Amid Donald Trump’s ongoing trade war with China, U.S. companies are slowing or canceling orders from Chinese suppliers, raising concerns about potential empty store shelves. Freight traffic to the Port of Los Angeles is expected to drop by 31 percent for the week ending May 10 compared to last year, according to data from the ship tracking platform Port Optimizer.
Earlier this month, Trump sharply increased tariffs on Chinese imports to 145 percent, just as retailers typically ramp up orders ahead of the fall and winter shopping seasons. According to reports, China had eased some of its retaliatory tariffs—specifically, rolling back a 125 percent tariff on certain U.S. goods like microchips—in an effort to prevent further escalation.
Jonathan Gold, vice president of supply chain and customs policy at the National Retail Federation, said retailers are struggling to make purchasing and pricing decisions amid the tariff uncertainty. “They’re making their holiday buying decisions now,” he reported. “It’s a real challenge to navigate the unpredictability.”
Without changes to Trump’s tariffs, companies will face steep import fees—at least $145 for goods valued at $100—potentially wiping out profits unless consumer prices rise significantly. Several companies, including Target, have already reduced or canceled their orders from China, according to reports.
The National Retail Federation projects imports could fall by 20 percent in the second half of the year if tariffs remain in place. Industry leaders are drawing comparisons to early COVID-19 shortages, warning that supply disruptions could soon be visible to consumers.
Sean Stein, president of the U.S.-China Business Council, warned that shortages could start appearing “in a couple of weeks.” He added, “If the administration waits for hoarding and empty shelves before acting, it will already be too late.”
On Thursday, Trump claimed that talks with China were “actively” underway and that he intended to lower the 145 percent tariffs substantially as part of a potential deal. However, Beijing quickly refuted these claims. He Yadong, spokesperson for China’s Ministry of Commerce, said that reports of progress in U.S.-China negotiations were “groundless” and “without factual basis.”
