We wanted to bring your attention to the finite timeline that exists as trade tensions continue between China and the United States without resolution. If the present trade tariffs are not resolved soon, the ripple effects could be swift, significant, and long-lasting for everyone along the supply chain.
According to recent data and analysis:
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Tariffs on Chinese imports are already impacting container volumes, with shipments from China to the U.S. slowing rapidly.
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By mid-to-late May, containerships are expected to stop arriving at U.S. ports altogether, followed by a halt in trucking and rail demand just days later.
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This would lead to widespread supply chain disruptions, layoffs in logistics and retail, and ultimately, a potential consumer-led recession by summer 2025.
This scenario highlights the downstream consequences of escalating tariffs and prolonged trade friction, impacting everything from production schedules and inventory planning to pricing and business confidence.
At GCP, we are taking active steps to manage this uncertainty and minimize disruption where possible. We continue to explore alternative production options and logistics strategies to protect the reliability of our supply chain. That said, if these trade disputes persist unresolved, we anticipate pressure on lead times and pricing industry-wide.
We encourage our customers to review their upcoming material needs and reach out to us to discuss proactive planning. Our goal is to help you navigate this period of uncertainty with as much stability and transparency as possible.
Please note, this is a fluid situation, and both the tariff schedule and policy direction may shift in the coming weeks. We will continue to monitor developments closely and share updates as they become available.
Thank you for your continued trust and partnership.
Sincerely,
The GCP Team
