Uncertainty on tariffs hurt. Paying them is worse: survey

[LONDON] US importers spent months wondering whether to stockpile to survive US President Donald Trump’s global tariff threats, or sit tight hoping he was bluffing. With widespread duties now having been in place for almost a month, the pain of paying them is replacing the frustration of uncertainty.

That’s among the takeaways from a survey of 336 small to mid-size companies by Freightos, a Barcelona-based cargo booking platform. Almost half the respondents polled Aug 19 to Sep 9 said their costs have climbed by 20 per cent or more, with about the same proportion saying they have reduced shipment volumes because of higher expenses.

The results add to anecdotal evidence that the import taxes are hitting smaller companies harder than bigger competitors.

“Unfortunately, small and medium-sized businesses are bearing the brunt of the trade war,” said Adam Lewis, president of Clearit Customs Brokerage. “Unlike larger corporations, they don’t have the same insulation or sophistication to absorb frequent tariff changes, currency swings, and rising costs.”

Almost 60 per cent of respondents said Washington’s policies have weakened the US’s standing as a trading partner, compared with 6 per cent who said it’s been strengthened. Almost a quarter said that the impact has been mixed depending on the country and industry, with 5 per cent seeing no meaningful change and 7 per cent saying it’s too soon to draw conclusions, according to Freightos.

Asked about the outlook for back-to-school and holiday sales, 52 per cent of cargo owners said that they expected those key seasons for consumer demand to be weaker than usual. By comparison, 35 per cent expected sales around Memorial Day would be softer than normal when asked the same question in late May, according to the Freightos survey.

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“Expectations of new or expanded tariffs and the duties applied under the trade deals of the last few weeks has shippers bracing for possibly more severe challenges to business,” said Judah Levine, head of research at Freightos. “We are witnessing not just temporary disruption, but potentially long-term structural changes to international sourcing and pricing strategies.” BLOOMBERG