Trump’s tariffs have reportedly caused an up to 50% plummet in exports at some ports, and goods expected to arrive in the next month ‘simply won’t’


- The prices have led to a drop in American exports Around the world. Products that were formerly intended for ports around the world now remain in the United States at the port of Portland, exports have dropped by 50%.
While the trade war of President Donald Trump continues to roll, the American products which would have been sold around the world have remained trapped in the country.
When the United States has placed prices on dozens of countries, some have retaliated, hampering the ability of the United States to exchange with the rest of the world. One of the first effects of prices was a reduction in imports to the United States, which suddenly placed exorbitant samples from the products. But now, several weeks after the prices were announced in early April, a new effect of prices appeared: the United States products have trouble being sent abroad to potential customers abroad.
“One person’s exports are importance from another person,” said Peter Swartz, director of sciences of the Altana supply chain management startup. “If there is a trade war, the two parties will see their imports and their exports affected.”
Among the most difficult exports, there was exports to China, which was specifically targeted by the Trump administration with its own range of 145%prices. China then retaliated with its own 125% tariffs on American products. US exports to China in April and May decreased 40% in annual sliding, according to data provided by Altana.
“The world is fragmented as blocks as globalization takes place – we see a rearrangement of world supply chains for both the United States and in general, through the multiple levels of the supply chain,” said Swartz. “The most obvious are the rearrangement of exports far from the very tariff American China Trade.”
However, American exports to certain countries increased during the same period in April and May. For example, exports to India increased by 5%, according to Altana data.
The prices – and in particular those implemented in China – have the potential to reclassle the global trade routes, according to Swartz. He explained that, as China and the United States limit their trade, world goods will be reacted elsewhere. There is also the fact that when American companies move their production facilities outside of China, global shipping routes will adapt to traveling between places like India which could see an increase in manufacturing.
“What it will be like, it is a rearrangement of the supply chains to correspond,” said Swartz. “So you could see more flows from India.”
American port data also shows a drop in exports at all levels, not just to China. The trend started in January and struck most American ports, according to data from the container monitoring software company in Vizion, reported for the first time by CNBC. The data, which measured the number of container reservations for the five weeks before the announcement of Trump prices and the five weeks after their implementation, found decreases in almost all the main American ports.
The port with the most steep decline between these five -week periods was the port of Portland, which had a 50% drop in exports. However, this port has a small number of shipping containers compared to other American ports.
Some of the largest ports in the country have also experienced a sharp drop in the volume of shipping exports. The port of Savannah saw the exports fall by 13%, according to Vizion data. On the west coast, the port of Los Angeles, which was one of the first to ring the alarm, had 17% of the lower exports. In Norfolk, VirginieExports dropped by 12%.
“We have not seen anything like it since the disturbances of summer 2020,” the CEO in Vizion, Kyle Henderson, told Vizion CNBC. “This means that the goods that should arrive in the next six to eight weeks will simply not do so. With higher cost driving prices, small businesses interrupt orders. Products that have once moved reliably are now twice as expensive, forcing importers to difficult decisions. ”
The leaders of the expedition underlined the slowdown during the profits season. Martin Fruergaard, the CEO of the navigation of the Pacific Basin based in Hong Kong, said that investors' prices and “other protectionism measures” could “delete commercial volumes”. Meanwhile, Matthew Cox, CEO of the United States giant, Géant Matson, predicted the possibility of new developments.
“We believe that we are in the first rounds of American-Chinese commercial negotiations and we expect disruptive conditions in the transpacific,” Cox said during a profits last month.
Trump administration officials are in trade negotiations with several countries in order to conclude agreements that could reduce prices and, therefore, the costs that should increase for companies around the world. The last count, according to the Treasury Secretary Scott Bessent, is that the United States is in simultaneous talks with 17 countries, and that an agreement with India seems closest to the finish line. Many companies await these offers to conclude before making other movements, which also slows the world shipping.
“General global economic uncertainty is perpetuated through the supply chain even along commercial connections that are not specifically tariff,” said Swartz.
This story was initially presented on Fortune.com