Trade analysts are warning that
new tariffs threatened by former President
Donald Trump, which he doubled down on during
Tuesday night’s presidential debate, will create inflationary pressures in the supply chain and ripple through the broader economy.
Trump defended his trade policy during the debate, dismissing concerns that blanket tariffs of up to 20% on all imports and additional tariffs of 60% to 100% on goods from China will lead to higher consumer prices.
Judah Levine, head of research for Freightos, says if history is any guide, additional tariffs will fuel ocean freight rates. During the first Trump administration, as importers rushed to move goods into the country before tariffs went into effect, ocean container rates from Asia to the U.S. West Coast started rising sharply in July 2018, and doubled by mid-November, according to Freightos data.