A Reddit user recently shared a concerning post about the rapidly worsening situation at a third-party logistics warehouse where his wife has worked for over five years.
The warehouse, which handles shipping for various online stores, is reportedly struggling to keep up as new tariffs disrupt supply chains and send costs soaring.
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Major Disruptions
According to the poster, the warehouse has seen a dramatic slowdown in shipments. "Stuff's not coming in anymore. Like shipments just… stopped," the user wrote, explaining that the warehouse is getting half the trucks they used to, with containers that were supposed to land weeks ago simply “disappearing.”
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The tariffs reaching 145% on a wide range of imports from China are making it too expensive for many businesses to keep importing low-cost goods like gadgets, clothes, and household items. “All that ‘under $800 ships free‘ rule? Dead.”
The post detailed how the warehouse's clients, mostly small e-commerce brands, are slashing orders or pulling out altogether. Many are unable to afford the increased costs or have simply chosen to shift operations to Europe, where importing remains more viable. "One client's moving ops to Europe cause it's cheaper to serve customers there now," the user noted.
The impact has been severe. Managers at the warehouse are reportedly “cutting shifts, canceling overtime, and even talking layoffs.”
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Broader Effects
The situation isn't limited to just one warehouse. Other commenters chimed in with similar stories from across the logistics sector. One person working in a different 3PL facility said their company is trying to clear out as much stock as possible before shipments completely dry up, fearing mass layoffs within weeks.
On the other hand, ports in Canada are feeling the strain, with one commenter in Saint John, New Brunswick, describing a massive surge in container traffic as U.S.-bound goods are redirected. "Our port is busier than it has ever been, and our existing infrastructure is about maxed out," they wrote, noting that containers are piling up because of the increased volume.
Economic Domino Effect
Others highlighted the broader economic ripple effects, noting that layoffs in warehousing and logistics could quickly spill over into local economies, hitting everything from retail to service jobs.
"Warehouse worker gets laid off and now that family cuts back on buying things, even basics like clothes or holding off on car repairs or eating out," one user warned. "Now the local economy takes a hit… It can quickly become a death spiral."
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Small businesses, particularly those dependent on Chinese imports, also seem to be on the brink. One small business owner said their glass jar costs had tripled in the past month due to the tariffs, forcing them to rethink their entire packaging strategy at a time when cash flow is already tight.
Market Disconnect
Some commenters pointed out that the stock market seems out of touch with what’s really happening in the economy. Wall Street continues to rally on optimistic headlines about potential U.S.-China talks, so the market is essentially floating on "hopium," disconnected from the harsh reality on the ground. As one commenter put it, "The entire market is floated on hopium, zero basis in reality."
With new tariffs hitting so many corners of the economy, it's becoming increasingly evident that the impacts won't be short-lived. From warehouse slowdowns to broader supply chain disruptions, the strain is starting to show across multiple sectors.
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