During the September 11, 2024, U.S. Presidential Debate, Donald Trump defended his proposal for import tariffs of up to 20% on all imports, with additional tariffs of 60% to 100% on Chinese goods. Trump argued these tariffs wouldn't lead to price increases for consumers. However, data from Xeneta, an ocean freight rate intelligence platform, suggests otherwise.
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Xeneta's Chief Analyst, Peter Sand, pointed out that Trump's 2018 tariffs on Chinese imports caused ocean shipping rates to spike by over 70%. For example, on the China to U.S. West Coast route, the average spot freight rate increased from $1,503 per FEU (40-foot container) in January 2018 to $2,604 in November 2018. Sand emphasized that raising trade barriers typically leads to increased shipping costs, which are eventually passed on to consumers through higher prices or reduced product availability.
The proposed tariffs come at a time when global ocean supply chains are already strained due to the conflict in the Red Sea, which has caused a sharp increase in spot rates. From December 2023 to July 2024, spot rates from the Far East to the U.S. East Coast surged by 303%, while those to the U.S. West Coast jumped 389%.
Source: container-news.com