The implementation of President Donald Trump’s tariffs is expected to severely disrupt the supply of foreign-made goods into the U.S., with some companies already halting shipments of key products, sources revealed on Monday.
A baseline 10% tariff was applied to imports from many countries starting Saturday, with higher tariffs imposed on those considered “worst offenders” for imposing high tariffs on U.S. goods. This has led to a wave of caution from companies producing everything from toys to luxury wristwatches, as they hold off on shipping to avoid unpredictable tariff consequences.
Luxury items are among the first to feel the impact. Jaguars, Range Rovers, and Land Rovers, all manufactured in the UK, have been taken off the shipping roster as an additional 10% tariff has been slapped on these vehicles, bringing trade between the U.S. and the UK to a halt.
Jay Foreman, CEO of toy company Basic Fun, which manufactures toys in China, expressed concerns about the tariff hike: “I cannot risk putting any product on the water that might incur [high] tariffs as implemented and threatened by the President,” he told The Post. The company, like many others, is bracing for a halt in shipments, especially as the tariff situation remains unresolved.
Other small nations, such as Lesotho (known for diamond, denim, and suit exports) and St. Pierre and Miquelon (a French archipelago near Canada), will also face a 50% tariff on their products, further widening the scope of impacted goods.
As producers wait to see whether tariff negotiations will bring relief, several sectors are already feeling the strain. High-tech products are among the hardest hit, especially as China retaliates with its own tariffs on American imports. In addition to tariffs, China is restricting the export of rare earth elements crucial for electronics and high-tech items, such as lasers, jet engine coatings, and components for Tesla vehicles. The country has also signaled potential limits on X-ray tube exports, which could impact medical screenings in the U.S.
Swiss luxury watches are also caught in the crossfire. Brands like Rolex, Breitling, and Audemars Piguet are holding off on shipments, uncertain of the impact of potential tariffs that could reach 31%. Erik Boneta, a luxury watch dealer, said, “All the major brands have held shipping. They’re waiting to see what happens.” The uncertainty is affecting both manufacturers and consumers, with no quick resolution in sight.
In the toy sector, products like Tonka Trucks, Care Bears, and K’nex, made by U.S.-based Basic Fun, may soon be in short supply. The company has stopped shipping toys made in China due to tariffs that could soar as high as 104%. “The consumer will just shut down, as will global trade,” Foreman predicted, warning of the far-reaching consequences for both businesses and consumers.
Video game company Nintendo is also feeling the effects. Pre-orders for its highly anticipated Switch 2, made in Japan, have been delayed due to a 24% tariff imposed on the product. The company stated it is “assessing the potential impact of tariffs and evolving market conditions” ahead of the planned June 5 launch.
As the U.S. faces the consequences of escalating tariffs, the future of global trade hangs in the balance, with many industries bracing for more disruptions in the coming months.
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