Over the last several decades, the global economy has become more interconnected than ever, but now everything is changing. The flow of goods between the number one economic power on the planet and the number two economic power on the planet is absolutely imploding, and that is going to have enormous implications on both sides of the Pacific. I have written quite a bit about the dramatic decline of U.S. imports, but the numbers show that U.S. exports are falling precipitously as well. According to CNBC, there has been a 51 percent decline in exports at the Port of Portland and a 28 percent decline in exports at the Port of Tacoma…
What began as a rapid drop in U.S. imports as shippers cut orders from manufacturing partners around the world has now extended into a nationwide export slump, with the U.S. agricultural sector and top farm products including soybeans, corn and beef taking the hardest hit.
The latest trade data shows that a slide in U.S. exports to the world, and China in particular, that began in January now extends to most U.S. ports, according to trade tracker Vizion, which analyzed U.S. export container bookings for the five-week period before President Donald Trump’s tariffs began and the five weeks after the tariffs took effect.
The farming sector has been warning of a “crisis” and ports data is showing more evidence of lack of ability to move product out to global markets. The Port of Portland, Oregon, tops the list with a 51% decrease in exports, while the Port of Tacoma, Washington, a large agricultural export port, has seen a 28% decrease. Tacoma’s top destinations for corn, soybeans and other ag exports include Japan, China and South Korea.
Overall, there are 10 major U.S. ports that have already experienced a double digit decline in export volume.
Agricultural exports are being hit harder than anything else. Needless to say, this is extremely bad news for U.S. farmers.
The Trump administration has already been discussing a vigorous aid package for farmers that are being affected by this downturn.
It appears that they certainly could use the help.
Meanwhile, imports from China are also declining dramatically…
Imports from China have fallen dramatically since Trump imposed steep tariffs – particularly since last month, when the tit-for-tat trade war sent the tariff on most Chinese goods up to 145%.
“This week, we’re down about 35% compared to the same time last year, and these cargo ships coming in are the first ones to be attached to the tariffs that were levied against China and other locations last month,” Gene Seroka, executive director of the Port of Los Angeles, told CNN Tuesday. “That’s why the cargo volume is so light.”
The drop-off in imports from China on the boats now coming into port is more than 50%, Seroka said. Many importers have canceled previous orders because US businesses aren’t interested in paying the steep tariff, which can more than double the price of Chinese goods.
There is no possible way that we are going to be able to replace the goods that are not being shipped to us from China.
Even if we started building enough factories tomorrow, it would take years before we could make up the difference.
As Flexport CEO Ryan Petersen has aptly pointed out, a 60 percent decline in containers coming to the U.S. “means 60% less stuff arriving”…
Rather than import goods to the United States, some retailers are choosing to pay to store their products in Chinese warehouses because it’s cheaper than paying the tariff, according to Ryan Petersen, CEO of Flexport, a logistics and freight forwarding broker. With importers and retailers unwilling to pay the steep cost, deliveries could continue to fall – as much as 60%, said Petersen. Consumers will start to notice very soon.
“A 60% decline in containers means 60% less stuff arriving,” Petersen told CNN’s Pamela Brown Tuesday. “It’s only a matter of time before they sell through existing inventory, and then you’ll see shortages. And that’s when you see price hikes.”
He is right.
It is just a matter of time before we experience empty shelves and very noticeable shortages.
Of course the trade war is deeply hurting the Chinese economy too…
China’s manufacturing engine is sputtering, with new data revealing the most severe hit to China’s economy since the COVID shutdown.
The country’s economy slipped from growth to contraction after the Purchasing Managers’ Index (PMI) fell below 50 in April. New export orders sank to their lowest level since December 2022 when China was still under lockdown, according to figures reviewed by the Wall Street Journal. Major financial institutions including UBS and Goldman Sachs have slashed their growth forecasts for China.
We have become deeply dependent on China, and the Chinese have become deeply dependent on us.
So let us hope that cooler heads prevail and both sides decide to start negotiating.
But even if negotiations begin immediately, it would likely be months before a deal is reached.
For now, we are just going to have to brace ourselves for difficult times. At this point, even President Trump is admitting that Americans will just have to deal with having less stuff…
Trump was asked Sunday by NBC’s Kristen Welker if he would acknowledge that his tariff plan will result in higher prices.
At first, the president suggested tariffs will “make us rich” — similar to sentiments he’s expressed when touting his economic policy. But in the next turn, he suggested that American children, for example, do not need as many toys and that Americans do not need to spend as much money on “junk we don’t need.”
“I’m just saying they don’t need to have 30 dolls. They can have three. They don’t need to have 250 pencils. They can have five,” Trump said, acknowledging the prices of such items could also go up.
The crisis that we are facing is going to be especially painful for the retail industry.
According to Challenger, Gray & Christmas, retail layoffs are already way up so far this year…
A new report from consulting firm Challenger, Gray & Christmas sheds distressing light on a vulnerable job sector: retail.
According to the report, U.S. retailers eliminated more than 64,000 jobs during the first four months of 2025, the second most of any industry. That four-month total is a 296% increase from the same four month span in 2024.
Retail bankruptcies have played a big role in this surge. Several longtime retailers announced bankruptcies in 2025, including Joann Fabrics, which left 19,000 employees without jobs; Party City, which filed for bankruptcy twice and left 16,000 workers unemployed; and Big Lots, which is finding new life after its bankruptcy but has still had to lay off 1,000 people in the process.
Sadly, we continue to get more bad news about major retailers with each passing day.
For example, we just learned that Rite Aid is going to close or sell all of their stores…
Rite Aid CEO Matthew Schroeder briefed employees Monday that all stores would either close or be sold as the company files for bankruptcy, Bloomberg reported.
The media outlet stated funding from investors fell short, and the company faced a series of economic issues, including tariffs, more expensive supply costs, pricier landlords, and what Schroeder called a “dramatic downturn in the economy.”
Even before the trade war erupted, it was being projected that 15,000 stores in the United States would close in 2025.
Boarded up stores are littering the landscape all over America, and it is getting worse with each passing day.
Yes, this is really happening.
A major economic crisis has begun, and people are going to be absolutely shocked by the things that are going to happen over the next several months.
Michael’s new book entitled “10 Prophetic Events That Are Coming Next” is available in paperback and for the Kindle on Amazon.com, and you can subscribe to his Substack newsletter at michaeltsnyder.substack.com.
About the Author: Michael Snyder’s new book entitled “10 Prophetic Events That Are Coming Next” is available in paperback and for the Kindle on Amazon.com. He has also written nine other books that are available on Amazon.com including “Chaos”, “End Times”, “7 Year Apocalypse”, “Lost Prophecies Of The Future Of America”, “The Beginning Of The End”, and “Living A Life That Really Matters”. When you purchase any of Michael’s books you help to support the work that he is doing. You can also get his articles by email as soon as he publishes them by subscribing to his Substack newsletter. Michael has published thousands of articles on The Economic Collapse Blog, End Of The American Dream and The Most Important News, and he always freely and happily allows others to republish those articles on their own websites. These are such troubled times, and people need hope. John 3:16 tells us about the hope that God has given us through Jesus Christ: “For God so loved the world, that he gave his only begotten Son, that whosoever believeth in him should not perish, but have everlasting life.” If you have not already done so, we strongly urge you to invite Jesus Christ to be your Lord and Savior today.