After an initial surge in transpacific ocean freight volumes, when the US and China paused their trade war for 90 days back in May, demand on the tradelane has levelled off as other countries have more recently become the target of Trump’s tariff measures.

However, the US has made significant moves to agree trade deals with a number of Asian countries in recent weeks, as outlined below.

Japan

A new deal that lowers tariffs on auto imports and avoids new levies on other goods. The big win for the US is the $550 billion package of US-bound investments and loans from Japan.

Indonesia

A framework agreement where Indonesia will face a 19% tariff on exports to the US, while eliminating tariffs on 99% of US imports.

Philippines

The US will impose a 19% tariff on Philippine exports, but American goods will enter the Philippines without tariffs. The agreement also includes an expansion of military cooperation, which adds a layer of strategic importance to the deal.

Vietnam

A significant reduction in the planned tariffs on Vietnamese imports, from 46% down to 20%. In return, Vietnam will charge no tariffs on US products, but there will be a steep 40% tariff on goods transshipped through Vietnam.

What’s happening with China?

This week, the US Treasury Secretary said that talks were “in a good place”, ahead of upcoming trade meetings between the countries in Sweden next week. He further suggested that the current pause in sky high rates will likely be extended past its August 14th deadline.

While the transpacific trade lane may never be the same, as all Asian countries are subject to significantly higher tariffs than before the Trump administration came into power, these new deals should help remove the uncertainty that has plagued the world’s biggest marketplace.

As an industry stakeholder in transpacific ocean freight services, Westbound will continue to monitor developments closely.

If you have any questions regarding the above, then Westbound are here to help. So, please do not hesitate to contact us.