Odd Lots

Anna Wong: Empty Shelves Are Coming Soon

Apr 25, 2025

Anna Wong, Chief US Economist at Bloomberg Economics, sheds light on the looming impact of tariffs on the supply chain and retail landscape. She details how shipping trends from China expose vulnerabilities as major retailers prepare for the holiday season. Wong argues that while economic data seems stable, the real consequences are felt in layoffs and profit margins. Listeners will find her insights into the disconnect between economic indicators and daily life particularly revealing, especially in light of rising household costs and altered consumer behaviors.

23:49

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Anna Wong

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Quick takeaways

The recent tariffs are severely disrupting supply chains, leading to potential shortages of holiday merchandise for retailers and empty shelves soon.

As profit margins shrink due to tariffs, small businesses are facing greater risks of layoffs and increased unemployment rates in the near future.

Deep dives

Impact of Tariffs on Supply Chains

The recent implementation of tariffs is significantly disrupting supply chains, particularly concerning imports from China and South Korea. As companies prepare for the holiday season, there is a notable decline in container bookings, which suggests that retailers may face material shortages and even empty shelves soon. The timing of these tariffs coincides with critical planning periods for retailers, who typically order inventory months in advance to ensure products are available for major shopping events. Consequently, the uncertainty surrounding tariffs is causing businesses to cancel orders and reassess their stock levels, leading to a high likelihood of inventory shortages this coming holiday season.

Intro

2min

Economic Decoupling: Impacts and Predictions

11min

Economic Uncertainty and Supply Chain Challenges

6min

Economic Disconnect: Data vs. Daily Life

5min

The Cultural Impacts of Holiday Consumerism

3min

If you look at most of the official hard data right now, there still isn't much evidence of a sharp downturn. Sure, all the surveys are abysmal, but the actual measures of economic activity are ok. But there is already data showing something severe is happening, and that can be seen in the volume of cargo flowing from China to the US. Of course, this is intentional. This is the whole point of tariffs. But the fear is that this is going to be acute and dramatic to consumer companies, and that it will happen very soon. On this episode of the podcast we speak with Anna Wong, Chief US Economist at Bloomberg Economics, who walks us through the real life and macro-economic impact of what we've already seen. She says that the tariffs hit right at the moment that major retailers are planning for their holiday merchandise, and that before too long we'll start seeing fewer goods and fewer varieties of all kinds of things. We also discuss the inflation dynamics, and how tariffs may not show up in terms of higher CPI, but instead through higher layoffs, compressed profit margins, and falling real wages.

Read More: The Jaws That Could Devour Your Profit Margins

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Odd Lots

Anna Wong: Empty Shelves Are Coming Soon

Episode guests

Podcast summary created with Snipd AI

Quick takeaways

Deep dives

Impact of Tariffs on Supply Chains

Price Adjustments and Consumer Impact

Economic Outlook and Employment Projections

Remember Everything You Learn from Podcasts