Port activity in Shanghai and Guangdong has sharply declined following the implementation of a 145% tariff imposed by President Donald Trump, triggering a ripple effect across China's manufacturing and shipping sectors, according to reports from exporters and local officials, Breitbart reported.
Radio Free Asia (RFA) cited accounts from Chinese exporters and port officials on Saturday who reported that traffic has visibly slowed in China's major port cities.
In some areas, factory production has reportedly "ground to a halt."
RFA said its journalists observed substantial visual evidence supporting claims of stagnation, including warehouses overflowing with unshipped merchandise and stacks of shipping containers left untouched on the docks.
Chinese media reported that two of Shanghai's largest shipping terminals "came to an abrupt halt" on Thursday, just one day after experiencing heavy commercial activity. Exporters noted that other major shipping hubs across China have since fallen quiet.
The surge of activity last week was fueled by a cutoff date imposed by U.S. Customs and Border Protection, which announced that any freight in transit before April 9 would be exempt from the new 145% tariff enacted by Trump. After that deadline, port operations reportedly fell off sharply.
Analysts now expect China's major shipping centers to operate at half capacity or less while the tariff conflict persists.
Peripheral industries in these port cities are also feeling the impact. RFA quoted local businessmen describing a "helplessness among the general public" and citing "signs of economic depression" as businesses such as shops and restaurants temporarily closed or saw declining foot traffic.
In a commentary published Sunday by the Maritime Executive, Blaine Worthington, a Marine Corps logistics veteran and current associate at Booz Allen Hamilton, argued that the United States and its allies must weaken China's grip on global shipping during the slowdown.
Worthington emphasized that the U.S. merchant marine fleet currently consists of only about 185 ships, compared to China's 7,838. He also pointed out that the U.S. builds just 0.1% of the world's commercial ships, while China produces more than half — 50.7% — of global output.
"The U.S. should work with partner nations to break China's stranglehold on shipping during the tariff slowdown," Worthington wrote.
He proposed forming a "multilateral maritime alliance" with key Indo-Pacific partners such as Japan, the Philippines, and South Korea to accelerate shipbuilding and deployment. According to Worthington, this strategy would be more feasible in the near term than reviving U.S. shipyards, which could take years.
Australia has reportedly explored a similar approach as concerns grow over China's dominance in the sector.