Donald Trump’s trade war policies have led to a significant decline in shipments to key US ports, raising concerns about a looming recession in the world’s largest economy. Data from Port Optimizer reveals a sharp drop in vessel arrivals at the Port of Los Angeles, with a 11% decrease compared to the previous year. Container bookings from China to the US have also plummeted by 45%, indicating the adverse impact of the trade tensions.

Economists warn that Trump’s tariff battles will result in a global trade slowdown, higher prices for US consumers, and an increased risk of recession. While there is a potential for a deal with China on tariffs, the uncertainty surrounding trade policies continues to affect businesses negatively. Companies are experiencing declining new orders, reduced investment plans, and lower consumer confidence, signaling potential economic challenges ahead.

US CEOs, including those from Walmart and Target, have expressed concerns about disrupted supply chains and price hikes due to the tariff policies. The widening trade deficit and the decline in Chinese shipments to the US further underscore the escalating repercussions of the trade war. Analysts anticipate a potential recession by summer if the current trends persist, with fears reminiscent of the uncertainties seen during the Covid pandemic. The situation highlights the profound impact of Trump’s trade policies and the need for swift resolution to mitigate economic risks.