President Donald Trump has announced a “total reset” in trade relations between the United States and China, following a weekend of high-level negotiations in Switzerland.
The agreement represents a significant step toward easing trade tensions between the two economic superpowers. As part of the deal, both countries will suspend key tariffs for an initial 90-day period.
During this window, the U.S. will reduce its tariffs on Chinese goods from 145% to 30%, while China will cut its retaliatory tariffs on American imports from 125% to 10%.
While no formal start date has been confirmed as far as we can tell, many of President Trump’s prior tariff changes have come into effect with little delay.
The US sector-specific tariffs, such as those on steel and automobiles, will remain in place.
President Trump warned that if meaningful progress isn’t made within the 90-day suspension period, the higher tariffs could return. “We’re not looking to hurt China,” he stated. “But China is being hurt very badly.”
A spike in transpacific freight volumes is probably now likely, potentially driving up ocean freight rates.
With carriers already planning rate increases for May, and having tightened capacity through blanked sailings and suspended service loops, this development appears to validate their gamble on positive trade talks.
Westbound Global welcomes this positive trade news, even if temporary. For more information about our transpacific and fulfilment services, please don’t hesitate to contact us.
If you have any questions regarding the above, then Westbound are here to help. So, please do not hesitate to contact us.
