In Depth: Trump’s Tariff Flip-Flopping Has Chinese Exporters Hedging Their Bets
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Cosco Shipping's Panamanian Boston ship sets sail for the U.S. from Shanghai's Yangshan Port on May 24.
U.S. President Donald Trump’s fickle trade policy narrative has sent many Chinese firms on a rollercoaster ride over the past two months.
Levies imposed by the Trump administration on Chinese goods this year reached a mind-boggling 145% on April 9, forcing Chinese exporters into a frenzied calculus: when to ship, who should absorb the escalating costs and whether the U.S. market remained profitable. Beijing retaliated with tariffs of up to 125%, leaving Chinese importers of American goods in a similar bind.
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- The Trump administration increased tariffs on Chinese goods, reaching 145% by April 9. China retaliated with tariffs up to 125% on U.S. imports.
- A temporary truce on May 12 reduced most recent tariffs. The U.S. cut its top tariff to 30%, and China reduced its tariff to 10%.
- Companies are re-evaluating long-term strategies, including shifting production to other regions like Southeast Asia, due to policy uncertainty.
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Who’s Who
- Vizion Inc.
- Vizion Inc. is a U.S. supply chain data provider. An executive from Vizion Inc., Ben Tracy, provided data on the surge in container bookings from China to the U.S. following a temporary tariff truce, showing a 277% increase by May 14.
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What Happened When
- February 2025：
- Xu Wu leased a factory in Cambodia capable of producing 25,000 pairs of boots monthly.
- March 2025：
- The U.S. imposed a 20% fentanyl-related tariff on Chinese goods.
- March 2025 to just before May 12, 2025：
- Xu Wu's factory received just over 100,000 pairs of boot orders—normally a single month's volume.
- April 2, 2025：
- Trump announced sweeping 'reciprocal tariffs' on trading partners; China faced a 34% rate, and the cumulative U.S. export tariff burden reached 54%.
- April 2, 2025：
- China quickly responded by imposing an equivalent 34% tariff on U.S. imports.
- April 8, 2025：
- Washington raised its tariff rate to 84%.
- April 9, 2025：
- U.S. levies on Chinese goods reached 145%.
- April 9, 2025：
- The Trump administration announced a 90-day pause on higher tariffs for many countries, including Cambodia, which then faced a 10% duty until July 2025.
- April 10, 2025：
- Washington further raised its tariff rate to 125%.
- April 11, 2025：
- China mirrored U.S. tariff increases, reaching a 125% tariff rate on American imports.
- By mid-April 2025：
- Chinese exporters found price hikes no longer worked as customers stopped buying; some suspended all U.S. shipments.
- May 5, 2025：
- China-U.S. container booking seven-day average was 5,709 TEUs.
- May 12, 2025：
- Beijing and Washington announced a 90-day suspension of most of their recent tariffs.
- May 12, 2025：
- A temporary truce dialed back most recent tariffs, prompting export surges at Chinese factories.
- May 14, 2025：
- U.S. slashed its top tariff on Chinese goods from 145% to 30%.
- May 14, 2025：
- China reduced its 125% tariff on U.S. imports to 10% and suspended various non-tariff measures.
- By May 14, 2025：
- The seven-day average booking for containers from China to the U.S. jumped to 21,530 TEUs.
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