I-Team: Tariff pause comes too late to stop price hikes in the U.S.
I-Team: What the tariff truce means for prices
The U.S.-China trade war hit a pause this week just as the increased tariffs would have really hit, but even with a trade truce, that doesn't mean consumers can avoid higher prices. The FOX 5 I-Team's Dana Fowle explains why.
ATLANTA - The U.S.-China trade war is on pause—for now. But even with a temporary truce, consumers may still see higher prices in the coming weeks.
What we know:
When President Trump announced new tariffs in April targeting America’s largest trading partners, international shipping orders dropped by half. Those partially loaded container ships have now arrived, but the damage is done.
Even if the trade dispute ended today, it would take four to six weeks for fully loaded cargo ships to resume arriving. That means fewer items—and less variety—on store shelves throughout the summer, said Kyle Henderson, CEO of Vizion, a company that monitors global shipping.
What they're saying:
"There’s now an air bubble in the pipeline," Henderson explained, referring to the shipping gap between China and the U.S. "That pipeline is usually full of goods, but right now it’s not."
Large corporations can absorb the costs by rushing goods in via air freight, but that’s not an option for most small businesses—air shipping can cost up to 100 times more than sea freight.
"The small companies are going to get hosed," Henderson said. "For them, it’s like their mortgage doubling overnight if they need to restock inventory from China."
Even with the pause in tariffs, businesses must prepare for future uncertainty. Henderson said he recently went tire shopping and was told prices had already doubled—partly due to increased labor costs and in anticipation of further price hikes.
Vizion is seeing similar spikes in prices for apparel and electronics. Regardless of what happens next, Henderson says consumers should plan, shop, and budget now for the worst-case scenario.
What's next:
The White House’s tariff decisions in early April are being felt now. Any change in policy today won’t be reflected for several weeks. Henderson compares it to planning a vacation: "You don’t wait until July to get the best deal—you plan and buy early. That’s what retailers did weeks ago."
In short: Even with a pause in the trade war, rising prices are already in motion.