The first Chinese cargo ship subject to 145% tariffs arrives at the Port of Los Angeles.

Trump’s 145% Tariff Hits Chinese Cargo Ships, U.S. Consumers Left Struggling

On May 6, CNN reported that following former President Trump’s announcement of so-called “reciprocal tariffs,” U.S. imports from China have dropped sharply. Industry insiders are warning that within weeks, American consumers will face price hikes and shortages of certain goods.

“This week, our (Port of Los Angeles) cargo volume is down approximately 35% compared to the same period last year,” said Gene Seroka, Executive Director of the Port of Los Angeles, in an interview. He confirmed that this was the first batch of Chinese cargo ships arriving at the port after Trump’s announcement of the new tariffs.

Seroka noted that cargo volume on these vessels had dropped significantly, with imports from China falling by more than 50%.

“Many American importers have canceled previous orders because they’re unwilling to pay the steep tariffs, which could more than double the prices of Chinese goods,” he explained. According to Seroka, the Port of Los Angeles originally expected 80 ships to arrive in May, but 20% of those have already been canceled. So far, customers have also canceled 13 voyages scheduled for June.

“Even so, we don’t know how long this situation will last,” Seroka warned. “Many U.S. retailers and importers have told me that the prices of these products have surged to about two and a half times higher than just last month.”

Ryan Petersen, CEO of American logistics and freight forwarding company Flexport, said some retailers are opting to pay for warehouse storage in China rather than import goods into the U.S., as this is cheaper than paying the tariffs.

Petersen believes shipping volumes may continue to decline, potentially by as much as 60%, as importers and retailers resist absorbing the high tariff costs. He warned U.S. consumers will notice the impact soon.

“A 60% drop in container volume means a 60% drop in incoming goods,” Petersen told CNN. “It’s only a matter of time before inventories run out, leading to shortages and price increases.”

CNN cited data from the National Retail Federation (NRF) forecasting that U.S. imports in the second half of 2025 will fall at least 20% year-over-year, with imports from China seeing an even steeper decline. JPMorgan Chase expects U.S. imports from China to drop by 75% to 80%.

Since taking office, Trump has launched trade wars globally. He has now imposed a 145% tariff on Chinese imports, and the “de minimis” exemption for goods from mainland China and Hong Kong expired on May 2. Chinese vessels have also become targets for heavy tariffs under the Trump administration.

According to CNN, many U.S. businesses rushed to stock up on materials, goods, and consumer products before the tariffs took effect. In March, the U.S. trade deficit widened unexpectedly to a record $140.5 billion. Economists predict that the surge in imports will continue for a few weeks as ships arrive, but will collapse sharply afterward.

Daniel Vielhaber, an economist at financial services firm Nationwide, stated in a client report on May 6:“Businesses front-loaded orders of consumer goods, capital equipment, and other items in Q1 to prepare for April 2’s ‘Liberation Day.’ With the new tariffs in place, we expect inflation to rise further, putting more pressure on already slowing consumption and economic growth.”

Wells Fargo economists also wrote to investors the same day:
“If goods were shipped before the tariff imposition date or en route to the U.S. and received before May 27, they can still enter duty-free. This gave companies more time to stock up, which will be reflected in April’s data. Beyond that, we expect a sharp slowdown in trade.”

Meanwhile, Americans are still buying from existing inventories stored in domestic warehouses. But CNN warned those inventories are beginning to run low.

Petersen told CNN last week: “If this continues for a few more weeks, retailers will run out of stock, and by summer, we’ll be seeing product shortages and empty shelves.”

Seroka also forecast a major reduction in consumer choice in the U.S. He warned:
“About 90% of global trade moves by sea. At the Port of Los Angeles, around 45% of our business is related to China—including furniture, electronics, appliances, clothing, and footwear… These tariffs will ultimately be reflected in product cost structures and will be paid by American consumers.”

Bloomberg recently reported that Trump’s expanded trade barriers against China are having severe consequences on the U.S. economy. Americans who rely on relatively inexpensive Chinese products are bearing the brunt.

The report also noted growing discontent among young Americans toward the Trump administration. His aggressive trade war targeting Chinese e-commerce platforms like Shein, Temu, and TikTok could disrupt the lives of a generation accustomed to fast fashion, TikTok videos, and Xbox games—especially those newly financially independent and already burdened by inflation.