As US retailers worry about supply chain, China weighs next move

  • Trump's tariffs on China are expected to increase prices for everyday items
  • Trump on Wednesday pulled back on a majority of his tariffs
  • China now faces a 145% tariff

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LOS ANGELES (NewsNation) — President Donald Trump’s tariffs on China are expected to increase prices for everyday items. The trade wars have already roiled financial markets and plunged businesses into uncertainty — all while economists warn of potentially weakened economic growth and heightened inequality.

But there is another concern: The supply chain.

Bookings for ocean containers from China to the U.S. are plummeting, signaling a potential seismic shift in Trans Pacific trade and impacting supply chains.

Container freight bookings are down by an estimated 25% on routes to and from Asia. Due to canceled orders for Chinese goods, freight traffic is expected to drop even further.

Chinese companies that sell products on Amazon are preparing to hike prices for the U.S. or quit that market due to Trump’s tariff hikes, sellers and the head of China’s largest e-commerce association told Reuters.

China is home to around half of Amazon’s sellers, with over 100,000 Amazon businesses registered in the southern city of Shenzhen alone. The companies generate annual revenues of $35.3 billion, according to e-commerce services provider SmartScout.

China also hosts the manufacturing bases of other major e-commerce platforms like Shein and Temu. Imports and exports involving cross-border e-commerce were worth 2.63 trillion yuan ($358 billion) last year, according to China’s State Council.

Reuters contributed to this report.

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