April 10th, 2025 – As of Wednesday, April 9th, President Trump announced a 90-day pause on ‘reciprocal’ tariffs, except for China, who now faces a 125% tariff effective immediately.
The 90-day pause only applies to targeted tariffs as the universal tariff of 10% remains in effect for imported goods from all countries. This does not apply, however, to Canada or Mexico as their goods, unless USMCA-compliant, are still subject to the 25% fentanyl-related tariff.
Sector-specific tariffs (i.e., auto, steel and aluminum) also remain in effect at 25%.
The increase from 104% to 125% tariffs on China came about after Beijing retaliated with an 84% tariff on U.S. goods set to take effect Thursday, April 10th. Please see below for further details:
Impact on Ocean Freight
The surge in ocean freight demand following the ‘reciprocal’ tariff announcement was short-lived, as shippers rushed to move goods before the new duties took effect. This led to temporary increases in container rates, with Asia-U.S. West Coast prices rising 3% to $2,246 per FEU and East Coast rates climbing 5% to $3,541. However, demand is expected to decline sharply in the coming months.
The Port of Los Angeles projects a 10% drop in volume for the second half of the year, exacerbated by overcapacity and the risk of an economic downturn. Despite temporary rate rebounds due to general rate increases, container prices have fallen below 2024 levels, particularly on Asia routes. With demand expected to shrink further due to tariffs, freight rates face continued downward pressure.
Trans-Border will continue to monitor the situation and advise customers accordingly. For questions or concerns regarding tariffs, please contact our Import Compliance team or give us a call at 518-785-6000.
