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yesterday

U.S.-China Trade Standoff Deepens as Tariffs Disrupt Supply Chains

Major U.S. ports report steep declines in cargo traffic, raising concerns over job losses and potential consumer shortages.

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Stacked containers in the Port of Los Angeles, California, on May 6, 2025.
Shipping containers are stacked at the Port of Los Angeles, California, on May 6, 2025.

Overview

  • President Trump’s 145% tariffs on Chinese imports and China’s 125% retaliatory levies have caused a sharp downturn in U.S.-China trade flows.
  • Major West Coast ports, including Los Angeles, Long Beach, and Seattle, are experiencing canceled sailings and reduced vessel arrivals, with Seattle reporting no container ships docked earlier this week.
  • Port of Los Angeles expects a 35% drop in import volumes this week, while overall May traffic could fall by 20% year-on-year, according to port officials.
  • China's exports rose 8.1% in April, but shipments to the U.S. plunged by over 21%, reflecting the impact of the tariffs on transpacific trade.
  • U.S. and Chinese officials are set to meet in Switzerland this weekend for trade negotiations, but uncertainty persists with potential risks of empty store shelves and rising prices by summer if no resolution is reached.