We’re beginning our fourth month of 2025, and tariffs are the topic on everyone’s minds. If you haven’t noticed the change yet, you probably haven’t imported or exported anything in the past month or so. There was a 20% tariff levied on China imports back in February, and now, April 2nd has brought an additional 34%. For most of our customers, this means that there is a 54% import tax on the goods you’re bringing to the US from China. If you also had previous tariffs on your goods, the additional 54% is stacked on top of the previous tariff. The trade war is officially in full swing, and there’s no telling what comes next. These tariffs may even go higher as the trade war continues, so pay very close attention to tariffs levied on China as these will directly affect your imports. The American importer pays these tariffs. Not China. Tariffs must be paid prior to entry into the US. As these tariffs now put a hefty price tag on your imported goods, make sure you account for this payment in your cash flow plan. If tariffs aren’t paid upon US entry, your goods will be held by US customs and will accrue additional storage fees until they are paid. You can read more on the current tariff situation in Mike’s article this month, but in the meantime, let’s take a look at conditions at our US and China ports.
China Ports
Ports in China and Hong Kong are still working their way up to pre-CNY volumes. Operations are running smoothly with little to no delays. Expect some blank or rolling schedules this month as we see how tariffs are going to affect the flow of exports out of China. A slowdown in exports will result in more blank or rolling schedules. We’re also expecting to see at least one General Rate Increase on ocean freight this month. GRI’s may be mitigated to lower or no price increases depending upon the market.
US West Coast
The US West Coast ports are running smoothly with little to no delays or wait times from Long Beach to Seattle. Transit time from Southern China to the US West Coast is averaging about 17 days. Expect a week’s wait time to board the train if you’re shipping from the West Coast to Chicago, Minnesota, and Michigan. Once boarded, it takes 7 to 10 days for the train to reach Chicago.
US East Coast
Expect delays if you ship to the East Coast, as storms are causing issues in this trade route. We’re currently seeing an average of about 50 days transit time to the East Coast. Once arriving, vessels can expect about 1-4 day delays before berthing at port, especially in those states hit hard by the weather, such as Savannah and the Carolinas.
Expect a good deal of changes in tariffs this month as the trade war continues. The current situation is both fluid and volatile and will likely change by the week until trade deals are set in stone. And don’t forget to keep an eye out for Mike’s tariff updates as the situation unfolds. Stay strong freight friends!
