Mothership founder and CEO Aaron Peck explains what tariffs mean for U.S. imports and how Chinese manufacturers and businesses reacted on KCBS Radio. 

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As U.S. tariffs on Chinese goods ramped up, U.S. importers and Chinese exporters adapted their supply chains quickly. April has seen a surprising level of continued freight activity driven by seasonal demand and a strong U.S. consumer, Peck said.

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How Chinese manufacturers are responding to U.S. tariffs on Chinese imports

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Jason Brooks

U.S. tariffs on China have created shock waves in the global supply chain as U.S. firms rush to get ahead of the tariffs in March by stocking up, and that's leading to a big slowdown in freight shipments from China to the U.S. in April, according to industry tracker FreightWaves.

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According to Aaron Peck, CEO of Mothership, an AI-powered tech marketplace matching freight with carriers, U.S. customers are hopeful that the current disruption is temporary, but the sentiment is much different in China, where factory owners are stressed out, and that's creating volatility.

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Aaron Peck

China manufacturers are already operating on a very, very thin margin, and that comes from them. If you've been to China, you'd understand that they're—you know, anyone that's been there knows—that they're highly competitive with one another, and so that drives margins down to a super thin level to begin with.

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Jason Brooks

Peck says some consumer categories continue to see strong movement due to their seasonal nature, including furniture and apparel.

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The stock market was closed for Good Friday—that also included commodities and bonds, on “The MoneyWatch,” Jason Brooks, KCBS.

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How U.S. importers are responding to increasing tariffs on Chinese imports

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‍Jason Brooks

Tariff uncertainty is keeping logistics executives awake at night, with U.S. companies navigating steep tariff increases for Chinese imports.

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Aaron Peck is the CEO of Mothership, an Austin, Texas-based tech marketplace using AI-powered technology for first- and last-mile logistics, and he says U.S. companies did a lot of front-running of tariffs in March, but April remains impressively high, something he chalks up to a strong U.S. consumer and the realities of the seasonal supply chain for many Chinese manufacturers. 

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Aaron Peck

If you have a warehouse filled with goods right now, and the tariffs are in place, but you need to essentially move those goods to get ready for summer peak—and the goods that are going to come in around that time, which seasonally might be completely different—then, you have no choice but to move what you have in the warehouses right now.

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Jason Brooks

Peck says furniture and apparel are seeing heavy movement due to the seasonal nature of those categories.

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According to the Drewry World Container Index, the standard bearer for freight shipping, the index decreased by 3% this week, indicating weakening demand.

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Investors got a breather today with Wall Street closed for Good Friday, on “The MoneyWatch,” Jason Brooks, KCBS.