BAROMETER. The reduction in customs duties between the United States and China has provisionally revived ordering on the Asia-US corridor and, with it, the container shipping business. The absence of visibility continues to perturb the sector, however.
1/ Main developments
- Provisional calm in China-US trade war
On 12 May, the United States and China announced that they had agreed to pause their trade war for 90 days. In reply to the prohibitive 145% duties imposed by the United States, China riposted with 125% duties on US products. Since 14 May, however, tariff levels fell to 30% and 10% respectively. Measures against the European Union have also been paused until 9 July 2025, with increases in duties limited to 10% in the interim. Some products have been exempted from this increase, however, notably those which are already paying additional sectoral duties.
Before the 12 May agreement, the concerned parties on both sides were waiting. The extra customs duties were at such levels that trade was virtually paralysed. After the agreement, however, there was a rush of orders, which will need to be processed as quickly as possible, given the uncertainty about the period after the 90-day pause. The shipping companies, meanwhile, have brought in additional capacity and increased rates on transpacific routes.
In Europe, port congestion is not the result...
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