Steep tariffs on Chinese goods are triggering a major supply chain shock that could soon hit the U.S. economy.
Cargo shipments from China have plummeted by as much as 60%, and by mid-May, retailers like Walmart and Target warn that Americans could start seeing empty shelves and higher prices. With companies rushing to find alternative suppliers, shipping disruptions/delays and inventory shortages are expected to mount– fueling fears about a lack of inventory reminiscent of the early pandemic. Economists caution that even if tariffs are rolled back soon, backlogs and reduced freight capacity could cause logistical bottlenecks that persist well into the holiday season.