- Washington and Beijing reached a 90-day tariff truce, reducing additional tariffs from 145% to 30%, offering short-term relief to exporters.
- The deal was brokered during two days of talks in Geneva between top officials from both countries.
- Exporters remain cautious as long-term uncertainty and high tariffs continue to impact production and logistics decisions.
Jacob Rothman, co-founder of a company that manufactures kitchenware in China for major US retailers, was “shocked and elated” at the truce, but emphasized the reprieve is only temporary.
“It’s exactly the percentage that keeps my categories of product viable,” he said, noting that while there is “a bit more breathing room … beyond that, it’s uncertain.”
Temporary Surge in Shipments
Following the rollback announcement, exporters and logistics providers expect a short-term shipment spike to the US. Wang Xin, from the Shenzhen Cross-Border E-Commerce Association, said shipments are expected to “significantly increase” in the coming weeks.
Zhu, a manager at a logistics firm, added that demand for US-bound shipping is “basically going to explode.”
A freight agent based in Shenzhen said many clients plan to stock up ahead of Thanksgiving and Christmas, while shipping prices are expected to rise due to congestion at ports.
Ken Huo, a trade association supervisor, noted that exporters are moving quickly: one trader was told to “immediately ship all stocked goods” right after the Geneva announcement.
Persistent Uncertainty
Despite the rush, many businesses remain cautious.
Wang Xiaosha of a company producing decorative prints said they “wouldn’t dare” accept new US orders until a more permanent deal is in place.
Ren Chaoqun, product manager at a car accessories manufacturer, acknowledged the pause helps clear shipping backlogs, but emphasized, “Tariffs are still a big challenge. There is a little bit [of relief]. But the situation is still very severe.”
Wang Chao, from a Shenzhen-based cargo firm, said US orders dropped by about 50% in April and are only now beginning to recover.
Production Shifts Remain in Motion
While the agreement slows the pace of production relocation from China, exporters are not reversing course entirely. Rothman explained, “It means the migration of production from China to our facilities in Cambodia and India could be just that – a migration, not an evacuation.”
He added, “We now have about four to five months to ship the next season’s products. If negotiations continue to progress, it could mean that our four factories in China – and 20 years of investment – can be preserved.”
Though the tariff rollback brings temporary relief, the underlying tensions and policy unpredictability mean exporters remain hesitant. The coming weeks will see heightened shipping activity, but businesses are holding off on long-term commitments until a clear, stable trade resolution is achieved.
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Source: AFR
