Trump tariffs on China: Empty shelves and rising prices in the US

Daily Wrap Trump tariffs on China: Empty shelves and rising prices in the US Przemysław Ciszak • 5 hrs • 2 mins read Tariffs imposed by the Trump administration on China could lead to empty shelves in Walmart and Target stores and price increases. Experts predict shortages and layoffs in the transportation and retail sectors. This will be a shock to the American economy. "The clock is ticking." The Trump administration has imposed tariffs on Chinese goods, triggering trade conflicts between the US and China. According to Bloomberg, tariffs have increased by 145 percent since April, leading to a 60 percent drop in the transportation of goods. As a result, many companies, including Walmart and Target, could face shortages and rising prices by mid-May. Also read: Lavrov under pressure: Putin's army strikes Kyiv again "Time is running out," said Jim Gerson, president of The Gersons Companies, pointing out the dangers of delivery delays ahead of the holiday season. A shock for the US economy Experts spoken to by Bloomberg warn that the impact of the tariffs could be felt throughout the US economy. Shortages are predicted in sectors such as transportation, logistics, and retail. In addition, uncertainty surrounding trade policy could lead to layoffs. Meanwhile, China has eased some tariffs on American technology and pharmaceutical products despite public opposition. American importers are already looking for alternatives to China in Southeast Asia, such as Cambodia and Vietnam. Judah Levine, head of research at the booking platform Freightos, warned that "a significant slowdown" is likely to occur before trade stabilizes. Data from Hapag-Lloyd shows that 30 percent of bookings on the China-US route have already been canceled, further exacerbating supply chain disruptions. President Trump announced that he will not waive tariffs unless China offers something "significant" in return. Nevertheless, there are signs of de-escalation, raising hopes that trade tensions may be easing. In the meantime, American companies must prepare for potential procurement difficulties and rising prices. Bloomberg reports that the World Trade Organization is forecasting a potential decline in US-China trade of up to 80 percent, and US Treasury Secretary Scott Bessent called the current situation "essentially a trade embargo." Economists expect US imports to decline 7 percent year-on-year in the second quarter, which could put pressure on inflation and increase the risk of recession.