The supply of many foreign-made goods into the US is likely to come to a grinding halt as a result of President Donald Trump’s tariffs, sources told The Post Monday.
A baseline tariff of 10% was applied to many countries Saturday, with heftier percentages applied to the “worst offenders,” who levy high tariffs on US goods coming into them, in two days.
Companies producing everything from toys to luxury wristwatches said they are now holding off shipping goods – risking America going from the land of plenty to the land of plenty unavailable.
The first luxury items to leave circulation: Jaguar, Range Rover and Land Rover vehicles, all manufactured in the UK.
“I cannot risk putting any product on the water that might incur [high] tariffs as implemented and threatened by the President,” Jay Foreman, chief executive of Basic Fun, which makes toys in China, told The Post.
Leaving almost no territory off the list, even the tiny South Africa nation of Lesotho (top exports diamonds, denim and suits) and St. Pierre and Miquelon, a small French archipelago near Canada with a population of just 5,000, will face 50% tariffs.
Although many producers are waiting to see what happens – hoping deals for lower tariffs will be struck in the coming days – the supply of plenty of in-demand items will be disrupted.
Here’s what has been affected so far:
Jaguars, Land Rovers and Range Rovers
Brakes are being put on the shipping of these three luxury automobiles.
In a statement to Sky News, a Jaguar Land Rover spokesman politely made clear that drivers in other global markets will have no trouble hugging curves behind the steering wheels of their UK-made Jags and Rovers, but American shipments – now subject to an extra 10% tariff – have been stopped
“Our luxury brands have global appeal…” the rep said. “Our priorities now are delivering for our clients around the world and addressing these new US trading terms.”
High-tech goods and CT scans
China is among America’s most dug-in trading partners, so it’s hardly surprising the country did not take well to the 54% tariff, including earlier tariffs, with which it has been slapped.
In fact, China bit back with a 34% retaliatory tariff of its own, leading Trump to threaten another 50% tariff add-on which would make total tariffs 104%.
On top of that, the communist country has also promised to limit the shipping of seven rare earth elements — some of which are used for the manufacturing of electronics and high-tech items, including lasers, high-powered magnets for wind turbines, jet engine coatings and Tesla cars.
China has also promised to “investigate” the shipping of X-ray tubes which are used in CT scans, which could potentially impact Americans’ medical screenings.
Swiss watches
Luxury timepieces from Switzerland – including from Rolex, Breitling and Audemars Piguet – are taking a minute as they wait for the tariff situation to continue heating up or simmering down.
“All the major brands have held shipping,” Erik Boneta, who sells Rolexes and other luxury watches through his company Boneta, Inc., told The Post.
“They’re waiting to see what happens with the [31%] tariffs. If they do take effect, I think that everyone, from manufacturers to consumers, will either eat a little bit of the cost or pay a little bit more.”
While there is talk of the market for used watches enjoying a price rise in all of this, Boneta is not holding his breath waiting for that to happen.
“With the stock market getting crushed, people are not going out of their way to buy luxury watches,” he said, adding that that updated shipping news will likely not come speedily. “One thing the Swiss do not do is make quick decisions. They take their time and think it through.”
Kids’ toys
Come July, Tonka Trucks, Care Bears, K’nex, Lincoln Logs and many more toys could be completely sold out in the US.
The classic toys are made by Boca Raton, Fla. based Basic Fun, which today halted shipments of all its toys made in China.
“It’s one thing to try to absorb or pass along 10 percent to 20 percent but 54 percent to [potentially] 104 percent is impossible!” said Foreman. “The consumer will just shut down, as will global trade.”
Nintendo Switch 2
Forward-thinking gamers who are in the market for a state of the art console will have to make do with what they have for now.
Nintendo is holding off shipping pre-orders for its highly desired Switch 2, made in Japan which will now be subject to a 24 percent tariff.
In a statement made to The Verge, the company said pre-orders will not go out as planned “in order to assess the potential impact of tariffs and evolving market conditions.”
Right now the plan is for Switch 2 to launch on June 5.
