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145% tariff almost completely interrupts Sino-US trade! Order cancellation and abandonment of goods become the norm | Maritime export logistics
Apr 14,2025
The Trump administration's tariffs of up to 145 percent on Chinese imports are causing "irreversible" damage to the U.S. economy and businesses. Executives at supply chain giants have warned that cancellations and abandoned goods have become the norm, with many industries facing severe shocks.
Supply chain giant warns that cancellations and abandoned goods are the norm
Orders in furniture, toys, clothing and other industries have plummeted: Alan Murphy, founder of SeaIntelligence, noted that Chinese furniture manufacturers have stopped taking orders from U.S. importers altogether, as have the toys, apparel, footwear and sports equipment industries.
Orders in Southeast Asia recovered, but Chinese orders continued to be cancelled: Brian Bourke, chief commercial officer at SEKO Logistics, said orders in Eastern Asia had recovered after a 90-day tariff exemption period, but container orders from China continued to get cancelled.
Almost all China-related business is stalled: Alan Baer, chief executive of OLUSA, admits that almost all China-related business is suspended.
Small businesses face an existential crisis.
Policy is volatile, and the cost of tariffs is unpredictable: Stephen Lamar, CEO of the American Apparel and Footwear Association, says changing policies and high tariffs are disrupting the supply chain, causing order cancellations and product shortages that are risks that small businesses cannot afford.
The toy industry is under pressure to raise prices: Isaac Larian, chief executive of MGA, the largest toy company in California, says its 46-year business is at stake because of the tariffs.
Logistics giant warns of rising market uncertainty
Maersk warns of restructuring of North American route services: Maersk says its North American route service will face a "massive restructuring," with severe congestion and a surge in freight rates in the coming months, due to a sharp drop in orders and the impending port fee measures for "ships built in China."
Supply-chain uncertainties: Alan Murphy of Sea Intelligence pointed out that the Trump administration's ultimate goal is unclear, companies cannot invest massively in America, and daily changes in customs policies will only create more uncertainties.
Highly profitable products are difficult to transfer production.
The dilemma behind tech product exemptions: Although some tech products such as mobile phones, While computers, for example, are exempted from tariffs, high-margin, high-tech products such as electronics, machinery, medical equipment and pharmaceuticals are difficult to easily transfer production, because it takes time and a lot of money to build high-tech manufacturing plants.
Efforts to shift production to Southeast Asia: Before tariff exemptions were granted for technology products, manufacturers of those products had been analyzing which parts could be sourced elsewhere, while looking primarily at reducing U.S. inventories in the short term.
Problems in handling abandoned goods
Disposal of abandoned goods is unclear: There is currently no clear method of disposal for abandoned shipments by sea and air, with different port and contract provisions. Often, goods that remain at the terminal for more than 30 days are considered abandoned and sold to cover the cost of the stay.
Trump's tariff policies have not only disrupted the supply chain, but have also had a profound impact on the U.S. economy and consumers. Enterprises need to pay close attention to policy developments and adjust their strategies flexibly to cope with the changing market environment.
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