Customer Advisory: Temporary US-China Tariff Reductions May Spur Pre-Peak Shipping Surge

On May 11, U.S. and Chinese officials announced a temporary agreement to significantly reduce tariffs on each other’s goods. Effective immediately, both countries will lower reciprocal tariffs by 115% for a period of 90 days—down to 30% for U.S. tariffs on Chinese goods and 10% for Chinese tariffs on U.S. goods. The announcement follows the weekend trade talks held in Switzerland between U.S. Treasury Secretary Scott Bessent and Chinese officials.

Key Highlights:

• Effective May 14:
• U.S. tariffs on Chinese goods will be reduced from 145% to 30%
• China’s retaliatory tariffs on U.S. goods will be reduced from 125% to 10%

• 90-Day Window: This temporary relief is set to expire in early August, just ahead of the typical U.S. peak shipping season. Importers and exporters may accelerate cargo movements to take advantage of the reduced rates.
• Anticipated Volume Increase: Based on recent reporting and industry commentary, an increase in demand is likely as shippers adjust their timelines to benefit from the tariff pause—potentially straining capacity, equipment, and transit times on U.S.-China trade lanes.
• Policy Uncertainty: There is no guarantee of further extensions, and tariff levels may revert or shift again after the 90-day window closes.

China's Tariffs on U.S. Goods

U.S. Tariffs on Chinese Goods

KWE is closely monitoring developments and working with customers to secure capacity, adjust shipping plans, and mitigate potential disruptions.

Sources:

• USA Today – Trump live updates: US, China reach 90-day tariff deal
• BBC – US and China agree to reduce tariffs as trade war eases
• Reuters – US, China agree to temporary tariff cut after Swiss summit
• White House - Joint Statement on U.S.-China Economic and Trade Meeting in Geneva

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