US-China Trade Tensions Trigger Supply Chain Freeze, Echoing COVID-Era Disruptions

The US imposition of 145% tariffs on Chinese goods has effectively created a trade embargo between the world’s two largest economies. Shipping volumes from China are grinding to a halt, drawing comparisons to the COVID-era supply chain shocks of 2020-2021.

FreightWaves CEO Craig Fuller cautions against overstating parallels with pandemic disruptions. Essential goods like toilet paper and food won’t face shortages due to US self-sufficiency in these sectors. The real impact lies in manufacturing components and consumer electronics.

This supply chain freeze emerges as cryptocurrency markets show renewed sensitivity to macroeconomic shocks. Bitcoin’s correlation with traditional risk assets has strengthened in Q2 2024, leaving digital assets exposed to any prolonged trade disruption.