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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.