–>The OOCL Violet, docked at the Port of Long Beach, Calif. on April 25, is one of the first ships to arrive in the US with Chinese cargo subject to a 145% tariff. Photographer: Eric Thayer/Bloomberg<!–>
–><!–>On April 24, against the backdrop of towering cranes, dockworkers at the Port of Long Beach began unloading the OOCL Violet, a hulking shipping vessel carrying thousands of containers full of goods bound for the US. The Violet is one of the first ships confronting a harsh, new reality: a steep 145% tariff rate on nearly half of its Chinese cargo, brought on by President Donald Trump’s ongoing trade war with China.–><!–>
–><!–>The ship had already begun loading goods bound for the US prior to Trump’s April 2 tariff announcement. When the ship reached California, it carried cargo with a total estimated value of at least $564 million, according to detailed bills of lading data from IHS Markit. About 40% of the goods were likely subject to the new 145% rate, according to Bloomberg News estimates. The data suggests importing companies face at least $417 million in new tariffs for all goods on the ship. That’s on top of preexisting import fees.–><!–>
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–>Source: Bloomberg analysis of bills-of-lading data and estimates from IHS Markit, White House tariff announcements and US Customs and Border Protection guidance<!–>
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–>Note: Data as of May 2. Estimated values and tariffs are rounded.<!–>
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Calculating tariffs involves a complex set of factors including the type of product being imported, where it originated, and — for goods shipped in the week after Trump’s announcement — when the ship left each port prior to arriving in America.<!–>
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The Violet first began loading cargo in Dalian, China, a major seaport located north of the Yellow Sea. At that time, most Chinese goods faced an additional 20% US tariff rate, originally stemming from Trump’s concerns about China’s role in the fentanyl crisis. Mere days later, as the ship left Ningbo, China, the top new rate had already risen to 45% for cars and some aluminum and steel products.<!–>
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In the biggest blow to the Violet’s customers, a final tariff hike took effect just hours before the ship left Shanghai, pushing new duties on Chinese goods to a staggering 145%. This last-minute increase alone likely added $220 million to the import costs of US companies with cargo aboard the ship.<!–>
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–>Source: Bloomberg analysis of bills-of-lading data and estimates from IHS Markit, White House tariff announcements and US Customs and Border Protection guidance<!–>
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–>Note: Data as of May 2.<!–>
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A closer look at the Chinese cargo aboard the Violet highlights the wide-ranging impact of Trump’s trade war with the world’s second-largest economy:<!–>
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–>Source: Bloomberg analysis of bills-of-lading data and estimates from IHS Markit, White House tariff announcements and US Customs and Border Protection guidance<!–>
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–>Note: Estimated values and tariffs are rounded. “Other” also includes the miscellaneous manufactured goods category, which has total estimated new tariffs of more than $2 million. Data as of May 2.<!–>
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–><!–>In the short term, the new tariffs should generate billions of dollars in immediate revenue for the US Treasury — a cost that falls on American importers, who can choose to pass that onto consumers. The windfall, however, could be temporary. The number of cargo ships headed from China to the US has plummeted in recent weeks.–>
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For businesses such as Arctic Fisheries, dealing with the new tariffs is the latest challenge after years of turmoil. The company’s president said he expects he’ll need to borrow money — incurring interest charges — to pay the tariff bill for his fish shipment on the Violet, although he hasn’t yet received the invoice. This comes after constant disruptions since 2018, including tariffs imposed by the first Trump administration, pandemic-related supply chain chaos, and sourcing issues due to the Russia-Ukraine war.<!–>
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While Kotok said he intends to pass the tariff costs onto his customers, existing fixed-price contracts limit his ability to do so.<!–>
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“In the administration’s attempt to put the screws to other nations, they put the vise on American businesses,” Kotok said, “many of whom will not survive.”<!–>
