US President Donald Trump has announced the suspension of reciprocal tariffs on all countries, with the exception of China, where tariffs have been increased to 125 per cent.
As part of the policy change, the baseline 10 per cent tariff on imports from non-China countries remains in place, while China faces an escalated tariff rate, signalling ongoing tension in the trade war.
The tariff suspension will last for 90 days, providing a window for shippers to resume operations and clear the backlog of shipments that had been put on hold.
“This creates exactly the kind of stop-and-go fluctuations which tend to be prone to create bottlenecks in the supply chain,” commented Lars Jensen, CEO of Vespucci Maritime, on LinkedIn.
“The only saving grace is that the disruption has only lasted about a week, and hence the impact should in the main be manageable—but some bottleneck issues are likely.”
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Jensen added that those who chose to delay shipments during the initial announcement ultimately made a sound decision. However, he also cautioned that the environment remains highly changeable.
There is precedent for these kinds of temporary suspensions to be lifted, only to see tariffs reimposed later—such as in the cases of Mexico and Canada.
With the current suspension, shippers may consider advancing their peak season planning to ensure cargo moves before potential policy changes: “Shippers from non-China origins might want to start the peak season essentially already now—or as fast as possible—in order to get their peak season loads moved prior to July 9,” Jensen noted.
In response to the US tariff changes, the European Union has also decided to postpone its retaliatory tariffs against the US for another 90 days.
Looking ahead, shippers are also faced with the broader question of whether to prepare for strong demand in the second half of 2025 or take a more cautious approach in anticipation of a potential economic slowdown, concluded to Jensen.
