US Supply Chains Face Crisis as Tariffs Cause 60% Shipment Drop

The Trump administration's 145% tariffs on Chinese imports have triggered a drastic 60% reduction in cargo shipments from China, causing widespread disruption to U.S. supply chains and raising concerns about imminent supply shocks. Retail giants such as Walmart and Target have warned of empty shelves and higher prices as businesses struggle to replenish inventories ahead of key shopping seasons. The ripple effects include increased shipping costs, significant delays at U.S. ports, and a shift by importers toward Southeast Asian suppliers, though these alternatives cannot fully fill the gap left by China. Economists and industry experts caution that the resulting supply chain bottlenecks could lead to 'Covid-like' shortages and layoffs across trucking, logistics, and retail. While there are emerging signs of possible trade negotiations and limited tariff exemptions, the broader economic strain is expected to persist, with risks of prolonged congestion and elevated consumer prices. The impact is already being felt globally, as altered shipping routes disrupt markets beyond the U.S., affecting Europe and other regions reliant on Chinese goods.