by Michael Snyder, The Economic Collapse Blog:
Experts are telling us that the supply chain disruptions that we are facing are likely to be more severe than anything that we witnessed during the last pandemic. Anyone that believes that we can easily replace 438 billion dollars of imports from China is just being delusional. There are thousands of products that are made in China that are simply not made anywhere else. Yes, we will do what we can to mitigate the damage, but there is only so much that we can do. I just heard from one business owner that has already received numerous price increase notifications from his suppliers. And apparently there are already hundreds of products on Amazon that have had their prices raised substantially…
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Amazon merchants are hiking prices for everything from diaper bags and refrigerator magnets to charm necklaces and other top-selling items as they confront higher import costs. E-commerce software company SmartScout tracked 930 products on Amazon that have seen increased prices since April 9, with an average jump of 29% in categories, including clothing, jewelry, household items, office supplies, electronics and toys.
In many other cases, products that are manufactured in China will no longer be coming to the United States at all. In fact, President Trump is even admitting that most Chinese businesses “won’t do any business here” as long as tariff rates remain this high…
Treasury Secretary Scott Bessent said recently that no one thinks the current status quo with China is sustainable. The president was asked by Time if he agrees with that sentiment.
“Oh I agree,” Mr. Trump responded. He said China “won’t do any business here, because at 145%, it’s going to be very rare that you see business.”
Nobody can deny that President Trump is quite correct about this, and the numbers that we are already seeing are quite staggering.
For example, it is being reported that the “volume of goods shipped from China that is scheduled to arrive at the Ports of Los Angeles and Long Beach between the week of May 4 and May 10 has dropped 43%”…
US businesses began scaling back or canceling orders as President Trump ratcheted up the trade war with Beijing after returning to the White House.
The volume of goods shipped from China that is scheduled to arrive at the Ports of Los Angeles and Long Beach between the week of May 4 and May 10 has dropped 43%, compared to the same period last year, according to container-tracking software provider Vizion.
Sadly, this is just the beginning.
Container bookings for shipments from China to the United States dropped by a staggering 64 percent during the first week of April compared to the previous week…
The drop in predicted arrivals at Los Angeles follows reports from data provider Vizion of a “crash” in container bookings in April. For shipments from China to the US, bookings fell 64pc in the first week of the month compared to the previous week.
Analysts blamed the crash on importers who were cancelling shipments to “reassess costs, timelines, and broader trade strategy”.
This is leaving more container ships half-empty – and prompting more shipping companies to cancel voyages in a bid to reduce losses and stop fees plummeting.
Imagine a truck that is speeding along at 70 miles per hour and someone slams the brakes all the way to the floor.
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