Chinese Exporters Gear Up for Renewed Trade with the U.S. as Negotiations Commence

By Casey Hall

SHANGHAI, May 9 (Reuters) – Shipping agents in China are once again securing container space for exports to the U.S. after a wave of cancellations linked to tariffs.This comes as trade discussions between Beijing and Washington are set to kick off in Switzerland.

As President Trump slapped hefty tariffs—up to 145%—on Chinese goods on April 10, trade has taken a nosedive. In retaliation, China imposed its own tariffs of 125% on American products. These U.S. tariffs impact around 80% of shipments from china, leading to a staggering 60% drop in sailings during April, according to Flexport, a logistics firm. Hapag-lloyd reported that about 30% of their shipments from china were canceled last month.

However, things have shifted since late April; traders are now actively purchasing shipping capacity for mid-May deliveries. Several unnamed executives from freight forwarding companies confirmed this trend is gaining momentum.

Interestingly enough, four exporters based in China—some supplying major retailers like Walmart—shared with Reuters that they’re gearing up to resume shipments soon—a detail not previously reported.

With both nations softening their rhetoric regarding trade and negotiations set for Geneva this Saturday, ther’s renewed hope among exporters that tariff reductions could be on the horizon. Recently, trump hinted at the possibility of lowering those steep rates.

“We’re all eager for some relief from these tariffs this month,” said Liu—a toy manufacturer hailing from Dongguan who preferred not to disclose her full name for privacy reasons. She noted that nearly half her orders used to come from U.S.-based clients like Walmart.

EMPTY SHELVES?

But it’s not just wishful thinking driving these renewed shipping efforts; there’s real concern about inventory shortages in the U.S., especially for items like toys and electronics that can’t be easily sourced elsewhere quickly enough due to ongoing tariff disputes.If shipments don’t leave by June’s end, American shelves could start looking pretty bare soon after—a sentiment echoed by Chinese exporters speaking with Reuters. “Companies are running low on stock while Trump has dialed back his aggressive stance,” remarked Jonathan Chitayat of Genimex Group—a contract manufacturer known for producing everything from Bluetooth speakers to household bins.

The looming threat of empty store shelves within the next couple months is pushing U.S clients into action—they need those goods shipped irrespective of any tariff developments or delays ahead.

Liu mentioned that after nearly a month-long halt in orders heading stateside, she expects shipping will pick up again this month—even if volumes aren’t what they used to be—as her American customers scramble to replenish their supplies.

She also pointed out an crucial fact: if her products reach America without any reduction in tariff rates being implemented first, it’ll ultimately be consumers who feel the pinch when prices rise due solely to those extra costs imposed by tariffs.

Judah Levine at Freightos noted some recovery was bound to happen eventually given how intertwined these economies have become: “both sides are starting feeling pressure.” He added that recent drops followed months where businesses rushed orders forward anticipating higher costs down the line due specifically because of Trump’s policies: “Eventually you run out.”

Walmart stated they haven’t halted purchases based solely on country origin or product categories but emphasized working closely with suppliers daily amid such unpredictable circumstances affecting customers’ needs across various sectors.Hapag-Lloyd chose not comment further regarding current freight bookings between the two countries citing ongoing fluidity within market conditions.

Dominic desmarais at Liya Solutions warned freight prices might spike post-May 15 as activity ramps back up; estimates suggest moving a standard container between Shanghai and Los Angeles could cost anywhere between $2,640-$3,781 early May alone!

However optimistic predictions about an immediate resolution seem overly hopeful according Desmarais’ viewpoint: “Back when Trump initiated similar measures back in ’18 it took two years before anything substantial happened.” He remains skeptical whether talks happening now will yield fast results either way!

(Reporting by Casey Hall; additional contributions by Siddharth Cavale & Lisa Baertlein; Editing handled by Lisa Jucca & Kate Mayberry)