Though, of course, that will be disastrous for everyone soon enough.
Trump’s tariffs on goods from China have disrupted trans-Pacific supply chains. U.S. officials are alarmed by companies’ dwindling inventories of critical raw-earth metals necessary for a range of economic activity; Beijing restricted the metals this month. In the three weeks since the tariffs took effect, ocean-container bookings from China to the U.S. are down by more than 60 percent, said Ryan Petersen, founder and CEO of Flexport, a global shipping company. Cargo carriers that bring Asian goods to the Port of Los Angeles, the nation’s main Pacific gateway, have canceled 20 port calls next month, more than three times as many as last month, according to port data.
The consequence will be “empty shelves in U.S. stores in a few weeks and covid-like shortages for consumers and for firms using Chinese products as intermediate goods,” said Torsten Slok, chief economist for Apollo Global Management. Fewer goods reaching American shores will mean higher prices on the goods that are in stores — as well as less work for dockworkers and truck drivers. “Significant” layoffs in trucking, logistics and retail are likely as soon as May, Slok said.