With the US presential elections seemingly in the balance, Maersk CEO Vincent Clerc has cautioned against overstating the effects of tariffs on the container shipping business, claiming what really matters is what is consumed in the US, reports Seatrade Maritime.
Press conference
Speaking at a press conference last week, Maersk CEO Vincent Clerc sought to allay fears that a new intensely tough tariff regime would add to inflationary pressures and risk taking the heat out of retail sales, and therefore demand for freight imported on container ships.
The bi-partisan Petersen Institute for International Economics (PIIE) has studied the effects of tariffs on US consumers that were introduced in the first Trump presidency.
“A recent Canter for American Progress analysis found that a 10% tariff would act like an annual consumption tax increase of about $1,500/household; a taxpayers’ organization forecast even higher costs (Duke and Mulholland 2024). Such burdens on households also raise prices, a particularly undesirable consequence given concerns about inflation in the post-COVID economy,” reported PIIE.
Cargo flows may be affected, however, with a push to import freight before any tariffs become effective, said Hookham: “The election takes place on 5 November, but a new president will not be in place until early January, and any new import regime is unlikely to be in place before February, so there could be a rush to get cargo in before Chinese New Year on 29 January.”
Sea-Intelligence had already detected an increase in inventory levels in its 30 October report.
Raised inventories could delay the inflationary pressures that tariffs bring, but in the longer term sold inventories will need to be replaced and will become subject to a new tariff regime.
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Source: Seatrade Maritime
