Impact of Trump Tariffs on the Consumer and the Global Supply Chain
Supply chain expert Jay Dhokia, founder of Pro3PL, comments on the U.S. government’s plans to impose port fees on Chinese ships.
Read also: U.S. Tariffs Could Break Up Shipping Alliances and Disrupt Global Trade
“While the new port fees on Chinese ships docking in the United States are less extreme than first suggested by the American government, they are the latest blow disrupting the global supply chain as part of America’s shake-up. Even though the fees being imposed are significantly less extreme than what was first suggested, they are yet another factor disrupting the global supply chain alongside the raft of other tariffs and changes in U.S. trade culture. Since January 2025, Trump has imposed taxes of up to 145% on imports from China. Supply chain operations and consumers will have to take these measures incredibly seriously as they adjust to this new, turbulent global economic environment.
People will feel these changes in their wallets
“For the average American consumer, additional port fees and tariffs will noticeably raise product prices. Shipping vessels will charge more to deliver cargo to the U.S., creating a ripple effect where businesses pass increased shipping costs onto the consumer to avoid absorbing the new cost. There will also likely be significant delays as fewer boats dock at U.S. ports to avoid fees and tariffs, diverting them to other global ports, guaranteeing congestion and processing issues. With fees charged on international cargo ships set to increase year-on-year, and it being a colossal undertaking to replace Chinese vessels that dominate the existing maritime supply chain, this proposed policy change will be felt for a long time yet.
There will be a knock-on effect across Europe and the rest of the world
“Even before the announcement on port fees, we’ve observed a trend of cargo from China redirected to Europe and away from its original U.S. destination due to tariffs. As shippers look to find new markets, cargo will be routed away from the United States and into places such as the United Kingdom, the Netherlands and Germany. Uncertainty and the growing costs of trading with America risk creating a backlog at European ports, which have to accommodate an influx of maritime traffic. This is only the beginning, however, as uncertainty and disruption in the United States may spook businesses. Operations will likely start looking to permanently alter their supply chains as a result.
Everybody loses in a trade war
“Continuing trade conflict between America and China amplifies supply chain challenges on a global scale. Supply chain and logistics operations need to show a sense of resilience and adaptability to disruptions caused by these policies. My advice is for businesses and supply chain managers to keep a watchful eye on developments and discussions, with change coming thick and fast.”
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