LOS ANGELES, Sept 12 (Askume) – U.S. presidential candidate Donald Trump’s plan to raise import tariffs after his re-election to the White House in November would push up freight prices and accelerate inflation, shipping and retail experts said, just as it did during his 2017-21 term.
Trump, who is running against Democratic Vice President Kamala Harris in the November 5 election, hasTo boost American manufacturing, it has proposed imposing tariffs of 10% to 20% on almost all imported goods as well as goods coming from China .
During Tuesday’s debate, Harris called her proposal a “Trump sales tax” that would hurt working families and did not reveal her tariff plans. US President Joe Biden has shelved his proposal to impose tariffs on Chinese electric vehicles as high as 100% and tariffs on semiconductors and solar cells as high as 50%. He also proposed new 25% tariffs on lithium-ion batteries, steel and other goods.
Peter Sand, chief analyst at shipping pricing platform Xeneta, said: “Trump’s import tariffs are ‘history repeating itself’ and will destroy the maritime container shipping market, and consumers will have to bear the cost.”
The National Retail Federation, which represents Walmart (WMT.N) and other companies that account for about half of container shipments, is among the industry groups opposing Trump’s proposed tariffs.
“Tariffs are taxes imposed on imported goods that act like a sales tax,” the NRF said earlier this week. They raise the cost of goods for consumers and hurt businesses, it said. Andworker
“We are an example of how domestic production cannot continue despite tariffs,” said Matt Priest, CEO of American Footwear Distributors and Retailers. He added that 99% of shoes are now imported.
“We will be engaging with policy members and discussing how American consumers will pay for the tariffs.”
After the Trump administration announced new tariffs in 2018, freight rates across the maritime container shipping market surged by more than 70%. Xeneta said the off-contract spot rate for shipping a 40-foot (12.19-meter) container on the busy trade route from China to the U.S. West Coast rose 75% to $2,604 between Jan. 1 and Nov. 1 of that year.
The tariffs have also disrupted supply chains, with shippers fighting for extra cargo space on ships, trucks and trains, while unloaded cargo has crowded ports and warehouses, leading to a halt in demand for everything from furniture to shoes and steel.
Reasons for Iran-backed Houthi attackShipping rates have soared for vessels near the Suez Canal trade shortcut . That pressure, combined with a recent surge in imports of holiday supplies and industrial materials, has pushed the cost of shipping a 40-foot container from Shanghai to New York up to $10,000.
