Tariff Uncertainty Forces US Importers to Rethink Sourcing, Halt Shipments

US importers are grappling with unprecedented uncertainty as shifting tariff deadlines under the
Trump administration disrupt sourcing plans, raise costs, and in some cases force companies to
halt shipments altogether.

Logistics managers, once focused mainly on freight rates and transit times, are now having to
factor unpredictable US trade policy into decisions about where to source goods. The volatility is
hitting smaller cargo owners and shippers of low-value goods hardest, with some abandoning
sourcing locations entirely as higher tariffs make imports uneconomical.

“US tariff policy now swings more often and abruptly than ocean spot rates,” said Alan Baer,
president of freight forwarder OL USA in a Journal of Commerce report. He noted that some
clients have asked to pull containers from origin docks after tariffs rendered imports
unprofitable. Others have paused orders or shifted sourcing to countries less affected by the
new duties.

At the end of July, a 25% tariff on Indian goods and a 15% tariff on imports from the European
Union were announced, with an Aug. 1 deadline looming for additional tariff hikes on other trade
partners. While some deadlines have already been extended — including those affecting China
— uncertainty over whether further extensions will be granted has left importers hesitant to
commit.

One US importer of women’s undergarments, previously shipping 100 containers monthly from
China, said 30% tariffs made sales to Walmart infeasible. The company has shifted sourcing to
Ethiopia and Ghana. “It’s a shell game for a lot of companies at the moment,” Baer said.
Larger retailers with diversified supplier networks have more room to adjust and can push
suppliers to absorb part of the tariff costs, sparing US consumers — at least temporarily.

The uncertainty has also clouded carriers’ demand forecasts, with some shipping lines returning
excess capacity to the trans-Pacific market despite a rebound in China bookings earlier this
year. Economists warn the real impact of tariffs on the US economy may emerge later in 2025,
with consumer prices already climbing to 2.7% in June from 2.4% in May, the highest since
February.