US tariffs will hit its own consumers. Retailers and suppliers are bracing for impact.

Washington and Wall Street have been in turmoil for nearly a month over President Donald Trump’s tariffs, and the fallout is now approaching US households. Retail giants like Walmart and Target warned Trump last week of looming shortages and higher prices, Bloomberg reports.

The tariffs hit during a crucial inventory buildup season for back-to-school and holiday sales, forcing retailers to choose between canceling orders, raising prices, laying off workers, or facing empty shelves and financial strain, the business news service writes.

Since the US raised tariffs to 145% in April, cargo shipments from China have dropped by up to 60%, with overall volumes down 40%, according to Bloomberg data. Bookings for standard containers were 45% lower by mid-April, the Financial Times reports, citing Vizion data.

As it stands, the World Trade Organization projects that US-China trade could fall by 80%, fueling recession fears. US imports are expected to drop 7% in 2Q — the steepest fall since the pandemic.

“We’re in a period where the damage is manageable, but every week the damage level is going to increase,” CEO of toymaker Basic Fun Jay Foreman, told Bloomberg. Huge retailers have been pausing orders from suppliers outsourcing their products from China and are expected to cancel them if the standoff remains, he explained

Rising prices are dragging consumer spending down, with consumer confidence weakening, Momentum Commerce CEO John Shea told the Financial Times. Some executives anticipate consumer goods prices could double, further tightening sentiment and spending, Bloomberg writes.

To mitigate the tariff impact, importers are shifting sourcing to Southeast Asia, with rising exports from Cambodia, Thailand, and Vietnam. Container prices are already rising from Vietnam but falling sharply on China – US routes, data from the cargo booking platform Freightos shows.

MARKETS THIS MORNING-

Asian markets are mixed this morning, with Japan’s Nikkei unchanged, while Hong Kong’s Hang Seng is down 0.5% and Shanghai Composite is down 0.1%. Meanwhile, Wall Street futures are signalling a lower opening, after markets were boosted yesterday by the US hinting at a trade agreement to be finalized soon with an unnamed country.

THE CLOSING BELL-

The EGX30 rose 0.1% at today’s close on turnover of EGP 3.8 bn (14.9% below the 90-day average). International investors were the sole net sellers. The index is up 7.7% YTD.

In the green: Egypt Alum (+3.5%), Fawry (+3.0%), and TMG Holding (+2.8%).

In the red: Rameda (-2.2%), Orascom Development Egypt (-1.7%), GB Corp (-1.6%).