U.S. Temporarily Cuts China Tariffs—Pause Triggers Shipping Surge
On Monday, 12 May, the administration announced a 90-day reduction in tariffs on Chinese imports, lowering them to 30%. While it’s unclear what will follow after the pause, the global supply chain is already feeling the effects of the change.
Surge in Shipping Demand
Lynn Reed of JAS Forwarding—a freight partner of our sister company LumEfficient—highlighted the surge in shipping activity. “Now that the tariffs with China, in particular, have been reduced,” he explained, “the mad rush to clear delayed cargo, move normal peak season freight, and pull in early orders has begun.”
He added that carriers had shifted vessels to other trade routes while tariffs remained high over the past six weeks. “Now, with the reduction, we face limited capacity on the Trans-Pacific Eastbound (TPEB) lanes—less than we had before 2 April.”
Container Shortages and Port Congestion
The combination of surging demand, limited vessel availability, and container shortages in Asia is straining the system. As freight moves again, U.S. ports and rail systems are expected to clog, leading to further delays and higher costs.
Carriers have already raised rates and implemented peak season surcharges across all TPEB lanes. Some surcharges now exceed $3,000 per 40-foot container, with more hikes likely.
Outlook After the 90-Day Window
A Chinese supplier to LumEfficient warned in a recent message that she expects China to retaliate with a 24% tariff increase on U.S. goods after the pause. She strongly urged placing a large order now, anticipating that both countries may escalate tariffs if no resolution is reached.
What Companies Should Do
For businesses relying on Chinese imports, this 90-day window is crucial. Monitoring freight updates, planning orders strategically, and preparing for renewed tariff hikes will be essential to managing costs and avoiding disruption.