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**Empty Shelves Coming? China Shipping Collapse Threatens US Retail**
The ongoing trade war between the United States and China has taken a devastating turn, with a 64% drop in container shipments from China to the US reported. The severe impact of this disruption on global supply chains is already being felt by major retailers such as Walmart, Home Depot, and Target.
In an unprecedented move, executives from these companies met with President Trump to express their deep concerns about the impending shortage of essential goods on store shelves. The CEOs warned that without a swift policy reversal, they expect “higher prices and empty store shelves within weeks.”
The ripple effects of this crisis extend far beyond shipping and travel, reshaping consumer behavior and business strategies across the American economy. As Treasury Secretary Scott Bessent put it, “We’re effectively in a trade embargo between our countries, and that’s unsustainable.”
Airline companies have also been hit hard, with major carriers such as American Airlines, Southwest Airlines, and Delta Air Lines canceling their 2025 financial outlooks due to the uncertainty caused by these tariffs. This unprecedented move highlights the severity of the situation.
In a surprising twist, businesses that rely heavily on immigrant labor are reporting worker shortages, while car dealers have seen an unexpected surge in demand as consumers rush to buy before prices increase further.
The Dallas Federal Reserve summarized the dire situation: “Numerous contacts voiced concern that heightened uncertainty stemming from on-again, off-again tariffs was making it increasingly challenging to plan.”
It’s essential to note that even if Trump were to soften his tariff stance, the damage may have already occurred. The economic recovery process is expected to be longer and more drawn-out than usual.
As a result of these events, it seems likely that consumers can expect higher prices and reduced product availability in the coming weeks.
Source: https://coincentral.com/empty-shelves-coming-china-shipping-collapse-threatens-us-retail/
