The recent breakthrough in US–China trade tensions has sparked a flurry of activity across Chinese factories and ports. Companies in both countries are rushing to make the most of a 90-day rollback of heavy tariffs announced earlier this week.
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Businesses React to Tariff Pause
A 30% spike in orders has meant that Niki Ye’s company, which sources toys for sale on Amazon, is staffing up to meet demand. “And this is only the first week,” she said. Liu Changhai, a sales manager at an export-oriented agency in eastern China, reported sales matching those during a typical peak season, but noted a delay in sending goods due to new orders not being manufactured yet.
Scramble to Ship Out Inventory
Bookings for shipping containers from China to the United States surged almost 300% in the seven days ending May 13, compared to the week ending May 5. US Trade Representative Jamieson Greer and Treasury Secretary Scott Bessent announced the 90-day tariff pause, bringing US tariffs on Chinese imports down to 30%. China’s duties on US imports fell from 125% to 10%.
Companies Navigate the Rush
Ben Schwall, whose China-based supply chain management firm helps companies with product sourcing, said, “We have orders that have been placed in Vietnam and in Indonesia and we’re now asking ‘Can you move (the orders) back to China?'” Greg Mazza, owner of a lighting company, said he’s “acting rapidly” to receive inventory produced in China earlier but not shipped out. “We did release a lot of containers now, or they’re being released, and we are placing orders,” he said.
Uncertainty Looms
Despite the progress, uncertainty remains around US-China tariffs and duties on other countries in the region. Companies are looking at two ticking clocks, one counting down the 90-day pause on tariffs from countries like Vietnam and the other on those from China. Vivi Tong, a Chinese manufacturer, said, “We are also working hard to expand other new markets… especially Europe, (where our orders) have increased by almost 20%.”
Shipping Costs Increase
Tong also reported a 50% hike in shipping costs, from $4,000 to $6,000 per container, likely to be passed on to American shoppers. Danish shipper Maersk is adding capacity to its trans-Pacific services after an increase in bookings following the agreement. Ben Tracy, vice president of strategic business development at Vizion, noted that the “container export rush” could interfere with the peak shipping season in summer.
