Trade Tensions Ease as China-US Tariff Pause Sparks 300% Surge in Shipping Demand

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Container shipments from China to the United States have experienced a significant increase following the temporary halt in retaliatory tariffs between the two countries. Data from the container-tracking company Vizion revealed that the volume of twenty-foot equivalent units (TEUs) surged by nearly 300 percent, rising to 21,530 TEUs in the week ending May 12. This marks a sharp rise from the previous week’s average of 5,709 TEUs, as highlighted by Ben Tracy, Vizion’s vice president of strategic business development.

Earlier in the year, shipments had sharply declined when the US announced a steep hike in tariffs on Chinese goods, raising duties up to 145 percent. However, trade activity began to recover rapidly after the two nations agreed to a 90-day tariff suspension, providing temporary relief amid escalating trade tensions.

Under the terms of the agreement, US tariffs were reduced from 145 percent down to 30 percent, while China lowered its import duties on American products from 125 percent to 10 percent. The pause in tariffs has contributed to a clear rebound in cargo bookings, reflecting renewed demand for container shipments.

In addition to Vizion’s report, German shipping company Hapag-Lloyd confirmed a 50 percent increase in bookings between China and the US during the early part of the week. According to CEO Rolf Habben Jansen, this growth is expected to continue as trade flows stabilize.

The tariff pause was agreed upon during trade discussions held in Geneva, Switzerland, involving high-level negotiators from both countries, including China’s vice premier He Lifeng and US Treasury Secretary Scott Bessent.

This development follows a broader pattern of the US imposing tariffs on multiple trading partners to address trade imbalances. While a 90-day tariff suspension was previously applied to several countries starting April 9 with a baseline 10 percent tariff, China had initially been excluded until this recent agreement.

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