US firms increase imports ahead of Trump tariffs | Donald Trump news

U.S. imports from China finished the year strong after some companies ordered shipments of clothing, toys, furniture and electronics ahead of President-elect Donald Trump’s plan to impose new tariffs that could reignite a trade war between the world’s economic superpowers.

Trump, who has threatened to impose customs duties of 10 to 60 percent on goods from China, will take office on January 20. In his first term, Trump has mainly targeted Chinese parts and components. Economists and trade experts predict that its next wave of tariffs could be applied to finished goods.

“There has been a surge in final goods exports from China to the US as importers aim to pre-empt possible tariffs on consumer goods,” said Frederick Neumann, chief Asia economist at HSBC in Hong Kong.

On Monday, Chinese trade officials said December exports reached record levels.

Lv Daliang, a spokesman for China’s customs administration, told a news conference in Beijing that the large increase was partly a reflection of concerns about rising trade protectionism.

US seaports handled the equivalent of 451,000 40-foot containers of goods from China in December, up 14.5 percent year-on-year, according to trade data provider Descartes Systems Group.

That capped a 15 percent increase in U.S. imports from China of bedding, plastic toys, cars and other products from 2023, according to Descartes.

Helen of Troy Ltd., seller of OXO kitchen appliances, Hydro Flask water bottles and Vicks over-the-counter medications, contributed to this increase. It is developing strategic inventories aimed at reducing exposure to tariffs, executives said on an earnings call last week.

“The inauguration is literally just a few days away. I think once President-elect Trump takes office, we’ll have more clarity,” Troy CEO Noel Geoffroy said of the new U.S. tariff policies.

Instrument and electrical and plumbing supply distributor MSC Industrial Direct buys about 10 percent of its inventory from China. Executives told investors last week that they are stockpiling their most popular products, which could be at risk from the new tariffs, as they prepare promotional campaigns for U.S.-made goods.

The true impact of the risk of Trump tariffs on overall import revenues is difficult to understand because companies closely guard trade data.

Continuous demand

Further complicating the analysis are persistent US buyers driving demand. Some importers also brought security measures to guard against Houthi attacks on shipping near the trade shortcut near the Suez Canal and labor disputes at seaports on the US East Coast and Gulf of Mexico.

Meanwhile, Trump has threatened to impose tariffs on goods from many other countries, including North American neighbors Mexico and Canada.

Walmart, the biggest user of container shipping, is among the retailers that freight data analysts say have increased imports in recent months. Walmart did not comment on this assessment.

According to S&P Global Market Intelligence, several categories of US imports from all geographic sources posted significant gains during the fourth quarter.

Textiles and clothing increased by 20.7 percent; leisure products, especially toys, increased by 15.4 percent; household items increased by 13.4 percent; and home appliances and consumer electronics gained 9.6 percent and 7.9 percent, respectively, according to S&P.

Consumer staples categories such as household and personal care, as well as food and beverages, rose 14.2 percent and 12.5 percent, S&P said.

Michael O’Shaughnessy, CEO of Element Electronics Corp, said there was a year-end rush to get goods into the US.

Element imports components for its flat-screen TV assembly plant in Winnsboro, South Carolina, mainly from China – America’s last large-scale TV manufacturing plant. It also imports off-the-shelf TVs. The company built buffer stocks when dock workers threatened to close the East Coast ports it used.

Still, O’Shaughnessy said there’s a limit to how much he’s willing or able to bring in.

“There’s just no place to put everything,” he said. “Also, there are restrictions on working capital. “It costs you money to sit there every day.”