The United States and China have announced a new tariff agreement that marks a turning point in their trade relations. After months of escalating tariffs, both sides struck a deal to roll back most of the recent tariff hikes and institute a 90-day agreement. This development will be welcome news for global supply chains, and U.S importers.
So, what does this mean for you?
Tariff Rollbacks: The United States will reduce tariffs on Chinese goods from 145% to 30%, and China will lower its duties on U.S. imports from 125% to 10%. This rollback lifts over 100 percentage points of tariffs on both sides. China’s Commerce Ministry stated that 91% of tariffs are being canceled, with another 24% suspended during the agreement.
Trade Flows: This could mean an increase in shipping volumes between China and the U.S. Many importers had delayed or canceled shipments, leaving goods in warehouses awaiting clarity. Now, with duties reduced, those goods could move allowing goods to flow into the U.S. markets again, easing bottlenecks and improving product availability.
Timeline Acceleration: We may see an influx of importers racing to move goods before the 90-day window closes. This urgency could lead to a short-term surge in demand for faster and more strategic shipping options.
Supply Chain Strategy Adjustments: With tariffs now lowered to 30%, some may consider direct shipping routes. However, the agreement is temporary, and tariffs remain above pre-dispute levels. As a result, many businesses could maintain contingency plans while using this period to review inventory levels and evaluate supply chain strategies
Cost Relief: Lower duties give importers a chance to reduce costs, regain competitiveness, and better plan for the months ahead. Products that were previously too costly to import may now be viable again.
For U.S. importers, this agreement offers real opportunity. The tariff decreases from 145% to 30% allowing many businesses to consider resuming imports that had become unprofitable. Business could choose to now ship backlogged orders and replenish inventory during this time without unbearable costs. Sectors like consumer goods, electronics, machinery, and apparel are likely to benefit the most.
Proactive Planning: Our global teams can coordinate with carriers to fast-track shipments, where possible and adapt supply chain plans.
Optimizing Routes & Compliance: If your business had rerouted to avoid tariffs, our local teams can help you find more efficient paths. Our customs experts are also reviewing shipment details to ensure they comply with the new tariff rates and avoid clearance delays at U.S. ports.
Data-Led Decision Making: We can work with you to review your supply chain data and identify opportunities to lower your carbon footprint—such as selecting more environmentally friendly routes or consolidating shipments.
Balancing Inventory & Demand: We can also analyze your order and inventory patterns to advise on how to optimize stock levels, ensuring a balance between responsiveness and efficiency across your network
If your business is looking to seize the opportunities from this tariff agreement, then let’s talk – connect with us today– our experts will work with you to optimise transit times, manage costs, and keep your supply chain a step ahead in this evolving trade environment.
Disclaimer: The information provided in this communication is accurate at the time of issue. However, circumstances may change, and the information may no longer be applicable or accurate in the future. We recommend verifying the details directly with us if you require support at a later date.
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