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US and Chinese trade representatives are set to meet in Geneva this weekend for their first face to face meeting in an attempt to deescalate the trade war. Most goods shipping from China to the United States have a 145% tariff, while most US exports to China are being hit with a 125% tariff. On Friday, President Donald Trump suggested lowering the tariff rate with China to 80%, but said the final terms would be up to Treasury Secretary Scott Bessent.
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For consumers, who are facing higher prices or shortages of certain items, Cordero says a deal can’t come soon enough.
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“If things don’t change quickly, I’m talking about the uncertainty that we’re seeing, then we may be seeing empty products on the shelves. This is now going to be felt by the consumer in the coming 30 days,” said Cordero.
Upwards of 63% of the cargo that flows into the Port of Long Beach is from China — the largest share of any US port. But that number is down from 72% in 2016 as retailers shift away from China over simmering trade tensions.
Even so, China still represents a major source of imports into the United States. Maersk, the second largest shipping line in the world, told CNN the cargo volume between the United States and China has fallen by 30-40% compared to normal.
“If we don’t start to see a de-escalation of the situation with China, if we don’t start to see more of those trade deals, then we could be in a situation where some of these effects get more entrenched and are more adverse,” said Maersk CEO Vincent Clerc.