Descartes, a provider of supply chain technology, said that U.S. containerized imports rose 1.6% in August compared to the same month last year, despite a drop in volume from China and key suppliers due to uncertainty surrounding President Donald Trump's new trade policy.

Last month, U.S. ports handled 2.5 million 20 foot equivalent units (TEUs) of cargo. This is down from the near record 2.6 million TEUs that were handled in July.

Imports are 3.3% higher than last year as of August.

Imports, which accounted for about 35% of the total volume in August, came from China, second largest economy in the world and an important trading partner of America. Descartes data shows that China volume is down 10.8% compared to a year ago, mainly due to declines in apparel, footwear and aluminum products.

Trump's administration, which uses import duties as a negotiation tool, has increased tariffs on goods from the majority of countries.

According to the manager of Los Angeles' busiest seaport, containerized imports peaked in July.

Industry officials say that the outlook for 2025 will be dimmed by ongoing trade frictions, a contraction in domestic manufacturing, and fears of inflation-weary customers cutting back on their spending during the crucial winter holiday season.

Trump's constantly changing tariff policies have caused shockwaves in global trade. Tariff adjustments have caused China's trade to fluctuate as competitors like Vietnam, India and Thailand gained market share.

The U.S. extended its truce with China on potential punishing tariffs to November, providing a short-term stabilization for the industry.

Trump imposed tariffs of 50% on Indian goods to discourage Russian oil purchases which fund the Ukrainian war. This could have an impact on apparel importers, such as Walmart, which is the number one container shipping customer. The move could affect apparel importers like Walmart, the No. 1 container shipping client.

Last month, a U.S. appellate court ruled that the majority of Donald Trump's Tariffs were illegal. The court allowed tariffs to stay in place until mid-October, giving the Trump administration time to appeal to the U.S. Supreme Court.

(source: Reuters)