China Imports Surge Amid 90-Day U.S. Tariff Pause, Retail Shortages Risk Persists

The recent 90-day tariff reduction deal between the U.S. and China has triggered a surge in pent-up cargo shipments and restocking efforts by U.S. businesses, particularly in retail sectors dependent on low-priced Chinese goods. However, despite the tariff rollback from as high as 125% to 30%, many importers continue to face high costs due to the stacking of existing tariffs, which is limiting the full resumption of holiday and seasonal orders. Port officials and supply chain experts warn that while the tariff pause is a positive step, more decisive action is needed to prevent further economic damage and supply shortages, especially ahead of major retail seasons like summer, back-to-school, and holiday shopping. A recent CNBC Supply Chain Survey found that a significant portion of importers have not yet restarted full holiday orders, reflecting ongoing caution in the market. Meanwhile, the volume of trading on U.S. stock exchanges has been unusually high, possibly driven by these tariff developments and related market volatility. Overall, the tariff rollback has sparked optimism but not yet restored normalcy in U.S.-China trade and retail supply chains.