US Imports From China Slump In May As Trump Tariffs Bite, Logistics Firm’s Data Shows

U.S. maritime imports from China dropped by 28.5% in May compared to a year earlier, according to data from logistics firm Descartes, as a trade war between the two countries curtailed demand.

According to the company’s global shipping report, U.S. container import volumes fell 9.7% from April and 7.2% year-over-year after posting growth for several months.

The decline in imports was led by a 20.8% decrease in inbound shipments of Chinese goods compared to April, marking the sharpest monthly drop since March 2020, at the onset of the COVID-19 pandemic.

West Coast ports bore the brunt of the drop, with container shipment volumes at Long Beach and Los Angeles ports falling by 31.6% and 29.9%, respectively, over April. These ports are the primary destinations for Chinese goods in the U.S.

These figures represent the impact of Donald Trump’s tariffs on U.S. trade flows. In a tit-for-tat trade war with Beijing, the White House raised the tariffs on Chinese imports to a steep 145%, the highest in over a century.

Despite the tariffs being lowered on May 12 after an agreement between the countries in Geneva, the sides had accused each other of backing away from many of the commitments, including the export of rare earth magnets from China.

“China-origin imports may continue to soften in the months ahead as organizations continue to reassess sourcing strategies amid rising landed costs, and as changes to the U.S. de minimis regulation for low-value Chinese imports continue to add cost pressures to trade,” the company said.

Top officials of the U.S. and China are scheduled to continue a fresh round of negotiations in London on Tuesday.

The SPDR S&P 500 ETF (SPY) is up 2.6% for the year, and the iShares MSCI China ETF (MCHI) has gained 18.5%.

Also See: Trump Says ‘China’s Not Easy’ As London Trade Talks Stall On Day One — More Negotiations Ahead

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