For the first time since the COVID pandemic, zero cargo ships are on their way from China to the two primary ports in California. This sudden halt in trade comes in the wake of the Trump administration imposing substantial tariffs on Chinese imports.
What Happened: According to a report, no cargo vessels had left China for the two primary West Coast ports in the past 12 hours. This is a stark contrast to the situation just six days ago when 41 vessels were slated to depart China for the San Pedro Bay Complex, which comprises the Port of Los Angeles and Port of Long Beach.
The ongoing trade war initiated by President Donald Trump has led to the implementation of heavy tariffs on a majority of Chinese imports last month.
This has resulted in a significant decrease in the number of ships carrying cargo to American ports. The sudden dip in vessels departing from China has sparked concerns among port officials, reports CNN.
Mario Cordero, the CEO of the Port of Long Beach, expressed his concerns stating, “That’s cause for alarm.” The country’s busiest ports are experiencing a steep drop in cargo, with the Port of Long Beach witnessing a 35-40% fall compared to the usual cargo volume.
Also Read: Trump Proposes Major Cut in China Tariffs, Signaling Shift in Trade War
Trade representatives from the US and China are set to meet in Geneva this weekend in an attempt to diffuse the escalating trade war. President Trump has proposed reducing the tariff rate with China to 80%, but the final decision rests with Treasury Secretary Scott Bessent.
For consumers who are already grappling with higher prices or shortages of certain items, a resolution can’t come soon enough.
Cordero warned, “If things don’t change quickly…we may be seeing empty products on the shelves. This is now going to be felt by the consumer in the coming 30 days.”
Why It Matters: The abrupt halt in cargo shipments from China to the US is a direct consequence of the ongoing trade war between the two economic giants.
This has led to a significant drop in cargo volume at major US ports, raising concerns about potential supply chain disruptions and price hikes for consumers.
The upcoming meeting between US and Chinese trade representatives will be crucial in determining the future course of this trade war and its impact on global trade dynamics.
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