U.S. companies surge shipments from China following tariff pause

Businesses have begun ramping up shipments to the United States from China after President Donald Trump paused some of his tariffs on imports from that country, creating a surge in demand that could lead to supply chain bottlenecks in the coming months.

Businesses have begun ramping up shipments to the United States from China after President Donald Trump paused some of his tariffs on imports from that country, creating a surge in demand that could lead to supply chain bottlenecks in the coming months.

Freight bookings out of China increased nearly 300% this week compared to the week earlier, soaring to the highest levels of the year, said Ben Tracy, vice president of strategic business development at Vizion, a company that produces container-tracking software. That came after Trump announced Monday that he was reducing the tariff on Chinese imports for 90 days while Washington and Beijing continue trade talks. 

U.S. companies halted shipments and canceled orders last month, when Trump ratcheted up his tariffs on Chinese imports to more than 145%, making it unaffordable for many companies to import their goods. While Chinese imports still face a 30% tariff, companies appear to be taking advantage of the 90-day pause on the higher tariffs to catch up on delayed shipments and get as many products into the U.S. as they can at the relatively lower rate.

“Over the past month, we saw a huge drop off in trans-Pacific trade, especially from China, dropping by 60% or more in terms of those volumes,” said Jessica Dankert, vice president for supply chain at the Retail Industry Leaders Association. “So now that we have at least relative certainty for the 90-day window, we definitely expect to see those volumes ramp back up again.”

But despite the pause to some tariffs, companies aren't expecting smooth sailing in the coming months.