TAG Industrial Watch: June 14, 2025
The U.S. Census Bureau recently released April’s international trade report, and as expected, imports took a noticeable dip from March’s inflated level. In response to President Trump’s Liberation Day tariffs that went into effect in early April, American importers, who frontloaded the tariffs in March by a monthly record of $345 billion, reduced the nation’s imports to $276 billion in April. While April’s imports were on par compared to the same month last year, shipping container volume in May fell by nearly 10% month-over-month, indicating that imports are continuing to slide (Descartes).
Given that industrial real estate in the U.S. largely depends on imports, the slowdown in shipments is contributing to the quarterly contraction in industrial demand. With less than three weeks left in Q2, net absorption is set to contract into negative territory for the first time since the economy was emerging from the Great Recession in Q1 2010. Trump’s recent decision to double steel and aluminum tariffs to 50% doesn’t bode well for June imports either, compounding the impact on the industrial market. The good news is that America’s export volume is holding steady despite reciprocal tariffs, thanks to the help of the dollar’s decline against foreign currencies that began after Liberation Day. With the dollar moving lower, American goods are becoming cheaper for foreigners. For years now, TAG has highly recommended that investors purchase specialized properties that are used in the production of goods that have foreign appeal. If the dollar continues to lose value, as TAG expects, the decline will only serve to support such properties at a time when decelerating rent growth is putting pressure on industrial property values.
I N D U S T R I A L N E W S
Descartes Releases June Global Shipping Report: U.S. Container Import
Volumes Drop In May Led by Sharp Decline in Imports from China
Descartes – June 9, 2025
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Discovery CRE Provides Nearshoring Guidance
Connect CRE – June 5, 2025
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US Job Growth Slows As Tariff Uncertainty Leaves Businesses In Limbo
Reuters – June 6, 2025
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May 2025 Job Cuts Up 47% Over Same Month Last Year; Cuts
Spread to Other Sectors Than Gov’t for Other Reasons Than DOGE
Challenger – June 5, 2025
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Tenant Power Peaks As Industrial Market Faces Turning Point
GlobeSt.com – June 10, 2025
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R E G I O N A L N E W S
5 Denver Properties Sold As Part Of Portfolio Sale
Connect CRE – June 9, 2025
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New Industrial Construction Took A Dip In Chicago To Start 2025
REjournals – June 10, 2025
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MSI Computers Corp. Buys 200,000 SF Industrial
Property In City of Industry, California
REBusiness – May 27, 2025
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Major GM Supplier Reportedly Sniffing
Around Spec Industrial Project In Arlington
Bisnow – June 6, 2025
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Freight Industry Layoffs Surge Across California, Texas
FreightWaves – May 23, 2025
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