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Marketplace Morning Report

Tariffs may be lower, but they're still disrupting supply chains

Marketplace Morning Report

American Public Media

News, Business

4.5808 Ratings

🗓️ 21 May 2025

⏱️ 7 minutes

🧾️ Download transcript

Summary

The Port of Los Angeles says 20% of container shipments this month were canceled in the wake of President Donald Trump's tariffs. Even though those tariffs were temporarily lowered, June is also looking to be a light month for shipping into that port. We'll hear what could be ahead, as well as how U.S. companies are responding to all the tariff back-and-forth. Also: What will the GOP's tax bill mean for taxpayers' bottom line?

Transcript

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0:00.0

Tariffs may be less high, but they're still disrupting supply chains.

0:06.8

For a marketplace, I'm Sabri Beneshore, in for David Brancaccio.

0:09.8

The port of Los Angeles says 20% of container shipments this month were canceled in the wake of President Trump's tariffs.

0:15.8

Even though those tariffs were temporary lowered, June is also looking to be a light month for shipping into that port.

0:21.4

But after the low, there may be a surge.

0:23.9

Judah Levine is head of research at logistics company, Freitos.

0:27.1

The pause and ordering from China to the U.S. that we saw since those higher tariffs

0:32.2

were introduced in April is probably going to reverse right now.

0:35.4

We're going to see quite a strong rebound in demand for, you know,

0:38.7

importers that had really paused imports to a large extent over the last month.

0:43.3

Levine says this should help limit shortages of some goods,

0:46.7

but it's all been very confusing and disruptive for a lot of U.S. businesses.

0:50.8

Marketplaces Mitchell Hartman has more on that.

0:53.5

The global credit insurer Alianz trade recently surveyed 4,500 exporting firms in the U.S.,

1:00.1

Europe, and Asia. It found more than six in ten U.S. firms planned to reroute supply chains

1:06.3

from China to avoid tariffs, shifting primarily to suppliers in Western Europe and Latin America.

1:12.5

More than half plan to increase prices to offset tariff costs.

1:17.3

Senior economist Maxime Darmé says there may be some reshoring to the U.S.

1:22.7

In high-value-added sectors like automaking, semiconductors, and pharmaceuticals.

1:27.8

But in low-value-added sectors...

1:30.2

Toy-making, textiles, there's no way they're going to resort to the U.S., because the labor cost is too high.

1:35.7

China, meanwhile, is looking for new markets outside the U.S. to sell more exports,

...

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