Inventory shortages, rising prices expected as Trump’s China tariffs continue

President Donald Trump’s 145% tariffs on Chinese imports are causing significant supply disruptions and threatening higher prices for U.S. consumers as retailers warn of impending inventory shortages.

What you need to know: U.S. shipments from China have dropped since Trump’s tariffs took effect in early April. The Port of Los Angeles, for one, reported a 10% decrease in shipments last week compared to the same period one year earlier, with Executive Director Eugene Seroka predicting that arrivals will drop by 35% in two weeks. Major retailers such as Home Depot, Walmart and Target have reportedly cautioned Trump in private that his sweeping tariffs could lead to gaps on store shelves if it remains in effect. On Wednesday, the Commerce Department reported that the economy contracted at an annual rate of 0.3% in the first quarter of 2025.

What China is saying: Beijing has been approached by U.S. officials seeking talks over the tariffs, according to state media outlet Yuyuan Tantian. However, Chinese Foreign Ministry spokesperson Guo Jiakun reiterated on Wednesday that “there have been no consultations or negotiations between China and the U.S. on tariffs,” echoing previous positions. Still, sources told Reuters that China has quietly listed U.S. products it will exempt from its retaliatory 125% tariffs, including select pharmaceuticals, microchips and jet engines.

Palpable impact: The tariffs are starting to affect seasonal industries particularly hard, with fireworks companies reportedly canceling shipments for this year’s Fourth of July celebrations and ceasing manufacturing for the U.S.’ 250th anniversary next year. Consumers will likely face higher prices and limited selection for imported goods in the coming months, with retailers warning they may need to implement price increases once “tariff surcharges” are applied to products that manage to reach store shelves.