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Trump tariff threat helps lift US ocean imports
Dec 18, 2024 3:35 AM

*

Retailers and manufacturers advance imports to avoid

potential

tariffs

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U.S. imports rise 12.8% in November, Descartes reports

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Importers brace for quick Trump tariff implementation

By Lisa Baertlein

LOS ANGELES, Dec 18 (Reuters) - When U.S. presidential

candidate Donald Trump started talking about new import tariffs

on the campaign trail, Danny Reynolds checked the tags on

wedding dresses in his bridal salon and sped up some shipments

to his independent clothing store in Indiana.

"I was grabbing tags specifically to look at the country of

origin and it was China, China, China, China, China, China,"

said Stephenson's of Elkhart boutique owner Reynolds, who moved

deliveries of around 20 bridal gowns ahead by about two months.

Trump has threatened to slap tariffs of at least 10% on

goods from China and to impose levies of 25% on products from

both Mexico and Canada, prompting importers like Reynolds to

import early to avoid higher costs that are often passed on to

consumers.

A potential second round of Trump tariffs once he takes

office on Jan. 20 is the latest addition to a laundry list of

factors - including healthy U.S. consumer spending, federal

investment in electric vehicle manufacturing and the risk of

strikes at East and Gulf Coast seaports - prompting a surge in

U.S. imports.

Citing examples of front-loading behavior,

container-tracking software provider Vizion said Walmart ( WMT )

, the biggest user of container shipping, has increased

bookings consistently each week beginning with the third week of

September.

It also said Columbia Sportswear ( COLM ) has shown

consistently higher year-over-year bookings each week since the

U.S. presidential election on Nov. 5.

Those retailers did not immediately respond to requests for

comment.

"In November, U.S. manufacturers, particularly in the

consumer goods sector, increased their safety stocks to help

blunt any immediate tariff increases," John Piatek, a vice

president at procurement and supply-chain software provider GEP,

said in a statement.

U.S. imports of containerized goods notched a 12.8%

year-over-year increase in November, according to trade data

supplier Descartes Systems Group ( DSGX ).

Imports from China, which are subject to new tariffs under

President Joe Biden and possibly more from Trump, were up 13.3%

last month, Descartes said.

Elevated import levels could extend through the first

quarter of 2025 as shippers seek to avoid any new tariffs under

Trump, BMO Capital Markets analyst Fadi Chamoun said in a client

note.

Importers have not disclosed how much more cargo they are

bringing in due to the varied factors that are driving front

loading.

Companies expect Trump will usher in a "very fast

implementation of new tariffs," said Port of Los Angeles

Executive Director Gene Seroka, adding that the country's

busiest container seaport is on track for its busiest December

on record.

If the first Trump tariffs in 2018 through 2019 are a guide,

those importers could slam on the brakes in the coming months,

Seroka said.

"We saw a run-up of cargo before tariff milestone or

implementation dates, and then a huge drop off," Seroka said.

"Everybody's very uncertain as to what to expect," retailer

Reynolds said, adding that his key suppliers also include

Canada-based sportswear brands Joseph Ribkoff, Frank Lyman and

Tribal, which did not respond to requests for comment.

"The best hope is that some of this is, for lack of a better

way to put it, scare tactics on the President-elect's part," he

said.

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