Race to Beat Tariffs Pushing Imports at Retail Ports to Record Highs, Says NRF
Imports at the major U.S. retail container ports set record highs in June and July and appear poised to set a third in August, said the National Retail Federation Thursday. It’s all the result of retail sales rising and retailers…
Sign up for a free preview to unlock the rest of this article
Export Compliance Daily combines U.S. export control news, foreign border import regulation and policy developments into a single daily information service that reliably informs its trade professional readers about important current issues affecting their operations.
“rushing to bring merchandise into the country” ahead of 25 percent Trade Act Section 301 tariffs on Chinese imports, said NRF. After U.S. Trade Representative Robert Lighthizer put a first tranche of 25 percent tariffs into effect July 6 on $34 billion worth of Chinese goods (see 1806150030), his office finalized a second to take effect Aug. 23 on $16 billion worth (see 1808080028) and last week put out for comment a proposal to hike the duty rate to 25 percent from 10 percent on a third tranche of goods worth about $200 billion (see 1808010018). “Tariffs on most consumer products have yet to take effect but retailers appear to be getting prepared before that can happen,” said Jonathan Gold, NRF vice president-supply chain and customs policy. “We’re seeing new record levels every month this summer. Much of that is to meet consumer demand as tax reform and a thriving economy drive retail sales, but part of it seems to be concern over what’s to come. The good news for consumers is that avoiding tariffs holds off price increases that will inevitably come if the reckless and misguided trade war is allowed to continue.” U.S. ports handled 1.85 million 20-foot-long cargo containers or their equivalents in June, a 7.8 percent increase from the same month a year earlier, said NRF. It estimates ports handled 1.88 million containers in July, a 4.4 percent increase year-over-year, and forecasts August container imports will be up 4.4 percent to 1.91 million, it said. “The volatility and non-fact-based decisions coming from Washington have created uncertainty" in the retail sector, said Hackett Associates, the contractor that compiled the port-tracking statistics for NRF.