US Tariff Update - May 12, 2025

UPDATED: May 12, 2025

Tariff Policy Update from the Trump Administration

On May 12, 2025, the United States and China issued a joint statement announcing a temporary suspension of select tariffs following high-level trade talks in Geneva. These changes, set to take effect by May 14, are intended to provide a window for further negotiation over the next 90 days.

While this is a promising step, implementation details from U.S. Customs and Border Protection (CBP) are still pending, and the long-term tariff outlook remains uncertain. We’re monitoring developments closely and are here to help you prepare.

Summary of the Agreement

The United States will suspend 24 percentage points of its additional tariffs on imports from China (including goods from Hong Kong and Macau) for 90 days. A 10% base tariff will remain in place on affected goods.

The U.S. will also fully remove certain additional tariffs imposed earlier in April.

China will mirror this action, suspending 24 percentage points of its tariffs on U.S. goods while retaining a 10% base rate, and rolling back other April-based tariff increases and non-tariff countermeasures.

Tariffs related to fentanyl-linked categories will remain unchanged at 20%.

As a result of these changes, overall U.S. tariffs on Chinese goods will temporarily fall from approximately 145% to 30%.

However, these reductions are only guaranteed for 90 days. After that, tariffs may revert, increase, or be renegotiated altogether.

What This Means for Shipping

This limited-time tariff relief is already prompting shippers to accelerate their import schedules — creating ripple effects across global freight lanes.

Here’s what to expect:

• Booking Surge: Importers are moving quickly to take advantage of lower costs while they last. Space is already becoming tight.
• Reduced Capacity: Carriers had withdrawn vessels from the Asia–North America trade due to weak demand earlier this year, redirecting them to other routes. It may take weeks or months to bring this capacity back.
• Rising Freight Rates: As demand spikes, both spot market and contract rates are expected to rise, with Peak Season Surcharges (PSS) already taking effect on some routes.

Port Congestion Risk: A sudden influx of cargo—especially delayed or previously held shipments—could result in backlogs and slowdowns at key terminals.

Shippabo’s Recommendations

• To mitigate the risk of delay and rising costs, we recommend the following:
• Book Early: Secure your space as soon as possible. Delays in booking could result in rolled cargo or higher rates.
• Use Priority Services When Needed: For critical shipments, we can offer access to guaranteed transit and premium space options.
• Build Flexibility Into Your Plans: Where possible, consider alternative ports or service routes to avoid high-congestion areas.

This is a rapidly evolving situation, and we’ll continue to keep you updated as further details emerge from CBP and other regulatory authorities.

For questions about your specific shipments or to begin planning your next moves, please contact Shippabo today.