Small importers brace for impact, seek alternatives: Freightos

The recent wave of tariff announcements has sent shockwaves through America’s small import businesses, creating unprecedented uncertainty in an already volatile global trade environment.

"These shockwaves continue with new tariffs being added (like the reciprocal tariffs), potential exclusions and delays," says the latest update from Freightos. "For now, this has left small businesses shocked and confused. Fresh data from a comprehensive survey of some importers, mostly based in the U.S., who use the Freightos Marketplace for imports reveals the depth of concern and the tangible impacts these policy shifts are having on the ground."

The data relies primarily on a survey conducted in the days before the 90 day freeze on tariffs across approximately 200 small business importers, the update added.

"Respondents rated their concern at an average of 8.9 out of 10 with 62 percent selecting the maximum level of 10. This extraordinary level of anxiety reflects not just the financial implications but also the policy uncertainty —51 percent of importers admitted they couldn’t predict the administration’s next moves on tariffs."

One-third of respondents (33 percent) paused shipments entirely while 29 percent are exploring alternative sourcing options outside of affected regions, the survey reported. "With so many swings and shifts, another 29 percent are in wait-and-see mode, hoping for clarification before making significant changes."

Importers believe the potential impact on freight volumes to be substantial, with 54 percent of importers anticipating serious to significant reductions in their import activity.

"This mirrors what we’re seeing in real-time ocean freight rates from Freightos Terminal, where container rates from China to Long Beach have dropped 16 percent since the reciprocal tariffs went into effect on April 9."

Interestingly, prices from Taiwan and Vietnam have remained elevated - likely reacting to importers’ rapid pivot to alternative sourcing markets, the update added.

The trade landscape ahead
The administration’s subsequent 90-day tariff freeze and electronics exemptions have provided temporary relief but the underlying uncertainty remains, the survey reported. "Additional proposed measures, including USTR port call fees targeting Chinese-made vessels, will likely be revised but still loom on the horizon as part of a comprehensive Maritime Action Plan requested by the President."

For air cargo, the May 3 U.S. de minimis cancellation for Chinese imports appears to be affecting e-commerce volume from platforms like Shein and Temu, though Freightos Air Index rates remain elevated at approximately $5.50/kg.

"As one resilient importer noted: Although we accelerated a few shipments before the stipulated timeline, the show must go on to combat the market."

For America’s small importers, that show now includes navigating unprecedented tariff complexity while fighting to maintain viable business models in an increasingly unpredictable trade environment, the update added.