Tariff Talk Thursday is Back!
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Tariff Talk Thursday is Back!
Visit our Events page for details or register here.
MAY 15, 2025
The recent 90-day reduction in the reciprocal tariff on goods from China—from a steep 125% to just 10%—has brought a mixed reaction among importers. While this move offers short-term financial relief, Section 301 duties (ranging from 7.5% to 25%) and the original fentanyl IEEPA duties of 20% remain in effect on most Chinese goods. Nonetheless, the tariff reprieve has encouraged many importers to lift their hold on shipments from China, aiming to take advantage of the temporary reduction before duties possibly return to their previous levels. This sudden shift in importer behavior has already started reshaping supply chain activity and demand forecasts.
No formal action has been taken following President Trump’s commitment to lifting sanctions against Syria during his regional travel this week. In the absence of an official executive order or filings in the Federal Register, no specific scope or conditions have been outlined. As such, potential shippers are advised to proceed with caution. Notably, on May 7, the President signed a continuation of the national emergency regarding Syria, which had been set to expire on May 11.
The abrupt policy change is putting heavy strain on shipping capacity, especially for Transpacific routes. Ocean freight capacity out of China has been significantly reduced since the initial tariff implementation, and the tariff cut has triggered a rapid surge in demand for both ocean and air freight. As a result, freight rates are climbing sharply, with little room left for last-minute bookings. In May alone, nearly one-third of planned Transpacific ocean capacity has been canceled through blank sailings and service suspensions, leaving a severe backlog just days after the 90-day pause was announced. Importers are urged to pre-book cargo as early as possible and prepare for further delays due to vessel reassignments and growing congestion at Asian ports. For assistance, our pricing team is available at PricingTeam@oceanair.net.
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