Retailers Still Importing Goods to Beat Tariffs but at Slower Pace Than 2018, Says NRF
Though President Donald Trump delayed imposing List 4 Section 301 tariffs to restart negotiations with the Chinese toward a comprehensive trade deal (see 1907010015), retailers continue stocking up on inventory as a hedge against the duties taking effect on short…
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notice, said the National Retail Federation Wednesday. Imports at major U.S. retail container ports will remain at high levels this summer, “but are expected to grow only modestly compared with last year’s rush to bring merchandise into the country ahead of scheduled tariff increases,” said NRF. “Retailers still want to protect their customers against potential price increases that would come with any additional tariffs, but with the latest proposed tariffs on hold for now and warehouses bulging, there’s only so much they can do,” it said. “We will still see some near-record numbers this summer, but right now no one knows whether there will be additional tariffs or not.” U.S. ports handled 1.85 million 20-foot-long cargo containers or their equivalents in May, up 6 percent from April and a 1.4 percent increase from May 2018, said NRF. It’s estimated that ports handled 1.87 million containers in June, an increase of only 0.8 percent year over year. The July forecast is for 1.93 million containers to be handled, which would be 1.3 percent higher than the July 2018 volume, it said: “The small year-over-year increases expected in the next few months compare with double-digit growth in multiple months last year as retailers rushed to import Chinese merchandise ahead of expected tariff increases.”