From Top Electric.

The United States faces an unprecedented supply chain crisis in May 2025, driven by a fierce trade war sparked by President Trump’s sweeping tariffs on goods from China, Mexico, Canada, and Europe. With tariffs as high as 145% and the elimination of the de minimis rule, imports have become prohibitively expensive, causing a 35% drop in cargo volumes at the Port of Los Angeles. Containers sit empty, truckers are sent home, and warehouses face slashed shifts. This is no mere slowdown—it’s a freeze threatening a $50 billion economic hit this quarter. Retailers warn of dwindling inventories, with only five to seven weeks before shelves empty, impacting everything from back-to-school supplies to holiday decor. Rising prices for cars, food, and electronics are already hitting consumers, with Ford and GM projecting billions in added costs. Just-in-time manufacturing is faltering as parts are stuck in customs, idling factories in cities like Toledo and Tijuana. Bonded warehouses are at capacity, and customs approvals are backlogged, exacerbating the chaos. A lawsuit by 12 states challenges the tariffs’ legality, arguing Trump abused emergency powers. As the economy teeters on recession, with JPMorgan estimating a 60% chance this year, the trade war’s consequences—empty shelves, layoffs, and soaring prices—are undeniable. This policy-driven crisis, unlike a natural disaster, raises questions about its long-term cost to America’s economic stability.

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