Expect Shortages Soon - Cargo Ships Down By 50%

"We've lost an edge that we used to have in scientific innovation applications to goods to be sold. In many ways, that is also changing in the electronic field. Almost all of the materials that we use now are of advanced technology, I have an iPad and also an iPod, both of which are made in China. Although we have designed them here with Apple, for instance, they are manufactured overseas." ~ Jimmy Carter

"You know, if you look back in the 1930s, the money went to infrastructure. The bridges, the municipal buildings, the roads, those were all built with stimulus money spent on infrastructure. This stimulus bill has fundamentally gone, started out with a $500 rebate check, remember. That went to buy flat-screen TVs made in China." ~ Michael Bloomberg

You are finally beginning to witness the tangible effect of increasing trade tensions with China. Imposing substantial new tariffs, up to 145% on certain goods, is significantly increasing your cost of bringing products into the country. You will see a direct trickle-down effect of paying higher prices and seeing fewer of many various kinds of products on store shelves in the short term.

Imports from China have already started plummeting as you and other importers and retailers cope with the considerably increased cost. The threat of tariffs that can nearly double or triple the cost of shipping goods into the country has caused many firms like yours to cancel previously planned shipments or opt to retain inventory overseas until more is known about the trade climate. Major ports you rely on, such as Los Angeles, are reported to be experiencing a sharp reduction in the arrival of cargo ships.

As existing stocks in American warehouses get depleted, you will begin to feel it. The reluctance of retailers you shop at to order new shipments at the higher tariff rates will lead to shortages on shelves as well as decreased variety for you. Searching for specific items, you may find they are no longer available or will cost significantly more than before the tariffs were put into effect.

This drastic plunge in imports, particularly Chinese ones, should erode your purchases and become a drag on the speed of overall economic growth, according to experts and economists you may follow. Even as shipments that departed earlier may still make their way duty-free, currently, the direction of trends leans towards ongoing diminishing merchandise coming into the country. This is setting the stage for a potentially expensive and uncertain time for your family, the full effects of which are predicted to be realized more in the months ahead. Products you commonly buy, such as apparel, electronics, toys, and home goods, will continue to be in short supply.