Trump’s 90-day Tariff freeze excludes China

China, excluded from the suspension of retaliatory tariffs for 90 days, now faces a steep 125% tariff on exports to the US. In response, Chinese exporters have slashed shipments, increased prices, and rerouted goods to other markets. As the shock ripples through the supply chain, US retailers and importers are scrambling for alternatives.

The immediate fallout is striking: weekly TEU bookings from Asia to the US dropped by over 60%, from 633,000 to just 225,900, according to Dun & Bradstreet. Importers have delayed key seasonal orders by up to two months while they assess the landscape. With tariffs now exceeding 150% on some Chinese-origin goods, previously profitable products may no longer be viable in the US market.

The 10% blanket tariff now applies to all non-Chinese imports – which is on top of existing duties – with only limited exemptions for sectors such as semiconductors, energy, and critical raw materials. That rate still allows countries like Vietnam and Taiwan to maintain competitiveness, where the tariff impact translates to around 3% on shelf prices – prompting a dramatic pivot in sourcing strategy.

While China retaliated with 84% tariffs on US goods, it has so far held back from matching Trump’s full escalation. Meanwhile, the UK is lobbying to remove the 25% auto duty and soften the 10% import levy on British goods. Across the Channel, the EU is holding back countermeasures for now, though President von der Leyen has warned they are ready if talks collapse.

Pressure is building on US Customs and Border Protection (CBP), with the increased complexity of tariff codes and documentation creating more manual processing work, while staffing levels have not risen in line with demand. There is growing concern that CBP could be overwhelmed if volumes rise suddenly or new duties are introduced.

The administration is also weighing revisions to a separate – and controversial – proposal: port fees of up to $1.5 million for Chinese-built or operated ships entering US terminals. Officials have hinted changes are coming to protect American exporters and avoid exacerbating supply chain stress.

Despite cautious optimism from shipping lines that volumes could recover later in the year, the trade war is already reshaping supply chains and shifting long-term commercial relationships. The 90-day pause may be a break – but it’s far from a reset.

Contact me now to discuss your current position, review contingency options, or prepare for further trade policy shifts.