Retailers warn of empty store shelves as China tariffs slash imports

President Donald Trump’s 145% tariffs on Chinese goods, imposed in April, have slashed cargo shipments by over 60% (per Flexport), which could trigger a supply shock across the US economy.

The Port of Los Angeles, the main US entry point for Chinese goods, expects vessel arrivals next week to fall by nearly 33% compared to the same period last year. This week, ship arrivals are already down 11%, according to Port Optimizer.

Retailers warn of empty shelves
While the impact has been mostly invisible to shoppers so far, major retailers like Walmart and Target warn that store shelves could soon go empty and prices could rise sharply. Toymakers, holiday decoration suppliers, and logistics firms already report significant delays. 

Retailers are pressing the White House to roll back tariffs before the disruptions deepen.

Shipping bottlenecks grows
The number of cargo ships leaving China for the US has dropped by 40% from this year’s peak, creating port slowdowns and logistical bottlenecks. 

Shipping rates have plunged as cancellations surge; 80 sailings were scrapped in April alone, 60% more than any month during the pandemic.

Economic fallout ahead
While some companies shift orders to Southeast Asia, economists expect US imports to fall 7% in Q2—the steepest drop since 2020. The World Trade Organization (WTO) warns US-China trade could decline by as much as 80%.

Consumer confidence has slumped to record lows, while international tourism into the US is slowing.

Experts warn that as imports decline, demand for trucking, logistics, and distribution will also drop starting next month, leading to layoffs across supply chains and the retail sector.