Imports at the US major retail container ports are expected to continue to grow this summer as retailers stock up inventory to get ahead of higher tariffs, a new report released by the National Retail Federation (NRF) and Hackett Associates says.
“With a major tariff increase already announced and the possibility that tariffs could be imposed on nearly all goods and inputs from China, retailers are continuing to stock up while they can to protect their customers as much as possible against the price increases that will follow,” Jonathan Gold, NRF Vice President for Supply Chain and Customs Policy, said.
“Retailers will continue to do everything they possibly can to mitigate the impact of tariffs on consumers, but if we see further escalation in the trade war, it will be much more difficult to avoid higher price tags on a wide range of products,” he added.
The Trump administration increased 10 percent tariffs on USD 200 billion worth of Chinese goods to 25 percent in May, with the increase applying to imports that arrive in the United States after June 15.
The administration has also proposed to implement new 25 percent tariffs on USD 300 billion worth of Chinese goods and recently removed India and Turkey from the Generalized System of Preferences program, which allows certain items to be imported duty-free. In addition, the administration announced a 5 percent escalating tariff on all imports from Mexico, but those goods travel by truck or train and do no effect cargo numbers at US seaports.
“One must wonder who the Trump administration is trying to punish with its growing enthusiasm for tariffs,” Ben Hackett, Hackett Associates Founder, commented.
“The tariffs are offsetting much of the savings from tax cuts, and if this continues there could be tough months ahead,” Hackett continued.
