Surging imports, inclement weather weigh down PH shipping | ABS-CBN

HEADLINES:
|

ADVERTISEMENT

HEADLINES:
|
dpo-dps-seal
Welcome, Kapamilya! We use cookies to improve your browsing experience. Continuing to use this site means you agree to our use of cookies. Tell me more!

Surging imports, inclement weather weigh down PH shipping

Surging imports, inclement weather weigh down PH shipping

ABS-CBN News

Clipboard

iWantTFC

Watch more on iWantTFC.com. Watch hundreds of Pinoy shows, movies, live sports and news.

Watch more on iWantTFC.com. Watch hundreds of Pinoy shows, movies, live sports and news.

Aside from a weak peso, the local shipping industry is also weighed down by port congestion and the threat of inclement weather. As Warren de Guzman tells us, the government's anti-inflation plan to import more agricultural items may also spell some trouble in the sector. - Business Nightly, ANC, September 13, 2018

ADVERTISEMENT

'Panic and paralysis': US firms fret despite China tariff reprieve

'Panic and paralysis': US firms fret despite China tariff reprieve

Agence France-Presse,

Beiyi Seow

 | 

Updated May 14, 2025 01:56 PM PHT

Clipboard

WASHINGTON -- President Donald Trump's rollercoaster tariff row with Beijing has wreaked havoc on US companies that rely on Chinese manufacturing, with a temporary de-escalation only expected to partially calm the storm, analysts and business owners say.

"The only option is to try to keep your head above water and be tossed by the waves, or to go out of business," said Anna Barker, whose Mississippi-based firm Glo sells luminous toys designed in the United States and made in China.

She told AFP that the 90-day reprieve beginning Wednesday is just a mere "blip on the radar." Placing orders, manufacturing products and shipping them to the United States takes much longer.

Trump's escalating trade war since his return to office saw US duties on Chinese goods -- including toys -- reach a whopping 145 percent, while Beijing's countermeasures hit 125 percent.

ADVERTISEMENT

The world's two biggest economies however agreed at talks last weekend in Switzerland to temporarily lower the levies, bringing US tariffs down to 30 percent and China's corresponding duties to 10 percent.

While cautiously optimistic about the ongoing negotiations, Barker warned the 30 percent rate remains "massive for a small company."

Trump has argued that companies will enjoy zero tariffs if they manufacture in the United States, overlooking costs for any machinery or raw materials that would still need to be imported.

"We're an American company," Barker said. "Our biggest priority, if it was just up to us, will always be the US market. But it simply can't be right now."

To stay afloat, she is looking abroad for growth.

ADVERTISEMENT



'Clogged pipeline'

The pause "may temporarily help unstick" an effective trade embargo since April 9, when steep levies forced many firms to halt imports, said Steve Lamar, president of the American Apparel & Footwear Association (AAFA).

He warned, however, that the residual 30 percent tariff, stacking on duties from past administrations, will "make for an expensive back to school and holiday season."

"The tariffs are still so large that you can't help but pass them along," said KPMG chief economist Diane Swonk.

This means producers, retailers and consumers could all bear some burden, with small businesses hit particularly hard due to their narrower margins.

Freight rates could also surge due to shipping disruptions from the tariffs.

ADVERTISEMENT

"There's a lot of inventory piling up in factories in China that now need to hit the water," said Josh Staph, chief executive of Ohio-based Duncan Toys Company.

Barker said her company was hurrying to join an "already very clogged pipeline of people racing to shipping ports."

ADVERTISEMENT

ADVERTISEMENT

ABS-CBN is the leading media and entertainment company in the Philippines, offering quality content across TV, radio, digital, and film. Committed to public service and promoting Filipino values, ABS-CBN continues to inspire and connect audiences worldwide.

It looks like you’re using an ad blocker

Our website is made possible by displaying online advertisements to our visitors. Please consider supporting us by disabling your ad blocker on our website.

Our website is made possible by displaying online advertisements to our visitors. Please consider supporting us by disabling your ad blocker on our website.