Trump's Tariff Gamble... "Boomerang Back to the US"

Container bookings from China to the US drop 45% in a year

Apple and Tesla face production and export disruptions due to double tariffs

Shein raises product prices by up to 377% in a day

Shipping costs and prices surge ahead of 'small duty-free' abolition

Since the Donald Trump administration imposed a high tariff of 145% on Chinese imports, container bookings from China to the US have plummeted. As a result, concerns about supply chain instability and rising prices of imported products in the US are becoming a reality.

According to container tracking service Vision, the number of standard 20-foot container bookings from China to the US from the 14th to the 20th of this month was 81,239, a decrease of about 45% compared to the same period last year. Compared to the week before Trump's inauguration (February 10-16, 112,741 bookings), the number has decreased by more than 30,000.

Globally, the number of bookings during the same period also decreased by 22.37% compared to the previous year. The Port of Los Angeles, a major gateway for Chinese imports, expects the number of scheduled arrivals for the week starting on the 4th of next month to decrease by about one-third compared to a year ago.

Adam Miller, CEO of US logistics company Flexport, said, "Some of our major clients have canceled orders or stopped orders, especially from China," adding, "We are discussing restructuring the supply chain to avoid tariff burdens." Experts warn that if a tariff reduction agreement between the US and China is reached, bookings could suddenly surge, leading to a sharp increase in shipping rates.

The biggest victims of the US-China tariff war are global companies like Apple and Tesla, which have production bases in China. They have a structure where they import raw materials or parts from the US, assemble them in China, and then export them back to the US, so they have to bear double tariffs in both China and the US. They have to pay a 125% tariff when importing parts to China and a 145% tariff when exporting finished products to the US. These companies are reducing exports to the US and are watching the results of the tariff negotiations.

President Trump claimed that high tariffs would have a positive effect on the US economy, but in reality, it is resulting in rising prices of imported products in the US. Chinese online retail giant Shein, which has targeted the US market with low-priced products, has significantly raised the prices of major products since the 25th. The average price of the top 100 beauty and health products rose by 51% compared to the previous day. The price of a set of 10 kitchen towels surged from $1.28 to $6.1, a whopping 377% increase in just one day.

It seems that prices have been adjusted ahead of the abolition of the 'small duty-free system'. US Customs has exempted products under $800 from tariffs and customs fees, but starting from the 2nd of next month, a fee of $100 per mail item will be imposed. Further increases are scheduled after June 1st.

As the side effects of tariff imposition grow, US state governments are also filing lawsuits one after another. On the 23rd, 12 states including New York, Oregon, and Arizona filed a lawsuit in the Federal International Trade Court demanding the suspension of tariffs, claiming that "President Trump arbitrarily interpreted the International Emergency Economic Powers Act (IEEPA) and imposed tariffs without authority."

Even supporters are turning their backs. The Washington Post reported that a nonprofit organization supported by Charles Koch, a prominent Republican donor, is also leading a lawsuit against the Trump administration's tariff policy.

Reporter Da-yeon Lim and Han-gyeong Jeong allopen@hankyung.com