LOS ANGELES, Sept 12 (Reuters) -
U.S. presidential contender Donald Trump's plan to hike
tariffs on imports if he is elected back to the White House in
November would send cargo rates soaring and accelerate
inflation, just like it did during his 2017-21 term, shipping
and retail experts said.
Trump, who is running against Democratic Vice President
Kamala Harris in the Nov. 5 election, has floated second-term
plans for blanket tariffs of 10% to 20% on virtually all imports
as well as tariffs of 60% or more on goods from China, in a bid
to boost U.S. manufacturing.
In their debate on Tuesday, Harris called his proposal a
"Trump sales tax" that will hurt working families, and has not
released her own plan for tariffs. President Joe Biden has
delayed implementing a proposed
quadrupling
of tariffs on Chinese electric vehicles to 100%, and a
doubling of duties on semiconductors and solar cells to 50%. He
had also proposed new 25% tariffs on lithium-ion batteries,
steel and other goods.
"Trump's import tariffs are 'history repeating' and will
cause a spike in ocean container shipping markets - with
consumers picking up the cost," said Peter Sand, chief analyst
at shipping pricing platform Xeneta.
The National Retail Federation, which represents Walmart ( WMT )
and other companies that account for almost half of
container shipping volume, is among the industry groups opposed
to Trump's proposed tariffs.
"Tariffs are a tax on imports, operating like a sales tax
wearing a mediocre disguise," NRF said earlier this week, noting
that they drive up cost of goods for consumers and hurt workers
and businesses.
"We're the poster child of how tariffs did not keep
domestic production in place," said Matt Priest, CEO of the
Footwear Distributors and Retailers of America, pointing out
that 99% of shoes are now imported.
"We will be out there engaging with policy members and
discussing how tariffs are paid by American consumers."
Ocean container shipping market rates spiked more than
70% after the Trump Administration announced new tariffs in
2018. The off-contract spot rate to ship a 40-foot (12.19-meter)
container on the busy trade route from China to the U.S. West
Coast jumped 75% to $2,604 between Jan. 1 and Nov. 1 that year,
Xeneta said.
The tariffs also disrupted supply chains as shippers fought
for extra cargo space on vessels, trucks and trains, while the
landed goods swamped ports and warehouses, leading to higher
prices for everything from furniture and footwear to steel.
Ocean freight rates are already elevated due to ongoing
Iran-backed Houthi attacks on ships near the Suez Canal trade
shortcut. That pressure, combined with a recent surge in holiday
goods and industrial material imports recently sent the cost to
ferry a 40-foot container from Shanghai to New York to $10,000.