Container shippers win China-US tariff reprieve, await volume rebound

Reuters ^ | May 12, 20254:29 PM CDT | Rachel More and Lisa Baertlein

[E. Pluribus Unum]

Summary

• Shipping firms, port operators, retailers welcome progress
• Industry experts say 30% tariffs remain a risk for US consumers
• Shipping rates could rise with a cargo rush

BERLIN/LOS ANGELES, May 12 (Reuters) - The container shipping industry on Monday welcomed an agreement between the United States and China to temporarily slash punishing tariffs, saying it expected to be buoyed by a resulting recovery in bookings from China to the U.S.

The United States will cut extra tariffs it imposed on Chinese imports in April to 30% from 145% and Chinese duties on U.S. imports will fall to 10% from 125% for the next 90 days, the two sides said on Monday.

Trade between the world's two largest economies plummeted in the midst of the standoff, prompting container shipping companies like MSC and Cosco (601919.SS)

It is not yet clear if the reprieve will spark a big rebound in shipments to the United States. Some Chinese factories were .

It's welcome news that these guys are talking and that the numbers have been pulled down from those sky-high levels," said Gene Seroka, executive director of the Port of Los Angeles - the busiest U.S. seaport and the No. 1 gateway for ocean imports from China. He was referring to the tariff rates.

"There's still much more work in front of us," Seroka said, adding that 30% tariffs on goods for the world's leading export nation remain significantly higher than before President Donald Trump took office.

A rebound in shipping demand could...

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TOPICS: Business/Economy; China; Foreign Affairs; Front Page News; Government; Politics/Elections
KEYWORDS: chineseuminbound; owngoal; tariffsaretaxes; trumpflation

[Fido969]

It’s all about Saving Christmas.

[Sacajaweau]

We no longer do gifts. We donate to St. Jude’s Children Hospital.

[plain talk]

Temporary truce of sorts so people can buy stuff for Christmas or whatever.

[BipolarBob]

Harbor Freight is saved!

oops

[ryderann]

Wonder if Denmark (Maersk) was beginning to soften its stance on Greenland? Trump could have squeezed them a bit more.

[dadgum]

Me? Jaded.
Opinion? Bullsh*t and bluster. Smoke and mirrors. Kabuki theater. Misdirection. Lies and broken promises.

I don’t care anymore.

[Robert357]

The whole tariff thing is overstated by the media. A typical retail item is marked up by about a factor of 4 from wholesale to retail. While it depends on the item and the market, that is a reasonable benchmark. Let’s use a hypothetical $10 wholesale item.

That item with a 30% tariff would have an extra $3 cost paid to the US Treasury at import. I recently purchased an item from Walmart and was told that I would have to pay any extra taxes or tariffs. What this means is that the $10 wholesale item that previously retails for $40, will now cost $43.

That is not the doom and gloom or horrific concept being discussed by the media.

Are tariffs going to change the amount of goods purchased? Absolutely, but they will not shut down trade or container traffic as the media is suggesting. Admittedly tariffs of over 100 percent would slow down container traffic, but they would not likely stop all traffic.

[LibertyFound]

The President is not Santa Claus. Let’s actually reindustrialize before we lose the human capital to make it happen.