Will the Ship Hit the Fan?
As a notoriously negligent gift giver, I’m always looking for a decent excuse why a present might arrive past its due date (or never). Those of us who fit this description could be among the lucky ones this holiday season, as we can explain away our failings with a paraphrase of the famous line from Jaws: We needed a bigger boat. Even if the tariff-induced delays end soon, global product distribution could be sufficiently delayed to yank our supply chain into the Christmas season. Will empty shelves shelve our Christmas plans? Bloomberg (Gift Article): Trump’s China tariffs set to unleash supply shock on US economy. “Since the US raised levies on China to 145% in early April, cargo shipments have plummeted, perhaps by as much as 60%, according to one estimate. That drastic reduction in goods from one of the largest US trading partners hasn’t been felt by many Americans yet, but that’s about to change … While Trump has shown signs in recent days that he’s willing to be flexible on the import taxes imposed on China and others, it may be too late to stop a supply shock from reverberating across the US economy that could stretch all the way to Christmas.” (Maybe I’ll make you a nice card…)
+ Some of the megastores have been stocking up in anticipation of the tariff wars. Small stores don’t have that luxury. Both groups are pressuring the White House to get something done to dampen the trade war. If that doesn’t happen soon, the pressure will be nothing compared to that coming from consumers who can’t find products on shelves. Product shortages and empty store shelves loom with falling shipments from China.
+ “America’s reliance on China is easy to see in your kitchen. China leads the global production of cheap goods made in large volume, such as dishes and cooking gadgets. The United States also imports all of its household toasters, and nearly every one of them comes from China. Over decades, Beijing has spent billions to support the growth of China’s manufacturing industry. Today, the country makes nearly one of every three physical products in the world — more than the United States, Germany, Japan, South Korea and Britain combined. The U.S. has become so reliant on China that it would have trouble celebrating its own national holiday without it. The vast majority of fireworks are imported from China.” The NYT (Gift Article) with a look at what is, and isn’t, made in China: Your Home Without China.
