Chinese Goods Set for a Comeback as Tariff Freeze Opens New Trade Opportunities

The recent decision by President Trump to cut tariffs on Chinese imports is expected to unleash a wave of cargo movement and create some market fluctuations, experts say.

This tariff strategy has been part of Trump’s broader approach to compel nations into renegotiating trade deals that favor the U.S., with an initial baseline tariff set at 10%. The focus on China was especially intense, with threats of tariffs soaring up to an astounding 145%. However, a deal struck on May 12 has now reduced these tariffs considerably.

“When those tariffs spiked in April, we saw demand plummet,” noted Mike Short from C.H. Robinson Worldwide.”With this new reduction in place, we anticipate a meaningful influx of cargo within the next few weeks.”

“Many clients who had their goods waiting are eager to ship now,” he added. “Others are rushing orders this week and pushing suppliers for quicker production so they can take advantage of this temporary window.”

Cargo Dynamics Shift

The actions taken by customers largely depend on whether they had stocked up ahead of previous tariff hikes in April. Retailers often lean heavily on affordable consumer products from China.

“A lot of our smaller retail clients opted for a wait-and-see strategy,” Short explained further. “For others like industrial manufacturers whose forecasting is more complex due to long lead times—like machinery that takes eight or nine months—they’re less inclined to stockpile materials unnecessarily during uncertain economic times.”

Short also pointed out that many shipping routes connecting asia with both coasts have seen capacity reductions due to earlier tariff implementations; thus ocean carriers will need time for vessel repositioning.

C.H. Robinson holds the second spot among North America’s largest logistics firms according to Transport Topics’ Top 100 list and ranks twentieth globally among freight companies.

“We’re committed to helping our customers navigate these evolving regulations,” said FedEx Corp., emphasizing the importance of accurate paperwork for seamless shipment processing across its extensive network serving over two hundred countries.

FedEx also ranks second among North american for-hire carriers per Transport Topics’ listings.

A Window Opens

A report from TD Cowen highlighted how this three-month pause provides clarity for shippers; they expect increased capacity at ports within about three weeks following the declaration. However, bookings at Los Angeles port remain below last year’s levels despite rising ocean bookings post-announcement—indicating some shippers are still hesitant about making purchases right away.

“By early May traffic through LA’s port dropped by thirty percent,” Jason Seidl reported recently while noting ten cancellations scheduled for June already.” Current capacity sits only at thirty percent compared with peak COVID levels—indicating there’s room available should demand surge again soon thanks to this new deal.”