There are emerging signs that the trade war begins to have an impact on international trade, and consumers in Canada, and in particular in the United States, could soon find empty shelves if there is no relief form soon.
The new data of the container shipping company is showed them Chinese freight shipments in the United States and The United States Export to China is starting to decrease while businesses seek to avoid new prices imposed by the United States.
US President’s pricing policy Donald Trump with China Implies a right of 145% on all imports, and in response, China imposed a rate of 125% on all products shipped to the country from the United States.
“So, if you have $ 100 million in Chinese products in a container at the Los Angeles port, you have to pay $ 145 million to release them. These are monstrous sums,” Santo Ligotti explains to the Council of Canada retail, adding that these prices lead to less imports, “American consumers will soon see shortages or prices.”
Although these specific trade tensions may seem isolated between the United States and China, there is a very real possibility that it will send a training effect to other nations; Even though Canadian consumers could pay the price.
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“This is important when you have the two major economic gorillas that start to fight,” Matt Poirier, vice-president of federal government relations at Retail Council of Canada, said. “Even if we are not part of this fight, we are in the ring with them.”
Canadian companies with American supplier goods can cope with higher prices if these partners are affected by prices, including if individual parts or components come from China.
“Given the interconnected nature of our supply chains, there is a very good chance that, as soon as possible, the costs for Canadian and American consumers will increase,” explains Pascal Chan in the Canadian Chamber of Commerce.
“Many orders placed on Canadian sites go through American distribution centers. Or, in the case of electronic products, there may be components manufactured in China but assembled in the United States. ”
Although consumers, including in Canada and the United States, can see that the situation seems mainly stable at the moment, with apparently well-supplied shelves and store warehouses, there is a reason why the shelves are not yet empty.
Chan says that it is mainly because companies rushed to fill the warehouses before the prices were triggered: “The first quarter of 2025 saw an increase in trade while companies stored goods to minimize the pain promised by the taxation of prices. But the Knock-On effects of turbulent price changes can only be retained for so long.
The uncertainty of the trade war leads many suppliers to prepare for possible shortages of supply chain once these stocks are exhausted.
“I think it will vary, but you are not going to see the generalized shortage of short -term goods. But that could be at some point, ”explains Bruce Rodgers at the Canadian International Freight Forewers Association.
Trade discussions should continue between China and the United StatesAnd companies hope that there will soon be a form of price relief.
Rodgers says that until then, companies are “in a relaxation model at this stage”.
“So the freight arrives, it is unloaded in warehouses and our warehouses are filled, just waiting for this relief of the prices.”
& Copy 2025 Global News, A Division of Corus Entertainment Inc.