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Tariff Shockwaves Disrupt Trade and Supply Chains

Tariff Shockwaves Disrupt Trade and Supply Chains

Are trade wars making things better for US workers—or just costlier for everyone else? Trump’s sweeping new tariffs—and the abrupt elimination of the “de minimis” exemption—have triggered mayhem in global shipping and sharply higher costs for US importers and consumers. What used to be a $1000 imported item from Switzerland now incurs a $300 tariff, and many global shippers are simply halting shipments to the US until new systems are in place.

  • US customs now screens 4 million extra parcels daily, straining logistics and raising costs from basic goods to electronics and hi-fi.
  • Countries with tariffs above 25% face an extra $200 per parcel fee—sometimes more than the item’s value.
  • US companies also face retaliatory tariffs and global sales headwinds.

Major supply chain disruptions—both from tariffs and a 20% drop in US-bound container bookings—mean costs are up, shipments are down, and businesses are scrambling to adapt. Even US factories, meant to benefit, struggle to source affordable parts. Are consumers footing the bill to "protect" domestic jobs? The near-term answer: Yes, with the hardest hit likely those with the fewest cushions.

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