In a bid to secure inventories for the upcoming holiday season, U.S. retailers are expediting their orders from China. This move comes in light of the potential tariff hikes expected later this year, as per shipping executives.
Retailers are advancing their orders by four to six weeks to gear up for Black Friday and Christmas sales amid the uncertainty that ensued following U.S. President Donald Trump‘s recent visit to China, Reuters reported on Tuesday.
“There is an expectation that tariffs could be raised again, or restored to previous levels, so everyone is rushing to get goods in before that happens,” Tony Meng, a senior sales manager based in China at shipping firm XPD Global told the publication.
Shipping companies said order volumes, which typically peak in July through September, exceeded expectations in May and June, driving a surge in freight rates. The frontloading could sustain the 35% jump in U.S. imports from China recorded in May, though growth may ease later this summer.
Maersk, a top shipping group, reported that container space on the China–U.S. route has been tightening since mid-May due to “stronger customer demand and earlier seasonal bookings.”
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Tariffs And Supply Chain Fears
This rush to secure goods from China comes at a time when the U.S. Trade Representative has proposed a 12.5% tariff on imports from China and other countries following a forced labor investigation, with a final decision expected in the coming months. China has denied the allegations.
In May, China and the U.S. reached a tentative agreement to reduce tariffs and ease non-tariff barriers following recent trade talks and a summit between President Donald Trump and President Xi Jinping. The deal includes mutual tariff reductions on select products and efforts to expand bilateral agricultural trade by improving market access.
Meanwhile, concerns are being raised about the increasing Chinese ownership of U.S. brands and supply chains. Sen. Rick Scott cautioned that this growing Chinese ownership could pose a threat to national security.
He urged for a stronger push towards domestic manufacturing, stating that the “Made in America” label is no longer sufficient. He further added that “Communist China is buying up brands Americans know and trust.”
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