Trump tariffs in China mean “irreversible” damage to many businesses

Apple iPhone and other technology equipment, from chips to PC received Chinese tariff From President Trump on Saturday, but for most of the US economy and small business owners will soon be irreversible 145% tariffs imposed on Chinese imports.

Canceled the freight orders and an abandoned load According to the chains of supply chains, China quickly becomes the norm in the trade war between the United States and China, as enterprises across the US industry put a complete stop for export of containers, and tariffs get like a ton of bricks.

“Furniture manufacturers in China have noticed a complete termination of orders from US importers, and we hear the same toys, clothes, shoes and sports equipment,” said Alan Murphy, founder and CEO of Sea-Intelligence.

“We had the same thing in Southeast Asia, but after the 90-day payment of these orders was restarted,” said Brian Burke, Chief Commercial Sea Logistics, while the canceled orders continue.

“Almost everything is stopped, as it is due to Chinese business,” said Alan Bayer, CEO of OL USA.

“A total of 145% of Trump on Chinese imports stop the majority of trade between the US and China,” said economist Eric York on Thursday, Vice President on Federal Tax Policy Center for Tax Policy for Exchange.

“There may still be some things without any substitutes, which companies should simply make a bill, but for the most part it cut off,” York said.

As it became clear in the last week that China will remain the main goal of Trump administration tariffs – after 90-day appeal It was provided to all other countries that are expected to be affected by the new tariffs that have passed, and it is that China cannot produce low honors goods in China. The new technology release can be partially explained by how the supply chain works, but also enhances where the greatest pain will be felt.

“Higher marks and more technical goods, such as electronics, equipment, medical equipment and pharmaceuticals, cannot easily move the search, as the creation of high-tech production requires time and significant capital,” said Murphy.

Before exemption from the technical tariffs, he says that manufacturers of these goods analyze what components can be obtained elsewhere, and first of all seek to reduce stocks in the US in the short term. There are agreed efforts to move production to Southeast Asia, primarily Vietnam or India. The price decrease in Europe was also considered to continue production or opening the production lines.

“No risk and small business load can support”

Stephen Lamar, CEO of the American Association and Shoes, said sudden changes in policy and high tariffs violate supplies at no pandemic levels.

“With unnecessary high levels of US import tariffs from China, many companies have nothing left to cancel orders,” Lamar said. “Permanent switching means that the new tariff expenses are not accurately represented and predictable until the goods come to the port, and high rates create accounts that cannot be paid. This is not a risk and load that small business can support.”

Lamar said that without alternative search on the horizon for many of these companies, especially small businesses, this sudden lack of orders would immediately lead to lost sales and a wide lack of products. “The expansion of the pause of the trade war for importing in China is now needed before the damage becomes irreversibly,” Lamar said.

Integrated logistics giant Mayers warned that on the side of the container its business drop in orders in conjunction with the possibility Tariffs for shipbuilding on “Chinese” courts It will also come into force next week, lead to “massive restructuring of all liner services in North America.”

“And it will take a few months to deal with the mess, with overloaded and resume for months,” Maersk wrote to customers.

Murphy said that all the Chinese manufacturers he talked to, none of them seeking to transfer production to the US, and the reason does not understand the final goals of the administration.

“The biggest problem here is the complete uncertainty of the actual final game of the Trump administration,” he said. “Nobody will consider big investments in the US production if the tariffs will simply fasten for negotiations on the best trading transactions. If the administration actually pursues the goal of American reindustrialization, then a long-term tariff plan should be clear and less talk about” 4D mine “and” transaction art “. Creating uncertainty, “he added.

Maintenance of cargo treatment is one way to mitigate the effects of tariffs. Logistics providers can offer a repository that allows freight transport to come to the United States without chargeing the tariff for a while. Relate Zones of foreign trade And other transit delay methods allow you to get temporary delay in trading duties.

“The current circumstances are unprecedented,” said Karsten Kildal, Chief Commercial Director AP Moller-Maersk.

An abandoned load

The fate of the abandoned ocean and air transportation is a cargo that is not registered and paid for by the shipping company or the freight expedition responsible for the payment of customs on behalf of their client – not clear, but the rules change the port to the port and contract.

Port representatives say CNBC that they are not usually reported about the abandoned cargo. The Terminal Conference Agreement in New York states that the cargo, which remains at the terminal for over 30 days, will be considered as abandoned and sold to raise payments on demura from NYTC -accusations that are estimated for exit for terminals. It also states that final responsibility for costs usually depends on specific delivery contracts. “If BL (invoice) was not transferred to the carrier, it is the liability of the shipper. The kennel can decide to return the shipment back (ie re -export), destroy or donate it.”

Usually, shippers prepare a “refusal letter” for US customs purposes for the sold or auction, with sales/auction revenues pay any costs such as using a container and chassis, as well as with a balance sheet.

The terminal can move the abandoned load to the bound composition or leave it at the terminal and sell it from there. There is a market for the purchase of abandoned goods. Companies such as JS Cargo & Fraight Nestosal, Auctions FR8 or US goods, buy an abandoned cargo, and then sell it in discounts, retailers, liquidators, online searches, such as Amazon, drugs, outlets, ransom centers, liquidators and closed buyers.

Maersk says that CNBC many shippers unfold “expectation and look” -ada, and in a recent warning to customers wrote that until there is no clearer picture, customers will be cautious about the level of their stocks and continue to study ways to create additional flexibility in their supply networks. Across the global network of warehouses, shopping centers, port terminals, ships and freight “additional flexibility” is what many customers are looking for now.