Chinese imports to US ports peak early
Chinese imports to US ports rose more than expected in June, suggesting that some retailers moved up orders to insulate themselves from a trade war that threatens to send up costs on a growing number of consumer products.
Retailers such as Walmart and Amazon face uncertainty due to US President Donald Trump’s threat to impose more tariffs on Chinese goods, and the jump in imports from the country was likely because of “preemptive buying in anticipation of the tariffs”, said Ben Hackett, founder of maritime consultancy Hackett Associates.
The US container port peak season is traditionally driven by orders for Chinese-made clothing, electronics and toys for the back-to-school season running from June to September, and then the winter holiday season.
The volume of loaded shipping containers from China to all US ports was up 6.3% in June from a year earlier after falling 6.9% in May and 3.9% in April, said Gene Seroka, executive director of the Port of Los Angeles, the busiest US container port for ocean trade with China.
Data about specific products and buyers, which are compiled from paperwork filed when goods are delivered, were not immediately available.
China said on Friday exports unexpectedly accelerated in June. The commerce ministry confirmed that Chinese exporters were front-loading shipments to the US to get ahead of expected tariffs.
Walmart, Amazon and other retailers declined to comment.
Trump has vowed to reset the US’s global trade agreements, which includes a threat to impose tariffs on more than $500bn worth of Chinese goods. Retailers, who place orders for general merchandise up to a year in advance, can offset additional costs by raising prices or finding new suppliers in countries not subject to import levies.
On July 6, the US imposed 25% tariffs on $34bn of Chinese goods, including flash drives, remote controls and thermostats, from a list of $50bn in products first proposed in April.
China quickly fired back with tariffs on an equal value of US goods, including soya beans, whisky, cotton and motor vehicles.