U.S. Chamber Coalition Letter on Tariffs and Supply Chain Congestion

Coalition Letter Tariffs and Supply Chain Congestion Final 061725

Download

Published

June 18, 2025

The Honorable Sean Duffy
Secretary
U.S. Department of Transportation
1200 New Jersey Ave, SE 1401 Constitution Ave NW
Washington, DC 2059

The Honorable Howard Lutnick
Secretary
U.S. Department of Transportation U.S. Department of Commerce
1401 Constitution Ave NW Washington, DC 20590

The Honorable Louis Sola
Chairman
Federal Maritime Commission
800 North Capitol Street, N.W.
Washington, D.C. 20573

Dear Secretary Duffy, Secretary Lutnick and Chairman Sola,

On behalf of the undersigned trade associations representing U.S. importers, exporters, transportation providers and other supply chain stakeholders, we are writing to urge the administration to engage with all supply chain stakeholders to address concerns about anticipated port congestion and supply chain disruption that will soon impact U.S. competitiveness. There is great concern among stakeholders that the tariff implementation changes, especially with China, will recreate the supply chain challenges we faced during the pandemic with severe port congestion, inaccessible vessel capacity and containers, higher freight rates, and shipment delays. We respectfully urge the administration to reconstitute the White House Supply Chain Disruption Task Force to address these issues proactively and as soon as possible.

While we appreciate the goal of trying to negotiate better deals for the U.S. economy, the use of tariffs is having some unintended consequences for U.S. importers, exporters and related industries, including the logistics network across the country. With the initial imposition of the 145% tariffs on China, many companies either paused or cancelled their orders for imports to the United States. The immediate impact was a sudden decline in vessel traffic to the United States from China, which caused ocean liner carriers to reduce capacity by either pulling vessels out of the market or engaging in blank sailings in the U.S. trades, and set off layoffs and turmoil throughout multi-modal logistics industry.

With the welcomed de-escalation with China and a 90-day pause on the application of reciprocal tariffs over the 10% “base” level, many companies, both large and small, are now resuming movement of those previously paused or cancelled orders while negotiations continue between the countries. This rush to move cargo is being met with a shortage of empty shipping containers at origin and limited vessel capacity as carriers rework their vessel deployment to accommodate the spike in cargo. Further, we are starting to see congestion at foreign ports and significant increases in ocean freight rates and charges, like what many companies experienced during the pandemic a few years ago. We have already seen several press articles (11 , 22 , 33) noting the increased freight rates, which are now adding additional costs for businesses.

In preparing for a potential surge of cargo from Asia, especially to our West Coast ports, the U.S. landside transportation infrastructure and service providers also must be prepared for increased activity. The administration is requested to engage our ports, terminal operators, truckers, railroads, warehouses and labor to ensure readiness to support the seamless flow of cargo through the ports as it begins to arrive. We cannot afford to see a repeat of the congestion and resulting cargo velocity issues that plagued U.S. supply chains during the pandemic.

We also encourage the administration to work with ocean carriers, ports, terminal operators, rail carriers, and trucking companies to ensure they are able to meet the demands of U.S. importers and exporters especially as congestion issues start to arise in overseas markets and freight rates are increasing as well. The organizations below respectfully ask the administration to take action to mitigate the risk of severe supply chain disruptions and minimize adverse impacts on the global competitiveness of U.S. exporters and importers.

We stand ready to assist the administration in these efforts and thank you for your attention to this important matter.

Sincerely,

Accessories Council
ACT | The App Association
Agribusiness Council of Indiana
Agricultural Retailers Association
Agriculture Transportation Coalition
Air-Conditioning, Heating, and Refrigeration Institute
Airforwarders Association
Alliance for Automotive Innovation
Alliance for Chemical Distribution
merican Apparel & Footwear Association (AAFA)
American Association of Exporters and Importers
American Automotive Policy Council
American Bakers Association
American Cement Association
American Chemistry Council
American Christmas Tree Association
American Composites Manufacturers Association
American Cotton Shippers Association
American Down and Feather Council
American Frozen Food Institute
American Home Furnishings Alliance
American Logistics Association
American Pet Products Association
American Pyrotechnics Association
American Seed Trade Association (ASTA)
American Soybean Association
American Specialty Toy Retailing Association (ASTRA)
American Spice Trade Association
AmericanHort
Associated Equipment Distributors
Association of Equipment Manufacturers
Association of Food Industries
Auto Care Association
Boston Custom Brokers & Freight Forwarders
Association California Building Industry Association
California Chamber of Commerce
California Retailers Association
California Walnut Commission
California Wheat Commission
Can Manufacturers Institute
CAWA - Representing the Automotive Parts Industry
CCBFA - Chicago Customs Broker Forwarder Association
Coalition of New England Companies for Trade
Coalition of Services Industries
Color Pigments Manufacturers Association
Columbia River Customs Brokers and Forwarders Association
Columbia River Steamship Operators’ Association
Connected Health Initiative
Connecticut Retail Network
Consumer Technology Association (CTA)
Corn Refiners Association
Council of Fashion Designers of America (CFDA)
Council of Supply Chain Management Professionals (CSCMP)
Customs Brokers & International Freight Forwarders Association of Washington State
Customs Brokers and Forwarders Association of Northern California
Detroit Customs Brokers and Forwarders Association
Distilled Spirits Council of the U.S.
Edible Oil Producers Association
Entertainment Software Association
Exhibition Services & Contractors Association
Exhibitions & Conferences Alliance
Experiential Designers & Producers Association (EDPA)
Fashion Accessories Shippers Association
Florida Customs Brokers and Forwarders Association
FMI - the Food Industry Association
Footwear Distributors & Retailers of America (FDRA)
Fresh Produce Association of the Americas
Game Manufacturers Association
Gemini Shippers Association
Georgia Retailers
Global Business Alliance
Global Cold Chain Alliance
Greenabl Shippers Association
Halloween & Costume Association
Health Industry Distributors Association (HIDA)
Home Fashion Products Association
Household & Commercial Products Association
Houston Customs Brokers & Freight Forwarders Association
ICSC Idaho Grain Producers Association
IL Soybean Growers Illinois Retail Merchants Association
Independent Freight Forwarders & Customs Brokers Association of Savannah
Institute of Makers of Explosives
Intermodal Motor Carriers Conference
International Association of Exhibitions and Events
International Association of Movers
International Association of Venue Managers
International Freight Forwarders & Customs
Brokers Association of New Orleans
International Fresh Produce Association
International Housewares Association
International Housewares Shippers Association (IHSA)
International Warehouse Logistics Association (IWLA)
International Wood Products Association
Juvenile Products Manufacturers Association
Kansas Chamber
Kansas Retail Federation
Kansas Soybean Association
Kentucky Retail Federation
Kentucky Soybean Association
Leather and Hide Council of America
Los Angeles Customs Brokers and Freight Forwarders Association
Louisiana Maritime International Chamber of Commerce
Louisiana Retailers Association
Maple Flooring Manufacturers Association
Maryland Retailers Alliance
Meat Import Council of America (MICA)
MEMA, The Vehicle Suppliers Association
Michigan Retailers Association
Midwest Dry Bean Coalition
Minnesota Soybean Growers Association
Missouri Retailers Association
Montana Grain Growers Association
Motorcycle Industry Council
National Animal Supplement Council
National Association of Beverage Importers (NABI)
National Association of Chain Drug Stores (NACDS)
National Association of Foreign-Trade Zones (NAFTZ)
National Association of Home Builders
National Association of Music Merchants
National Association of Waterfront Employers (NAWE)
National Association of Wheat Growers
National Association of Wholesaler Distributors
National Confectioners Association
National Cotton Council
National Council of Chain Restaurants
National Customs Brokers and Forwarders Association of America (NCBFAA)
National Fisheries Institute National Foreign Trade Council
National Industrial Transportation League
National Lumber & Building Material Dealers Association
National Milk Producer Federation
National Pork Producers Council
National Restaurant Association
National Retail Federation
National Sporting Goods Association
National Turkey Federation
National Wooden Pallet & Container Association
NC AgriBusiness Council
NCBFAA Shippers Association
Nebraska Hospitality Association
Nebraska Retail Federation
New Hampshire Retail Association
New Jersey Retail Merchants Association
New York New Jersey Foreign Freight Forwarders and Brokers Association Inc.
North American Association of Food Equipment Manufacturers (NAFEM)
North American Formal Apparel Association
North American Millers’ Association
North American Renderers Association
North Carolina Sweetpotato Commission
North Texas Customs Brokers and Freight Forwarders Association
Northarvest Bean Growers Association
Northeast Agribusiness & Feed Alliance, Inc.
Ohio AgriBusiness Association
Ohio Soybean Association
Oregon Association of Nurseries
Outdoor Power Equipment Institute
Outdoor Power Parts and Accessories Association (OPPAA)
Pacific Coast Council of Customs Brokers and Freight Forwarders Association Inc. (PCC)
Pacific Northwest Waterways Association
Peanut and Tree Nut Processors Association (PTNPA)
Penn York lumberman's
Pennsylvania Retailers Association
Performance Racing Industry (PRI)
Personal Care Products Council
Pet Advocacy Network
Pet Food Institute
Pet Industry Distributors Association
Philadelphia Customs Brokers & Forwarders Association
Plumbing Manufacturers International
PRINTING United Alliance
Promotional Products Association International (PPAI)
Recreational Off-Highway Vehicle Association
Recycled Materials Association
Retail Association of Maine
Retail Council of New York State
Retail Industry Leaders Association
Retail Merchants of Hawaii
Retailers Association of Massachusetts
San Diego Customs Brokers Association SEMI
Snowsports Industry America
Society of Independent Show Organizers, SISO
South Dakota Agri-Business Association
South Dakota Soybean Association
Southern California Leadership Council
Specialty Equipment Market Association (SEMA)
Specialty Soya and Grains Alliance
Specialty Vehicle Institute of America
Sports & Fitness Industry Association
Tag and Label Manufacturers Institute
Tea Association of the U.S.A., Inc.
TechNet
Technology Trade Regulation Alliance (TTRA)
Texas International Produce Association
The American Waterways Operators
The Baltimore Customs Brokers & Forwarders Association
The Fashion Jewelry and Accessories Trade Association
The Fertilizer Institute
The Hardwood Federation
The Sulphur Institute
The Toy Association
Toy Shippers Association
Transportation Intermediaries Association (TIA)
Travel Goods Association (TGA)
U.S. Sweet Potato Council
U.S. Apple Association
U.S. Chamber of Commerce
U.S. Dairy Export Council
U.S. Fashion Industry Association
U.S. Meat Export Federation
UFI - The Global Association for the Exhibitions Industry
United States Council for International Business
Utah Food Industry Association
Utah Retail Merchants Association
Virginia Retail Federation
Washington Association of Wheat Growers
Washington Retail Association
Washington State Potato Commission
Washington Trucking Associations
Water Quality Association
West Virginia Forestry Association
West Virginia Retailers Association
Window and Door Manufacturers Association
Wine Institute
Wisconsin Soybean Association
Women in Toys, Licensing & Entertainment