Trump's tariffs for China mean “irreversible” damage to many companies

IPhone and other Apple technological equipment, from systems to computers, was obtained Resonance in a Chinese tariff From President Trump on Saturday, but for most American owners of the economy and small companies, damage will soon be irreversible 145% of tariffs Imposing Chinese imports.

Canceled goods and Abandoned freight From China, they quickly become the norm in the trade war between the USA and China, according to the supply chain management, because companies in the US industries stopped at the export of containers, and the tariffs hit like a lot of bricks.

“Furniture manufacturers in China stopped in orders from American importers and we hear the same on toys, clothing, footwear and sports equipment,” said Alan Murphy, founder and general director of Sea-Intelligence.

“We had the same in Southeast Asia, but after 90 -day relief, these reservations started again,” said Brian Bourke, commercial director of Seko Logistics, while the canceled reservations of containers from China are ongoing.

“Almost everything is suspended because it concerns Chinese business,” said Alan Baer, ​​Ol USA CEO.

“145% Trump tariff for Chinese imports would stop the majority of trade between the USA and China, economist Erica York, vice president of the federal tax policy at the Federal Tax Policy Foundation, informed on Thursday about the” stock exchange “CNBC.

“There may still be some things without any substitutes that companies simply have to raise the bill, but mostly cut it off,” said York.

Because over the past week it has become clear that China will remain the main goal of the Trump-Turp Tariff policy-as a 90-day relief was granted to all other countries that expect that they will be affected by new tariffs-shocks that have come, it is that the goods of the lower margin cannot be produced in China. The new release of technology can be partially explained how the supply chain works, but also strengthens where the greatest pain is felt.

“Higher and more technical goods, such as electronics, machines, medical equipment and pharmaceuticals, cannot easily transfer acquisitions, because the establishment of highly technical production requires time and significant capital,” said Murphy.

Before turning off the technological tariffs, it says that the manufacturers of these goods analyzed what components can be obtained elsewhere, and above all they try to pull out inventory in a short period. Joint efforts were made to transfer production to Southeast Asia, mainly Vietnam or India. It was also considered to reduce prices to Europe to maintain production or completely closure of production lines.

“Small companies can not keep the risk or load”

Stephen Lamar, general director of American Apparel & Footwear Association, said that sudden changes in politics and high tariffs disturb the supply chains at the level that are not visible since the pandemic time.

“At the jacket, a high tariff level for US imports from China, many companies have no other choice but to cancel orders,” said Lamar. “Continuous return means that the new costs of the tariff are not accurately presented or predictable until the goods reach the port, and high rates generate bills that cannot be paid. This is not a risk or burden that a small business can maintain.”

Lamar said without alternative acquisition on the horizon for many of these companies, especially small companies, this sudden lack of orders will immediately translate into lost sales and common products of products. “The transfer of a trade war against American imports from China is needed, it is needed before the damage is irreversible,” said Lamar.

The integrated Giant of Logistics Maersk warned that on the container side of its activities, a decrease in reservation in combination with the possibility of building ship fees on “Chinese” ships also next week, would cause “huge restructuring of all services to North America.”

“It will take months to organize the mess, and the jumps and freight rates in the coming months,” Maersk wrote to customers.

Murphy said that in all Chinese producers with whom his company talked, none of them currently wants to transfer production to the USA, with one of the reasons is a lack of understanding of the ultimate goals of administration.

“The biggest problem here is the total uncertainty of the actual game of Trump's administration,” he said. “Nobody will consider huge investments in US production, if the tariffs are only a trick to negotiate better commercial transactions. If the administration actually realizes the purpose of American reindustrialization, then the long-term tariff plan must be clear, and less talk about” 4D chess “and a'rt contract,” he said. uncertainty, “he added.

Maintaining freight processing is one of the ways to alleviate the impact of tariffs. Logistics suppliers can offer related storage, which allows freight to come to the USA without a tariff load for a specified time. Other methods are foreign trade zones and delayed transit, as well as the re -dissemination of already sent goods sitting in warehouses.

“The current circumstances are unprecedented,” said Karsten Kildahl, commercial director of AP Moller-Maersk.

Abandoned freight

The fate of the abandoned ocean and aviation freight – a load that is not demanded or paid by a shipping company or a forwarder responsible for customs paying on behalf of their client – is not clear, and the rules change the port to the port, and a contractual contract.

Port officials say CNBC that they are usually not notified of abandoned loads. The New York terminal conference agreement states that the load remained at the terminal exceeding 30 days will be considered abandoned and sold to collect fees for separation due to NYTC – fees evaluated for leaving the freight on the terminals for excessive time. It was also found that the final responsibility for costs usually depends on specific shipping contracts. “If BL (Lill of Lave) has not been transferred to the sender, this is the responsibility of the forwarder. Seat can decide to recover the load (i.e. export the load again), destroy or transfer it.”

Bathers usually prepare a “letter of abandonment” for customs purposes so that the load is sold or sold at auction, and revenues from sales/auction cover all expenses, such as the use of a container and chassis, and with a balance for the terminal.

The terminal can transfer the abandoned load to the combined warehouse or leave it on the terminal and sell it from there. There is a purchase market for abandoned freight. Companies such as JS Cargo & Freight Disposal, Auction FR8 or US goods buy an abandoned load, and then sell it in discount stores, sales outlets, liquidators, online sellers, such as Amazon, drug chains, diversity shops, redemption centers, liquidators and buyers.

Maersk says CNBC many forwarders implements “wait and see”-the use and in the latest ambulance for customers wrote that until there is a more pronounced picture, customers will be careful in terms of their levels of inventory and will continue to study ways of building additional flexibility in their supply chains. He said that in the global network of warehouses, distribution centers, port terminals, ships and freight aircraft “additional flexibility” is now many clients.