Coping with turbulence: The impact of Trump 2.0's tariffs and cargo shipping increases on U.S. ddp shipping in 2025

As 2025 approaches, the global trade landscape will change significantly, with factors including expected tariff increases by the Trump administration, possible strikes at U.S. East Coast ports, and ongoing alliance realignment by shipping companies. Taken together, these factors point to a turbulent start to the New Year, with profound implications for businesses and consumers alike.

One of the most pressing concerns is the Trump administration's proposed tariff hikes, which are expected to exacerbate existing trade tensions and complicate supply chains. Tariffs could lead to higher costs for imported goods, which could eventually be passed on to consumers. This is particularly worrying given the recent surge in freight rates as indicated by the Shanghai Container Freight Index (SCFI). Spot freight from Asia to Europe rose 255 per cent year on year, while freight to the US West coast rose 147 per cent year on year. A sharp rise in transportation costs could further burden businesses already facing inflationary pressures.

The possibility of an attack at a U.S. East Coast port also adds another layer of uncertainty. Labor disputes can disrupt the flow of goods, causing delays in imports and exports and increasing costs. As companies grapple with these challenges, many are reevaluating their logistics strategies and looking for alternative routes or suppliers to reduce risk.

In addition to these immediate concerns, the ongoing alliance restructuring among shipping lines could reshape the competitive landscape. As operators adjust their networks and capacity, businesses must remain agile to adapt to changing market conditions.

Increased tariffs, higher freight rates, and potential labor disruptions point to a challenging environment for U.S. trade going into 2025. Stakeholders must remain informed and proactive to effectively navigate this volatile situation.