Soon after addressing the USA about the COVID-19 pandemic, Donald Trump had to clean up his remarks to clarify that he was not proposing a ban on cargo from Europe. The president outlined strict travel restrictions on passengers arriving in the United States from hard-hit portions of Europe during his Oval Office remarks.
“And these prohibitions will not only apply to the tremendous amount of trade and cargo but various other things as we get approval,” Trump said. “Anything coming from Europe to the United States is what we are discussing.”
“THE RESTRICTION STOPS PEOPLE NOT GOODS”
But while the Trump administration has sought to limit European imports as part of his trade policy, cargo has never been on the table as a way to control the spread of COVID-19. Cargo from China continued, for instance, even as it became clear that country was at the epicenter of the virus.
The White House quickly noted that the restrictions were focused on people, not boxes, and Trump later appeared to clarify his remarks in a tweet. “The restriction stops people not goods,” Trump posted. “Please remember, very important for all countries & businesses to know that trade will in no way be affected by the 30-day restriction on travel from Europe,” he said.
WHAT WILL HAPPEN TO GOODS TRANSPORTS TO THE USA
However, air cargo will have difficulty getting to the U.S. due to the stoppage of passenger flights from EU to USA. Cargo flights will continue to travel, but are likely to be congested. Also because of this, they will be able to use other hubs to bring in cargo (e.g. stopping over Toronto, Madrid, London to get to the U.S.). Freight by ship will continue to travel, as cargo ports have not been restricted.
Although a contraction in consumption is foreseeable due to COVID-19 crisis, there will be no problems with out of stock of common goods. In fact, warehouses of imported goods in the USA have stocks to withstand demand for months.