US imports from China experienced a significant year-end surge as companies rushed to stockpile goods ahead of President-elect Donald Trump’s anticipated tariff increases, potentially reigniting a trade war between the world’s two largest economies, Reuters reports.
The surge, fueled by concerns over escalating trade protectionism, saw a marked increase in shipments of apparel, toys, furniture, and electronics.
President Trump, who takes office on January 20, has threatened to impose tariffs ranging from 10% to 60% on Chinese goods. While his previous tariffs focused primarily on parts and components, economists and trade experts now predict the next wave will target finished goods, prompting companies to act proactively.
Chinese trade officials reported a record high in December exports, a phenomenon partially attributed to the rush of U.S. companies to secure goods before any tariff hikes take effect. Data from Descartes Systems Group shows US seaports handled the equivalent of 451,000 40-foot containers of goods from China in December, a 14.5% increase year-over-year. This contributed to an overall 15% increase in US imports from China for the entire year of 2023, covering a range of products including bedding, plastic toys, and machinery.
Several companies have confirmed their participation in this stockpiling strategy. Helen of Troy Ltd, known for brands like OXO, Hydro Flask, and Vicks, has explicitly stated it has built strategic inventories to mitigate potential tariff impacts. Similarly, MSC Industrial Direct, a tool and supply distributor sourcing roughly 10% of its inventory from China, is stocking up on popular items while also developing promotional campaigns for US-made goods.
Pinpointing the precise impact of the anticipated tariffs is difficult due to private company data. Strong consumer demand in the U.S. and supply chain disruptions – including Houthi attacks in the Red Sea and labor disputes at US ports – have also contributed to the overall import increase.
While China has been the primary focus, President Trump has also threatened tariffs on goods from other countries, including North American trade partners Mexico and Canada, further complicating global trade dynamics.
Retail giant Walmart, a major user of container shipping, is among the retailers cargo data analysts have identified as significantly ramping up imports recently. However, the company declined to comment on these assessments.
Data from S&P Global Market Intelligence indicates that numerous import categories have witnessed significant growth in the fourth quarter across all geographic sources. Textiles and apparel saw a 20.7% jump, leisure products (primarily toys) climbed by 15.4%, home furnishings increased by 13.4%, while household appliances and consumer electronics grew by 9.6% and 7.9%, respectively. Consumer staples such as household/personal care products and food/beverages also saw notable gains of 14.2% and 12.5% respectively.
Michael O’Shaughnessy, CEO of Element Electronics Corp, noted a surge in goods being brought into the US at the end of the year. Element, which operates the last large-scale television assembly plant in the US, imports both components and finished TVs.
