U.S. Raises Tariffs on China to 84%, Effective Today: Trade War Escalates !

China announced retaliatory tariffs of 34% on U.S. goods last Friday (April 4), directly responding to Washington’s earlier reciprocal measures. In a social media post, U.S. President Donald Trump declared that the U.S. will impose an additional 50% tariff on Chinese goods starting April 9. Combined with existing 20% universal tariffs, the 34% reciprocal levy, and the new 50% surcharge, total tariffs on Chinese goods now reach 104%.

U.S.-China Tariff Shakeup Triggers Logistics Turmoil: Shipments Halted, Supply Chains Rebuilt

Amid election-year trade policy upheaval, global logistics face fresh chaos. The U.S. escalated tariffs on multiple countries this week, with Chinese imports hit hardest at 54%. In retaliation, China’s Ministry of Commerce will impose 34% tariffs on U.S. goods starting April 10, alongside rare earth export controls—a critical blow to U.S. tech sectors like semiconductors and EV batteries.

Key Updates:

  •  U.S. Tariff Surge: The U.S. Customs and Border Protection (CBP) confirmed a 10% baseline tariff on global imports effective April 5, 2025, with 84% cumulative tariffs on Chinese goods (including Hong Kong and Macau) by April 9. The EU faces 20%, Vietnam 46%, and Lesotho 50%.

  •  Grace Period: Goods shipped before April 5 can avoid new tariffs if cleared by May 27. Shipments from April 5-9 incur only the 10% baseline rate. Analysts warn this 53-day window will trigger a global pre-tariff shipping rush.

  •  Market Reactions:

▫  Chinese shippers pause U.S.-bound shipments, storing goods at transit hubs.

▫  Major freight forwarders report clients delaying U.S. customs clearance "until policies stabilize."

▫  Logistics managers note widespread "wait-and-see" tactics, hoping for tariff exemptions.

Supply Chain Realities:
Chris Rogers, Head of Supply Chain Research at S&P Global, highlights three barriers to relocation:

 ⒈ U.S. production gaps remain unfilled.

 ⒉ Relocation costs may exceed tariff hikes.

 ⒊ Ecosystem rebuilding requires 3-5 years.

China’s countermeasures include adding 27 U.S. firms (e.g.,高点航空技术, Saronic Technologies) to an export control list, restricting investments and executive travel.

Airfreight Volatility: Tariffs and Tax-Free Thresholds Drive Price Swings

Global air cargo markets are reeling from tariff-induced volatility. The TAC Index shows:

  •  Baltic Air Freight Index rose 7.1% over four weeks (up 5.1% YoY).

  •  China-U.S. Surge: Hong Kong outbound rates up 6.3% (1.4% YoY); Shanghai routes jump 11.9% monthly (3.4% YoY).

  •  Crash Risk: Analysts warn of post-April 2 volume drops as shippers race to beat tariffs.

E-Commerce Lifeline:
Freightos’ Judah Levine notes that expiring U.S. de minimis tax-free thresholds on May 2 could worsen chaos. However, strong e-commerce demand may prevent a full price collapse, driving capacity shifts to Europe and Southeast Asia.

U.S. Ports Brace for Double-Digit Import Slump

Gene Seroka, Executive Director of the Port of Los Angeles, predicts at least a 10% drop in container imports this year due to tariffs. Key factors:

  •  Inventory Glut: Importers overstocked furniture, electronics, and appliances earlier.

  •  Cost Shock: Dun & Bradstreet estimates a 29.3% rise in U.S. import costs if volumes hold.

  •  Supplier Shifts: Firms eye Vietnam, Indonesia, and Malaysia for lower tariffs.

Retail Pressure: Retailers push Chinese suppliers to absorb costs, but consumers may ultimately pay.

Pharma Wins Tariff Exemption—But Challenges Loom

While finished drugs escape new U.S. tariffs, 10% levies on raw materials threaten long-term stability:

  •  Cost Chain Reaction: 90% of U.S. biotech firms rely on imported components (BIO data).

  •  232 Investigation Risk: Trump may invoke national security for additional tariffs.

  •  Industry Response: Pharma lobbies for phased implementation amid 3-5 year supply chain reshuffles.

Shengshi Logistics: Your Partner in Navigating Trade Storms

Efficient Customs Clearance

•  Expert Team: Licensed customs brokers ensure accurate tariff classification and compliance.

•  Multi-Agency Coordination: Streamlined filings for specialized goods (FDA, EPA, etc.).

Delay Mitigation

•  Pre-Clearance Warehousing: Store goods in U.S. hubs (LA, NYC, Houston) to bypass delays.

•  40,000 Sq Ft Network: Rapid post-clearance delivery via 300+ trailers and partnerships.

Cost Optimization

•  Real-Time Analytics: Monitor port congestion, vessel wait times, and capacity shifts.

•  China-U.S. Coordination: Local offices provide end-to-end support for cross-border challenges.

Act Now
With tariffs reshaping global trade, let Shengshi Logistics optimize your supply chain for resilience. Contact us to secure your operations in this volatile era.