and if the U.S. doesn’t secure more trade agreements, these negative impacts will take root and become even more severe,” said Vincent Clerc, CEO of Maersk.
