Maritime consultancy Drewry announced on Thursday, April 24th, 2025, that it anticipates a 1% decline in global container port volume as a direct consequence of the United States’ trade policies, reports Reuters.
Trade Policy Conundrum
The current trade policy implemented by the Trump administration includes broad tariffs of 10% on goods from most countries and a significantly higher 145% import duty on products originating from China. This has triggered retaliatory tariffs from China and other nations on U.S. goods.
According to a consultancy’s analysis, if two-thirds of the current tariffs remain in effect, U.S. imports from China could potentially decrease by 40%. China holds a dominant position in U.S. imports of consumer goods, industrial products, and furniture.
However, the relocation of Chinese production to countries with lower tariff rates could mitigate some of the anticipated decline in shipping demand. Drewry suggests that U.S. imports from these alternative countries could increase by as much as 15%.
The impact of these tariffs is illustrated by the experience of RC Willey Home Furnishings, a Berkshire Hathaway-owned retailer with stores in Utah, Nevada, Idaho, and California. When the U.S. escalated tariffs on China, the company halted all orders from Chinese factories, even those ready for shipment. Simultaneously, they resumed orders from Vietnam, only to pause again when the Trump administration imposed tariffs of 46% on that nation. RC Willey restarted orders from Vietnam when the tariffs were temporarily reduced to 10% for 90 days.
Retailers like RC Willey are not only grappling with the operational challenges posed by the tariffs but also observing a negative impact on consumer sentiment. As Jeff Child, president of RC Willey, notes, “The biggest killer of consumer confidence is uncertainty and that’s where we’re at right now.”
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Source: Reuters
