Businesses brace for Trump tariffs on Chinese goods

Businesses are preparing for the spate of new tariffs on Chinese goods promised by former President Trump on the campaign trail, making advanced purchases of imported goods and buying up extra warehouse space ahead of the election.

Trump has pledged to impose a 60-percent tariff on Chinese goods as well as general tariffs of 10 to 20 percent on all imports.

While those numbers are subject to change based on Trump's whims, the former president would have broad power to impose steep new taxes on imports without congressional approval.

Trade and manufacturing experts say Trump's tariff threats are already having an effect on global supply chains.

Sébastien Breteau, CEO of supply chain compliance firm QIMA, said Chinese exports to North America are up 13 percent since the start of 2024 and were up 18 percent between July and September.

“We are seeing a bump, a surge on orders preelection,” Breteau told The Hill.

He said the increase was a result of anticipated tariffs during a second Trump administration, though he noted it’s relatively small compared with the ordering surges that occurred during the pandemic.

“In 2021, the surge was much bigger, but there is a decent level of anxiety,” he said. “They anticipate, but they don’t want to overstock. There is no panic when we speak to our clients.”

Other supply chain experts are seeing similar adjustments from importers, distributors and retailers ahead of a possible shift in U.S. trade policy.

“There’s some of that,........

© The Hill